Airport Authority (DAA) but for the entire Irish economy.
Economic output declined significantly during 2009, as the full impact
of the recession took hold. The fall o in consumer spending was marked,
as unemployment levels increased significantly and those still in employment
decided to save rather than spend.
While the European and US economies struggled to emerge from
recession, the slowdown in the domestic economy was mirrored by the
downturn in the UK, which is our nearest trading partner and a key provider
of air traffic into and out of the Republic of Ireland. Passenger traffic at our
three Irish airports at Dublin, Cork and Shannon declined by 13% to 26.1
million last year, reflecting the slowdown in air travel due to the economic
downturn. The traffic performance reflected the fact that the Irish
economy was among the hardest hit by the recession. Overall passenger
trac at European airports for 2009 decreased by 6%compared with 2008,
with only one of the top 20 airports recording growth.
Despite the fall in passenger traffic, our Irish airports continue to play a
pivotal role in the Irish economy. Last year, our three airports handled
96% of all international air traffic to the Republic of Ireland and 75% of all
air traffic to the island of Ireland.
It is understandable that in the midst of a major downturn, an
important and natural focus is on current challenges. The DAA has taken
considerable steps to address its cost base and has agreed and already
begun to execute a Cost Recovery Programme (CRP) with its employees,
which will generate annual payroll savings and efficiencies of €38 million.
The plan includes pay reductions for all sta earning the annual equivalent
of more than €30,000, a voluntary severance scheme which will see
about 300 employees leaving the company and changes in work practices.
Gaining agreement on this programme represents a major achievement for
the company and its entire workforce. In addition, the CRP will see further
reductions in operating costs.
However, for an airport operator with a strategic vision, it is essential
to recognise that the current recession, which has had a significant impact
on passenger numbers, will end. The long-term pattern for air traffic
shows that in the wake of every economic or geopolitical shock, there is a
subsequent return to significant growth.
As providers and operators of key elements of national infrastructure,
the Board and management of the DAA should have a sagacious view of
the long-term requirements of the business and how best to meet the needs
of the Group’s multiple customers and stakeholders.
As an open, export-led economy, with no land link to continental Europe,
Ireland relies heavily on its aviation infrastructure to support the
requirements of the business and tourism sectors. The traffic that passes
through our airports supports more than 100,000 jobs and we provide vital
hubs for the financial well-being of the entire economy.
The decisions that are made or not made in relation to airport
operations and developments have consequences that may reverberate
Airport Authority (DAA) but for the entire Irish economy.
Economic output declined significantly during 2009, as the full impact
of the recession took hold. The fall o in consumer spending was marked,
as unemployment levels increased significantly and those still in employment
decided to save rather than spend.
While the European and US economies struggled to emerge from
recession, the slowdown in the domestic economy was mirrored by the
downturn in the UK, which is our nearest trading partner and a key provider
of air traffic into and out of the Republic of Ireland. Passenger traffic at our
three Irish airports at Dublin, Cork and Shannon declined by 13% to 26.1
million last year, reflecting the slowdown in air travel due to the economic
downturn. The traffic performance reflected the fact that the Irish
economy was among the hardest hit by the recession. Overall passenger
trac at European airports for 2009 decreased by 6%compared with 2008,
with only one of the top 20 airports recording growth.
Despite the fall in passenger traffic, our Irish airports continue to play a
pivotal role in the Irish economy. Last year, our three airports handled
96% of all international air traffic to the Republic of Ireland and 75% of all
air traffic to the island of Ireland.
It is understandable that in the midst of a major downturn, an
important and natural focus is on current challenges. The DAA has taken
considerable steps to address its cost base and has agreed and already
begun to execute a Cost Recovery Programme (CRP) with its employees,
which will generate annual payroll savings and efficiencies of €38 million.
The plan includes pay reductions for all sta earning the annual equivalent
of more than €30,000, a voluntary severance scheme which will see
about 300 employees leaving the company and changes in work practices.
Gaining agreement on this programme represents a major achievement for
the company and its entire workforce. In addition, the CRP will see further
reductions in operating costs.
However, for an airport operator with a strategic vision, it is essential
to recognise that the current recession, which has had a significant impact
on passenger numbers, will end. The long-term pattern for air traffic
shows that in the wake of every economic or geopolitical shock, there is a
subsequent return to significant growth.
As providers and operators of key elements of national infrastructure,
the Board and management of the DAA should have a sagacious view of
the long-term requirements of the business and how best to meet the needs
of the Group’s multiple customers and stakeholders.
As an open, export-led economy, with no land link to continental Europe,
Ireland relies heavily on its aviation infrastructure to support the
requirements of the business and tourism sectors. The traffic that passes
through our airports supports more than 100,000 jobs and we provide vital
hubs for the financial well-being of the entire economy.
The decisions that are made or not made in relation to airport
operations and developments have consequences that may reverberate
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