Press Release

Derry City Council commences business review at City of Derry Airport

Monday 05th January 2009

Derry City Council has today commenced discussions with employees and union representatives at City of Derry Airport to assist with reducing operational costs and safeguarding future growth at City of Derry Airport. The discussions are against a background of increasing financial pressure facing Local Authorities in Northern Ireland as a result of a reducing penny product and uncertainty with general grant resource, two essential financial sources needed to support the delivery of everyday public services.

Chief Executive of Derry City Council, Valerie Watts said: “Derry City Council has a unique challenge in 2009/10 as it also finances a regional airport that is influenced more by the changing economic and commercial environment than everyday public services. Derry City Council must act now to consolidate services at City of Derry Airport to safeguard future growth and the employment the airport supports. This will be achieved through a savings in operational costs along with a business plan that delivers commercial and passenger growth.”.

Over the past number of years the airport has experienced exceptional growth in passenger numbers coupled with an increasing operational deficit rising from £1.7million to over £4million. It is estimated the Airport generates approximately £40million into the local economy. A proposed target for a reduction in operational costs is savings in the region of £600,000 at City of Derry Airport. This is against an overall proposed savings plan in excess of £1.6million for Derry City Council. Members are considering options as part of the ongoing rates estimates process and have recently made representation to Minister Dodds to call for immediate action to ease the financial pressures facing Derry City Council this year.

Proposals for increased commercial activity and improved income targets at City of Derry Airport are supported through the appointment of Albert Harrison OBE as Airport Manager for a six-month period to deliver specialist management support to the management team including the achievement of key targets within the business plan. Mr Harrison will take up his position mid-January 2009.

Mr Harrison brings substantial aviation and commercial experience to City of Derry Airport. He held senior management positions with TBI Holdings, a global aviation company, including Managing Director of Stockholm Skavsta, Cardiff International Airport and Managing Director of Belfast International Airport. His track record in business growth, revenue generation and management support has assisted many of the airports improve passenger numbers and business performance.

Prior to this position he was the Airport Director of Belfast City Airport. Mr Harrison also worked for Cathay Pacific Airways for eighteen years overseeing a material management function with an annual budget in excess of $300m.

Mr Harrison retired in November 2006 from his role of Chief Operating Officer at Aberties following their acquisition of TBI Holdings. This included responsibility for the profitability of nine global airports. Since his retirement he has remained active in aviation through a number of consultancy projects.

Ms Watts concluded: “We need to ensure City of Derry Airport remains an affordable and successful regional facility. This is a challenging period for all commercial enterprises and Council has acted to safeguard the long-term future of City of Derry Airport and the employment it supports through initiating robust targets for growth and cost reductions. We will continue to work with the Unions to ensure this period of change can be managed with the necessary support for all employees.”

Ends

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