Cork Airport has announced plans for a wide-ranging initiative designed to reduce operating costs, reverse significant ongoing losses and position the Airport for sustainable future growth.
The initiative, which was announced by Cork Airport Director, Niall MacCarthy and his management team to employees today (October 5), follows recommendations by consultants, Ernst & Young, for delivery of a sustainable business operating model at Cork Airport, and includes the following principal measures:
*A voluntary severance programme to secure a minimum of 32 redundancies
*A full review of existing structures, rosters and staffing levels
*The alignment of remuneration and work structures with aviation industry best practices
*Renewed focus on all opportunities to reduce non payroll costs
*Renewed focus on all opportunities to enhance revenues without impacting on the Airport’s competitiveness
“As has been the case with most businesses in Ireland, Cork Airport has suffered the impact of the ongoing economic downturn and, in our case, the consequent significant reduction in passenger numbers over the past three years,” said Cork Airport Director, Niall MacCarthy.
“Unfortunately, Cork Airport’s operating costs have not fallen in line with the decline in aviation traffic and are now also significantly higher than many of its peer airports. The Airport’s relatively high operating costs per passenger have contributed to cumulative cash losses excluding depreciation of €12 million between 2010 and 2012. These losses will be replicated over the next three years if no action is taken.
“Clearly this situation is unsustainable and we must now work with our employees to reverse these losses. The focus at Cork Airport is very much on growing the business, expanding the route network and increasing passenger numbers within a self-sustaining and competitive business model. We will also be seeking the support of our customers and stakeholders in ensuring Cork Airport can compete from a sustainable financial base for the growth opportunities that lie ahead,” he added.
The terms of the voluntary severance package will be communicated to employees within the next week and management at Cork Airport plans to enter detailed discussions with trade union representatives as quickly as possible.