Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

For clarity, we are not ruling out the potential separation of Cork Airport and its also becoming an independent airport. What we are doing now is dissolving the Cork Airport Authority plc as it stands but retaining the provision to re-establish it should the conditions for re-establishment of it as an independent entity be right. Currently, the conditions are not right because of the large debt associated with the new terminal at that airport. While Cork Airport is generating an operating profit now, it iis not sufficient to pay down that debt. The debt will have to be paid down over time from profits made in Dublin and, perhaps, overseas. When it has been sufficiently paid down it may then be possible under this legislation to re-establish the company and then separate the airport.

The new management team in Cork is putting huge efforts into the development of new routes, particularly to the Nordic countries and Northern Germany and Northern Spain where currently there are no routes in operation. While it operates 50 other connections to various parts of Europe, it has none in those areas. The team is keen to provide a transatlantic service, if possible, and a Dublin connector service if they can get airline support for it. Currently, the airport manager reports directly to the CEO of the ARI. Previously, management at the airport had to plug into the middle management system in DAA, which meant HR in Cork reported to HR in Dublin and security in Cork reported to security in Dublin. This no longer happens. In practical terms, the airport now operates much more independently than in the past in that it now runs its own show and the manager now reports directly to the CEO. In addition, the Airport Development Council has been established. This comprises all of the stakeholders in the Cork region, including Cork Chamber of Commerce, Fáilte, union interests and so on who are being brought together to help drive the airport and make it more successful.

What is being abolished is effectively a shadow company - in other words, a company with a board but no assets and no real power and an extra step of management that was not necessary. In terms of what is happening on the ground, in reality Cork Airport is becoming much more independent than it was in the past. We are abolishing the shell entity. Even the directors of the board were uncomfortable with being members of a board that did not own or have any power over the airport. We are also in this legislation retaining the provision to re-establish the airport when the conditions are right.