Cork Airport

Munster’s Favourite Airport

International gateway to the south of Ireland and the Wild Atlantic Way

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Economic Impact & Key Facts About Cork Airport

Competitive Landscape

Connectivity & Routes

Returning to Growth

Questions

Index

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Economic Impact & Key Facts About Cork Airport

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Total:

1,920 Direct Jobs

1,650 FTEs

€71m Wages

€134m GVA

Direct Economic Impact Of Cork Airport

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Source:

Economic Impact Study 2015

DIRECT INDIRECT INDUCED CATALYTIC

Jobs: 1,920 Jobs: 1,170 Jobs: 1,420

GDP: € 134 M GDP: € 82 M GDP: € 90 M

TOTAL Jobs: 10,710

GDP: € 727 M

At airport and airport Supplying and Employees spending Air service facilitating:

related businesses supporting businesses in the economy tourism, trade,

investment, productivity

Jobs: 6,200

GDP: € 421 M

Total Economic Impact Of Cork Airport

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Total Economic Impact

equates to 2.2 % of the

South-West economy

Source:

Economic Impact Study 2015

Second Largest Airport in the State

• 30% more Pax than the State’s third (SNN)

Open 24/7 364

Terminal Capacity up to 4 million

• One of the most modern terminals in Europe

Runway Length – 2.1km

• Ideal for UK and Europe but also Boeing 757

(Aer Lingus fleet) which can reach East

Coast USA destinations e.g. New York.

More routes and destinations than any other

airport in the state outside of Dublin.

• 42 Scheduled routes at Cork Airport

versus 29 at Shannon Airport in 2015.

Key Facts

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Ranked best in the world by both business and

leisure passengers for customer satisfaction in

2013 among 61 peer airports.

• (ACI Regional Survey)

Awarded best in Ireland for aviation customer

service at inaugural Irish aviation awards 2014

• (IAA)

Winner of the Sustainable Energy Awards 2014

• (SEAI Public Sector)

New Infrastructure (2005 / 2006)

• €200m investment in a new terminal building

plus multistorey car park, fire station, dual

carriageway roads, maintenance base,

central utilities building, water, attenuation,

etc.

Key Facts

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Airport charges at €8.60 per Pax 6% cheaper than European Peers and 17%

cheaper than Dublin

New routes are free in year 1, €1.70

in year 2, €3.40 in year 3, building to

€8.60 in year 6 Marketing support also available from Cork

Airport for new routes

Cork Airport receives no grant aid or

subvention from central government

Key Facts

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Competitive Landscape

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Traffic At All Major Irish Airports Down From Peak

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37%

18% 5%

16%

24%

London

UKP

Eastern Europe

Western Europe

Southern Europe

2.2m

2014 Year End – By Region

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Scheduled Routes Cork Airport Shannon Airport

Aer Lingus 14 6

Aer Lingus Regional 8 -

Ryanair 19 19

Czech Airlines 1 -

Delta Airlines - 1

United - 2

US Airways - 1

Total No. of Routes 42 29

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Cork V Shannon: Expected Routes 2015

Returning to Growth

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Our Vision

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New Structure: Cork Business Unit established as one of four autonomous business units within the daa.

Separate P&L, with accountability and local decision making

Local Management Team established, deepened & recruited

Group services available to support autonomous business unit

Board & CEO heavily engaged with three Cork representatives on daa board and special board subcommittee formed.

Cork Airport Development Council formed for stakeholder engagement

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Cork Airport Autonomous Business Within daa

People Galvanise Team around shared goals and

values

Finance Provide strong

Foundation

for recovery

Stakeholder Drive Regional economic growth and connectivity

Customer Grow overall business for airlines and partners and

increases choice for passengers

Traffic Growth Central To Business Strategy

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35 40

29 31 38

65 60

71 69 62

2010

%

Irish

Non Irish

2012

%

2011

%

Cork Airport is predominantly an outbound airport and the

region is significantly underperforming in terms of direct

inbound tourism.

2013

%

2014

%

First Opportunity For Growth – Grow Inbound Tourism

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OPPORTUNITY

+130k above GDP

% of traffic from each county travelling ex Cork Airport

29% 37%

21%

4%

8%

74%

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Second Opportunity For Growth – Grow Hinterland

Appointed dedicated

specialist Head of Aviation

Marketing from Barcelona

Airport

Leveraging all daa group

resources. Cork is on the

agenda at every Airline meeting

Participating at all key

international aviation industry

events e.g. Routes/Slots

etc.

Engaging with Tourism Ireland around specific

marketing support for

priority markets

Meeting with target airlines

(20+) and pitching

business cases for traffic growth and new routes

All possible

opportunities

being

pursued

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What Have We Done Todate ?

Engaging Over 20

Airlines

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Aviation Marketing Strategy

Rebalance in National Aviation Policy (NAP) and National Tourism

Policy (NTP) with specific stimulus for Cork Airport as an engine for

regional growth.

UK Government, faced with similar challenges, has launched a

Route Connectivity Fund to stimulate growth in airports below 5m

targeted at growing inbound tourism and enhancing business

connectivity.

Integrated regional approach and structures to grow inbound

tourism with specific growth targets by market.

Restoration of Cork-Dublin route, with potential as a transatlantic

feeder, is only feasible with a PSO or similar subvention.

Joined up region of stakeholders united behind Cork Airport

including politicians, media, business groups and passengers.

What Else Could Be Done At A Macro Level?

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Cork Airport is top class aviation facility.

Award winning in customer service and efficiency.

The south of Ireland market is over served in airport capacity (4 local plus

Dublin) and Cork Airport is competing for its market share.

Financial terms of Shannon separation have skewed the market and

enabled the transfer of long standing Cork routes to Shannon.

Cork Airport has reduced its cost base and is doing everything to grow

traffic and routes.

Outlook for 2015 remains challenging and our sole focus is to return to

passenger growth in 2016 and consolidate our position as the State’s

second largest and Munster’s favourite airport.

Cork Airport Management team and daa is absolutely committed to

returning Cork Airport to growth.

Conclusion

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