New runway for Dublin airport, DAA is looking at commitment financing
It controls Cork Airport as well, and is currently examining plans for a second parallel runway at the capital as passenger numbers soar. Dublin Airport handled over 25 million passengers last year, a record for the facility and 15pc more than in 2014, because of that its the fastest-growing airport in Europe at the moment.
That current permission, on that Existing planning approval for a new runway expires next year. The DAA is currently appraising whether or not it will depending on, or submit a new planing application. Under planning rules, such an application would be made directly to An Bord Pleanala under the Planning and Development (Strategic Infrastructure) Act.
“We’re still working our way through that,” Mr Toland told the Irish Independent. “What’s very clear is the need, and the opportunity is greater. We’re growing very quickly. We’re working through our different options.”
He said the chance exists to build Dublin Airport out as a “real key European hub”.
It’s been conjectured that the new runway could cost up to €250m to build.
“The cost of the new Dublin runway is an absolute fraction of any of the other runway projects that are being talked about elsewhere in western Europe, and the UK,” said Mr Toland.
The DAA’s financing unit, DAA Finance, currently has one bond in issue, which matures in 2018. The €550m, 10-year Eurobond (it was originally €600m) was issued in 2008 with a coupon of 6.5872pc. It was used to help finance the construction of Terminal 2. The DAA had previously accessed the bond market in 2001, with a €250m issue.
“We’re considering all those finance options at the moment on the back of increased and improved performance, not only in Dublin, but right across the group,” said Mr Toland.
Ratings agency Standard & Poor’s upgraded the rating on the 2008 bond, and the DAA, to A- from BBB+ in November.
“We’re in a very comfortable position to explore those options and pick the right one,” the chief executive said.
The DAA could gain passenger charges to help meet the cost of a new runway.
In numbers:
€ 25m – Number of passengers who used Dublin Airport last year.
€ 250m – Estimated cost of new runway at Dublin Airport
€ 550m – Existing DAA Eurobond in issue. It matures in 2018.
Irish Independent
