Business case for Waterford Airport runway extension is ‘fragile’ as redevelopment costs rise to €27m
"Build it and they will come", said Green Party Cllr Jody Power in respect of Waterford Airport's proposed runway extension
Waterford Airport’s runway extension and redevelopment has now risen to at least €27m while the business case supporting its full re-opening to commercial flights has been described as ‘fragile’ by Waterford County Council’s CEO Michael Walsh.
No commercial flights have left the airport since 2016, and the airport is currently making a loss of €300,000 per year. All 32 Waterford Councillors gathered at City Hall this week to hear of the long-awaited project which could transform the south east’s connectivity.
A business analysis by consultants Grant Thornton predicted that the airport would have to exceed 300,000 passengers per year to operate at a profit, a number almost twice exceeding that when the airport was at its most profitable. The airport requires a runway extension to accommodate larger jet aircraft containing up to 150 passengers.
The runway would need to be at least 2km long and 45m wide, but is currently 1,400m long and 30m wide. The meeting heard details of an arrangement whereby Waterford City and County Council could transfer lands owned by the local authority to the airport company and a proposed contribution of €2.2m from Waterford Council towards the project.
However, there are “significant risks” in achieving a return on investment, said CEO Michael Walsh.
“At one level, I'd prefer if we weren't involved with the airport, because it brings with it responsibilities, and otherwise, that we have very little control over, and very little knowledge of,” he said at Tuesday’s special meeting.
“The reality is that government decision is probably fragile,” he added, referring to a Government announcement last December.
A consortium of the billionaire Comer brothers and the Bolster Group announced a "game-changing” €30 million investment in Waterford Airport, to deliver an extended runway capable of catering for international flights. Part of the package was due to come from a process involving central Government and local authorities.
Sinn Féin Cllr Jim Griffin and Green Party Cllr Jody are both on the Board of Directors of Waterford Airport.
“It is fragile,” Cllr Griffin told Damien Tiernan on WLR Radio. “We went everywhere and anywhere we could to try and get investors. We are happy with the investors we have now. I think what we have on the cards is good for Waterford, it’s good for the south east, and I think the Government should really stand behind us now with this proposal.”
Councillor Griffin said that he could agree “in principle” with “99pc” of what Mr Walsh said at the meeting. Cllr Griffin said they are confident that they have prepared the business case for the airport with due diligence. Other regional airports in Ireland, such as Knock, receive subsidies from the Government to the amounts of €150,000 per year, he said.
“We don’t have those subsidies coming into Waterford at the moment because we’re not operating full commercial and full destination flights. We have put that into the business proposal.
“We are like anybody else, any other county in the country, we are pleading with the Government to look on Waterford, to give this investment for us to allow it to make it happen. We are confident that we can make it happen,” added Councillor Griffin.
Green Party Councillor Jody Power said Mr Walsh was comparing the airport to similar sized airports such as Knock, Farranfore, Newquay in Cornwall, Bristol and Southampton.
“We have no commercial flights here at the moment,” said Cllr Power. “We only have the Search and Rescue helicopters, and some private planes that come in for the big tech and pharma companies that we have here regionally, and of course we have the Cork Flying School here as well.”
It’s expected that a fully re-opened Waterford airport would be loss making for the first three years or so, before turning a profit. “After that, we’d expect to have about 300,000. Kerry for instance, had 400,000 last year, and they have made a profit,” said Cllr Power, referring to passenger numbers.
Councillor Power said he is confident of the business case. “I believe that when we build it and it’s operational, and when the runway is fit for purpose to take jet aircraft of 150 passengers plus, then it’s viable. Build it and they will come.” The south east’s infrastructure needs to improve so the economy can develop, added Cllr Power.
