Airport public private model aims to reduce rate bill

The Mayor made the comments after council representatives were recognised at the Northern Ireland Local Government Association (NILGA) awards ceremony for its approach to City of Derry Airport.

The award acknowledged Councillors and the initiative taken to maximize the potential of the airport through an innovative public and private sector partnership.

Derry City Council’s entry had followed the progress of governance reform at City of Derry Airport and the series of actions put in place.

This included the formation of CODA Operations Ltd., the new Board arrangements and the successful market test that brought together the partnership with Parsons Brinckerhoff, a Balfour Beatty Company, through a management services agreement.

Speaking on behalf of the Airport Committee Members, Mayor Devenney said: “The benefits of the approach are the strength of the commercial partnership that is in place, global contacts, improved purchasing ability and specialist aviation knowledge and expertise.

“This brings an experienced partnership together with an ultimate goal of achieving a positive financial return for local ratepayers through a reduced subsidy while continuing to improve air access for the region and safeguarding of employment.”

Since incorporation in April 2010, CODA Operations Limited is on target to reduce the actual operational costs by £800,000, despite the very challenging economic climate.

The operating cost per passenger, using the airport has reduced over the last twelve months from nearly £9 to under £6. The capital investment in the airport during 2009-2010 was £5.9m.

September 2011 statistics from CAA show that the airport continues in growth as a regional hub with the rolling twelve month passenger numbers showing a 17.44 per cent increase and an increase in market share to 5.67 per cent.