Derry City Council confirms private sector partner for Airport

Mayor, Cllr Colum Eastwood said, "The prospective appointment of this global company through a management contract will build upon the strong partnership already in place for the Airport and bring additional experience and commercial resources for the benefit of the City and region. It is our objective that City of Derry Airport performs as a commercially viable entity; continues to provide economic benefit to the North West; improves air access to this region; and remains compliant with all of its regulatory and safety requirements".

In October 2009, Derry City Council through a Market Test exercise, actively sought expressions of interest from commercial partners for investment in the airport. The procurement exercise was conducted through the official European Journal and clearly sets out the terms and conditions under which Council would proceed with commercial partnerships.

At the time, Council indicated it would consider all options for participation with a private party including, but not limited to an operating contract, a partial equity share and an outright acquisition. Partners had to demonstrate a minimum economic and financial operation, experience in developing or investing in airports within the last ten years with at least 1,000,000 departing passengers per annum.

Chairperson of the Board of CODA Operations Ltd, Roy Devine said: "We are very clear that before entering this contract with a Balfour Beatty Group Company that it must meet our shareholder's (Derry City Council's) objectives. We are delighted that in the course of our discussions CODA (Operations) Ltd and the preferred bidder have developed a shared business plan that, when delivered, will reduce Derry City Council's subvention of the airport over the shortest period possible.

" The City of Derry Airport is an excellent regional airport with a committed and dedicated management team and workforce. The Balfour Beatty Group Company has substantial experience in the operation of airports and I believe that a management contract will help CODA (Operations) Ltd to maintain and develop new routes, retain the airport as a regional asset, improve the commercial returns from the Airport and reduce the annual subvention from ratepayers. This would happen at a much greater rate than would be the case were CODA (Operations) Ltd to go forward without a partner of this quality and pedigree. I have every confidence and expectation that this will be a successful partnership".

The management contract will enable access to global commercial contacts, improved purchasing ability and specialist aviation knowledge. Clive Coleman, speaking on behalf of Regional City Airports, Balfour Beatty's specialist airport investment and development group, said:

"We are delighted by the opportunity to enter into a management contract with the City of Derry and build on the success of our existing operation and management contracts at Exeter and Blackpool International Airports which we also own. We look forward to developing a first-class service to the City of Derry to meet the aspirations of all of stakeholders."

Derry City Council will remain the only shareholder in Airport Company and will account annually for the performance of City of Derry Airport.

Alderman Maurice Devenny, Chairman of City of Derry Airport Committee said: "This is an important step forward and we look forward to a prosperous partnership that makes the facility an affordable and successful regional asset".