Media

At its meeting on 28 November, the Board of the Irish Aviation Authority (IAA) approved a package of measures to help its airline customers weather the storm which the global aviation industry is currently facing.

The IAA is totally funded in both regulation and service provision by its airline customers. On the service provision side, airlines pay for using Irish airspace as they fly through it. As the Authority operates under a cost recovery scheme, these measures are an attempt to prevent an increase of the user charge to airlines during these difficult economic times.

The aviation industry has been at the centre of the global economic downturn. Many airlines have gone out of business in recent months while others have been forced to reduce profit forecasts and modify performance expectations. Our national airlines are anticipating major dips in earnings as well as market share in what has been a rapidly deteriorating market. Against this background, the Board of the IAA took the decision to avoid making the situation more difficult for its airline customers and has put forward a range of measures to keep its costs under control.

The key strategy underpinning the 2009 Operational and Capital Expenditure budgets is;

• recognising the exceptional economic times we are in;
• continuing major capital projects that will deliver safety, capacity and efficiencies in the future;
• increasing air traffic management staffing in 2009 to meet projected operational and project demand in the period 2010 - 2012.

The IAA is not proposing any cutbacks in either capital or staffing, but rather is taking a longer term view that takes clear account of the time it takes to deliver projects and train staff. The Board approved the following package of measures to keep staff and overhead costs under control;

1. Postpone for six months pay increases due for management and staff in 2008, for those earning above €50,000 per annum.
2. Freeze all management and staff salaries at the level of 31 December 2008, for one year.
3. The CEO has agreed to a 10% cut in salary.
4. Continue major capital projects essential for safety and capacity.
5. The remaining capital project programme has been re-evaluated €30.5 million worth of projects that don't impact on safety or operations have been cancelled.
6. Other capital programmes have been re-scheduled to save cash.
7. All staffing requirements will be re-evaluated in March 2009 having regard to traffic/economic conditions at that time.
8. A reduction in overhead expenses in all areas will be sought.
9. Additional measures will be considered if the situation deteriorates further in 2009.

Everyone, including our unions and staff, know we are in dramatically changed economic circumstances and this package of measures is required so the Authority and its airline customers will not merely survive the current crisis, but will be in a stronger position when the inevitable turnaround arrives.

Unions and staff have been informed of the measure and there will be further discussion at a meeting arranged for 11 December 2008.