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Aer Rianta may float international subsidiary

AER Rianta International, which manages the Irish airports' authority's overseas operations, may be floated as part of moves …

By BARRY O'KEEFFE
Fri Jul 04 1997 - 01:00

AER Rianta International, which manages the Irish airports' authority's overseas operations, may be floated as part of moves to raise revenue for expanding overseas operations. The company which already has a share in Birmingham International airport, is to bid for airports in Europe and elsewhere as they come on to the market.

Aer Rianta chief executive, Mr Derek Keogh said a team of consultants would be appointed shortly to examine options for Aer Rianta International (ARI).

Mr Keogh said options to raise finance for ARI could include bringing in a strategic partner, pension funds, or even flotation.

Aer Rianta would use the cash for its overseas operations. The company has also pledged to fight hard to retain duty free, which is a major contributor to its profits. Mr Keogh, who retires at the end of this year, said intra-duty free sales could be worth up to Pounds 40 million net to the group by the year 2000.

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Mr Keogh said the company was also examining how best to utilise its three airports in Ireland, Dublin, Cork and Shannon. He said negotiations with developers regarding building a business park at Cork airport were at an advanced stage.

The company is currently under-going a major capital investment programme, which will see up to Pounds 250 million spent upgrading facilities at the airports. Mr Keogh said, in line with other organisations' predictions, tourism would continue to grow. He said even if there was a downturn, Ireland would not be too badly affected as more than half the traffic passing through the airports was friends and relatives visiting one another.

Mr Keogh became chief executive of Aer Rianta in April 1988. He joined the group in 1969 from the then Department of Transport and Power and has held various posts in the company including Dublin Airport general manager and director of administration and personnel

Mr Keogh said he would not take up another full-time post. A keen golfer, who has had little time to practice since becoming chief executive, he hopes to reduce his current 17 handicap to its former nine.