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DAA Dublin Airport Authority plc Annual Report 2008 daa pag 1-44:Layout 2 06-04-09 16:06 Pagina 1 2008 Dublin Airport Authority plc Annual Report and Financial Statements daa pag 1-44:Layout 2 06-04-09 16:06 Pagina 2 daa pag 1-44:Layout 2 06-04-09 16:06 Pagina 3 Dublin Airport Authority plc Annual Report and Financial Statements 2008 3 Contents 4 Board of Directors 7 Chairman’s Statement 13 Chief Executive’s Review 23 2008 Financial Review 45 Directors’ Report and Consolidated Financial Statements 2008 47 Report of the directors 52 Statement of directors’ responsibilities 53 Independent auditor’s report 54 Statement of accounting policies 57 Group profit and loss account 58 Statement of total recognised gains and losses 58 Reconciliation of movement in shareholders’ funds 59 Group balance sheet 60 Company balance sheet 61 Group cash flow statement 62 Notes on and forming part of the financial statements 87 Five year summaries 90 DAA Group Structure and Management 91 Aeronautical Information 92 General Business Information Dublin Airport Authority plc Annual Report and Financial Statements 2008 Chief Executive’s Review continued 4 Board of Directors Dublin Airport Authority plc Peter Barrett Declan Collier Bill Cullen Peter has been Chief Executive Officer of RBS Aviation Declan Collier joined the Dublin Airport Authority as Chief Bill Cullen is Chairman of Glencullen Holdings Limited. A Capital since 2004 and Head of Asset Finance for Executive in April 2005. Prior to his appointment, Declan successful author, he is also President of the Irish Youth RBS Global Markets since 2008. RBS Aviation Capital worked all his professional career with ExxonMobil, where Foundation, where he has been the principal driver of is the aircraft leasing and financing business of RBS he held various senior management positions in Ireland successful fundraising campaigns for youth projects Group plc and is headquartered in Dublin. He held various and the UK, including from 2000 to 2002 as Chairman and throughout Ireland. management positions in KBC Bank’s Irish operation lead Country Manager, Esso Ireland Ltd. Declan is a before joining RBS Aviation Capital in 2001 as Chief member of the World and European Boards of Airports Operating Officer. Council International. Marion Keating Brian Lynch Mary McCabe Marion Keating was appointed to the Board in March Brian Lynch was appointed to the Board in March 2005 Mary McCabe was appointed to the Board in December 2005 under the Worker Participation (State Enterprises) under the Worker Participation (State Enterprises) Acts, 2008 under the Worker Participation (State Enterprises) Acts, 1977 to 2001. She joined the company in 1976 and 1977 to 2001 . He has worked at Dublin Airport for the Acts, 1977 to 2001. Mary joined the company in 1998 over the past 32 years has worked in the Human past 22 years and has been manager of the Cleaning and works in the Cleaning Department. Since 2007 Resources, Corporate Marketing and Retail Marketing Section for the past 12 years. He is a member of SIPTU Mary has held the position of Vice President of SIPTU’s Departments. Since 1994 she has managed the and has represented the Cleaning Section at Local and Civil Aviation Branch and for over eight years has repre- company’s Employee Assistance Programme, which Branch level for many years. At present he is the sented the Cleaning Department at local and branch level. provides information, advice, counselling and referral Chairperson of the DAA section of the Professiona l & service to Dublin Airport staff. Managerial Branch. Dublin Airport Authority plc Annual Report and Financial Statements 2008 Chief Executive’s Review continued 5 Gary McGann, Chairman Gary McGann held various senior executive positions in industry, including LM Ericsson, Gilbeys of Ireland and Grand Metropolitan Finance, prior to joining Aer Lingus as Group Chief Executive in 1994. In 1998, he joined the Smurfit Group as Chief Financial Officer and was appointed President and Chief Operations Officer the following year. Elected to the Board of Smurfit Group in 2000, he was appointed Chief Executive Officer in 2002. During 2005 he oversaw the successful merger of the Smurfit and Kappa Groups to create the Smurfit Kappa Group, of which he remains Group Chief Executive. Gary is a former President of IBEC. Des Cummins Mary Davis Sir Michael Hodgkinson Des Cummins is Chairman of the Cummins Group of Mary Davis is CEO, Special Olympics Ireland and Former Sir Michael Hodgkinson joined the British Airport Authority Companies and a member of the national executive of Chief Executive of the World Special Olympic Games held (BAA) in 1992 as Group Airport Director, having held senior IBEC’s Small Firms Association. He was appointed to the in Ireland in 2003. Mary was appointed by President management positions in the motor and food industries Company Law Reform Group, the National Sustainable McAleese as a Member of the Council of State in 2004. in Britain and Europe. During his twelve years at BAA, Development Partnership and the Small Business Task She chairs the Advisory Group of the Taskforce on Active includ ing from 1999 to 2003 as Chief Executive, he had Force. He has served on the Board of Repak and is Citizenship, established by the Taoiseach. responsibility for expansion planning at BAA’s airports currently a member of the Small Business Forum and the including Heathrow and Stansted. He is a member of the EPA National Committee. UK’s Commission for Integrated Transport, the UK Airports Advisory Council and the Transport for London Committee. Barry Nevin Marie O’Connor Anthony Spollen Barry Nevin was appointed to the Board in March 2005 Marie O’Connor has been an audit partner with Anthony Spollen is an international consultant and under the Worker Participation (State Enterprises) Acts, PricewaterhouseCoopers since 1986. As a partner in the advisor on internal audit issues and standards and has 1977 to 2001. Barry joined the company in 1990 and firm’s Investment Management Practice, her most advised the European Union Economic and Social works in the Airport Police / Fire Service. He is a recent focus has been on advising international Committee, amongst others, on financial regulation member of the National Executive of SIPTU, the Irish companies developing operations in Dublin’s matters. During his previous career at AIB, a major Irish Congress of Trade Unions Worker Directors Group and International Financial Services Centre. Marie is bank, he was Financial Controller of Allied Irish Dublin Airport Authority Group of Unions. currently a member of the Irish Chapter of the Irish US Investment Bank for 17 years and subsequently Head of Council for Commerce and Industry. Group Internal Audit at AIB itself for five years. daa pag 1-44:Layout 2 06-04-09 16:06 Pagina 6 Dublin Airport Authority plc Annual Report and Financial Statements 2008 Chief Executive’s Review continued 6 daa pag 1-44:Layout 2 06-04-09 16:06 Pagina 7 Dublin Airport Authority plc Annual Report and Financial Statements 2008 Chief Executive’s Review continued 7 Chairman’s Statement Gary McGann In reviewing the year 2008, I would like at The DAA’s statutory commercial require- the outset of this, my last Chairman’s report, ment is predicated on the fact that the Group, to restate that I submitted my resignation as while owned by the taxpayer, receives no Chairman of the Dublin Airport Authority financial support from the Exchequer and must (DAA) to the Minister for Transport, Noel meet all its operational and capital funding Dempsey, TD, on February 24, 2009 and will requirements from a combination of airport step down from that role on March 12, charges, commercial revenues and borrowings. following approval by the Board of the 2008 The combination of these developmental financial report and accounts. and commercial objectives has underpinned the I do not intend to again state the reasons DAA’s strategic approach to, and actions for my decision, which were carried in a media regarding, the management of its various assets statement on February 24. I would, however, and business units. It has also informed the like to take this opportunity to outline briefly Company’s relationship with all key stake- the progress that, in my view, has been holders, including the Government as share- achieved by the DAA since its formal holder, the Commission for Aviation Regulation, establishment in October 2004 and some of the Cork and Shannon Airport Authorities, the the challenges it continues to face. Irish Aviation Authority, the airline customers, In doing so, it is worth recalling the mandate the other service providers at the airports and given by the Government to the new Board of above all, the travelling public. the DAA at the time of its establishment. Therefore, in the case of Cork Airport, the In essence, the Board was directed to Board of the DAA determined that it would manage, operate and develop the Company’s complete the major airport development airports at Dublin, Shannon and Cork, while programme, which it had inherited, as continuing to operate them in a fully commer- expeditiously and cost-effectively as possible. cial manner. It was directed specifically to It was also concerned, while working with the urgently address the capacity deficiencies and Cork Airport Authority, to ensure the potential consequent service issues that were evident for separation of Cork Airport took account of at Dublin Airport. the investment made by the DAA in Cork The Board was also directed to work closely being remunerated appropriately. with the boards of the newly-established In the case of Shannon Airport, the DAA Shannon and Cork Airport Authorities to seek supported Shannon Airport Authority’s to effect separation of the three airports actions to stimulate new traffic and services as fully independent, commercial entities, as to Europe and thereby mitigate the inevitable mandated by the State Airports’ Act, 2004.