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City of Derry Airport begins cost-cutting
06.01.09
MANAGEMENT at Derry
City Airport yesterday began talks with employees
and unions over urgent cost-cutting measures to
safeguard the future of the regional terminal. The
discussions, to agree an initial £600,000 in
savings, were prompted by worsening financial
pressures including uncertainty over local authority
grants.
Derry City Council chief executive, Valerie Watts
said Derry City Council faced a "unique challenge"
in 2009 and 2010. She said the Council was financing
a regional airport influenced "more by the changing
economic and commercial environment than everyday
public services". |
"Derry City Council
must act now to consolidate services at City of
Derry Airport to safeguard future growth and the
employment the airport supports.
"This will be achieved through a savings in
operational costs along with a business plan that
delivers commercial and passenger growth," |
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she said.
City of Derry Airport's operational deficit has
risen from £1.7million to over £4million in recent
years. The airport generates an estimated £40million
annually to the local economy.
It is proposed to save around £600,000 at City of
Derry Airport set against an overall proposed
savings plan in excess of £1.6million for Derry City
Council. Council members have already made
representation to Minister Dodds for immediate
action to ease the financial pressures facing Derry
City Council this year. Ms Watts said it was
imperative City of Derry Airport remained "an
affordable and successful regional facility".
"This is a challenging period for all commercial
enterprises and Council has acted to safeguard the
long-term future of City of Derry Airport and the
employment it supports through initiating robust
targets for growth and cost reductions.
"We will continue to work with the unions to ensure
this period of change can be managed with the
necessary support for all employees," she said. |
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