Collier to leave DAA to take up London City Airport post

DUBLIN AIRPORT Authority chief executive Declan Collier has decided to leave the State-owned company to take up a role running…

DUBLIN AIRPORT Authority chief executive Declan Collier has decided to leave the State-owned company to take up a role running London City Airport.

Mr Collier’s contract with the DAA runs until April next, although he could leave before that date if a successor has been secured before that time.

In a statement yesterday, Mr Collier said: “Despite the current difficult economic environment, I know that by delivering the facilities required for future growth and by rigorously managing its costs, DAA has a bright future ahead and I wish it every success.”

Mr Collier’s announcement came as a surprise to most aviation observers here. It is understood that he had been in negotiations with the Department of Transport about renewing his contract, albeit on a salary below the €308,500 he earned in 2010.

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In June, Mr Collier hit the headlines after it was revealed that he had been awarded a performance-related bonus of €106,100 by the board of the DAA for 2010.

His total remuneration rose by 7.8 per cent last year to €612,500. This made him one of the best-paid commercial semi-State bosses the Republic, causing controversy in political circles. After a brief standoff between the DAA and Minister for Transport Leo Varadkar, Mr Collier agreed to waive his bonus payment.

Mr Varadkar said yesterday he was “sorry” to see Mr Collier leave his post at the DAA.

“I would like to extend my best wishes to him for his term at London City Airport, and to thank him for his contribution at the DAA,” he added.

DAA board member Peter Barrett, who himself is due to step down from the company shortly, wished Mr Collier well.

“We are sorry to see him go as the company has been transformed under his stewardship over the past seven years,” Mr Barrett said on behalf of the board.

Mr Varadkar has a number of senior positions to fill at the DAA. Former Greencore boss David Dilger stepped down as chairman of the board earlier this year. This position has still to be filled.

The department yesterday said a new chairman would be announced “shortly”. A number of non-executive director positions on the board are also to be filled.

Mr Collier joined the DAA as chief executive in April 2005. He had previously spent his entire professional career with energy group ExxonMobil. This included a stint as chairman and lead country manager of Esso Ireland from 2000 to 2002.

During his tenure with the DAA, new terminals were built at Dublin and Cork airports and passenger traffic boomed. But passenger numbers have collapsed in recent years due to the recession.

London City Airport, which is owned by Global Infrastructure Partners and Highstar Capital, is the smallest of those serving the British capital. Last year, it handled 2.8 million passengers, the same number as in 2009.

By contrast, Dublin, Cork and Shannon airports, which were all under Mr Collier’s control, had more than 22 million passengers in 2010.

London City Airport’s biggest airline customer is Dublin-based CityJet, which is owned by Air France. The airport was once owned by Irish financier Dermot Desmond.

Dublin and London Airports: How they compare

Passengers

London City: 2.8 million

Dublin: 18.4 million (22.6 million if Shannon and Cork included)

Destinations

London City: 37

Dublin: 177

Turnover

London City: £75.2 million (€88m)

DAA: €558 million

Employees

London City: 417

DAA: 2,971

Pretax profit / loss

London City: loss of £5.6 million (€6.6 million)

DAA: profit of €52 million

Chief executive salary:

London City (Richard Gooding): £406,000 (€475,000)

DAA (Declan Collier): €612,500

Staff payroll:

London City: £14.8 million (€17.3m)

DAA: €156 million

All 2010 figures