BELFAST BRIEFING:Two Northern Ireland airports could shortly be up for sale - and it's not exactly a seller's market
THE ANNUAL rush to escape Northern Ireland at this time of year is well and truly under way according to the latest airport statistics. Belfast International Airport (BIA) estimates that a record 1.2 million travellers will pass through its doors during July and August.
More than 400,000 people are expected to use the airport over the Twelfth of July fortnight - traditionally one of the busiest times of the year for Northern Ireland's three airports.
The North, with a population of just over 1.7 million people, would appear to be spoiled for choice when it comes to airports.
Belfast International, with its ever growing array of charter and scheduled flights, attracts the lion's share of the travelling public.
Last year was its busiest on record - more than 5.2 million people chose to arrive and depart from Northern Ireland via BIA.
The airport has seen its passenger figures boosted by an increase in travellers from Border counties who are now choosing BIA over Dublin Airport.
Management at BIA say the strength of the euro and the relative ease of using the Belfast airport compared to Dublin are helping to attract a whole new generation of travellers.
Its chief rival George Best Belfast City Airport - which is currently up for sale with a price tag of more than £100 million (€125 million) - is also enjoying brisk business on its key routes.
The city airport primarily serves domestic routes between Northern Ireland and the UK. But it is keen to add to its European destinations, particularly since Flybe decided to pull its direct service between Belfast City and Paris last month.
George Best Belfast City Airport has enjoyed rapid growth in its passenger numbers in recent years. In 2007 they hit an all time high of more than 2.1 million people. Belfast City Airport is predicting the figures will be even better this year thanks to Ryanair's decision to establish its 23rd European base at the airport last October. Both BIA and Belfast City Airport are now operated by Spanish-based infrastructure groups. BIA is owned by TBI, a company which is controlled by Abertis and Aena Internacional, while Belfast City Airport is owned by Ferrovial.
The question of who owns the two most important gateways into the North is a pertinent one given what is currently happening at Northern Ireland's third airport, the City of Derry Airport.
Abertis, Aena Internacional and Ferrovial have poured millions of pounds in new investment into their operations in Northern Ireland. The City of Derry Airport, which is owned by Derry City Council, has in contrast cost Northern Ireland taxpayers millions.
The airport handled just over 420,000 passengers last year but it is estimated that it may be sustaining losses of between £1 million and £2 million (€1.25 million to €2.5 million) a year. Some sources suggest its losses could now be nearly double its annual revenue.
Derry City Airport is currently in the process of receiving substantial financial assistance from both the Irish and British governments to improve its infrastructure. In total the Irish and British governments will providing £14 million (€17.5 million) of funding to Derry City Airport.
But what will they actually get for their money and does Northern Ireland really need a publicly owned airport? The Irish Government has invested in Derry City Airport because it believes it is of "strategic importance" to the whole northwest of the island.
The Northern Ireland Executive is supporting the infrastructure investment programme because it also recognises that the airport plays and could play an even more important economic role in the area.
But is the City of Derry Airport and Northern Ireland best served by letting the control of the airport remain in the hands of Derry City Council?
Tonight, for example, the airport will be forced to close at midnight and not reopen until Thursday because of a strike by UK public service workers. The strike has nothing to do with Derry City Council but it is powerless to maintain services.
The North-South Ministerial Council recently revealed that Derry City Council has committed to the immediate incorporation of the City of Derry Airport into a company.
It will initially be wholly owned by the council but there is a provision for its sale, either by sale of equity of the company outright or by sale of the company entirely - but with the council retaining control of the airport land through a long-term lease.
That means two of the North's airports could shortly be up for sale in a market which does not exactly favour the seller at the moment. Belfast City Airport has been on the market for nearly two and a half months - there has been some interest expressed but no firm bids.
Derry City Council will need to have its route planned out well in advance if it intends to pit the City of Derry Airport on the open market against Belfast City Airport. There could be turbulence ahead for two of the North's airports - the question now is which one will enjoy a soft landing?
