logo
Review under way into DAA's international duty free and consulting operations

Review under way into DAA's international duty free and consulting operations

Irish Times08-05-2025

Dublin Airport
operator
DAA
is reviewing its international duty free and consulting operations, raising questions over the terms on which the State-owned business invests in global aviation markets.
The internal review of duty free retailer Aer Rianta International (ARI) and management consultancy arm DAA International (DAAI) comes amid uncertainty over their growth prospects after failing to land new contracts they had targeted.
Still DAA chief executive Kenny Jacobs said there were no plans to seek a buyer for either subsidiary. 'Neither ARI nor DAAI are for sale,' Mr Jacobs said in reply to questions.
ARI is considered a likely contender to bid against rival retailers for a big duty free concession at Dubai airport, one of the world's busiest, which is soon expected to come on the market.
READ MORE
The business runs duty free shops in 27 airports in 13 countries around the world. They include Montreal, Winnipeg, Québec, Edmonton and Vancouver in Canada; Bridgetown, Barbados; Larnaca and Paphos, Cyprus; Lisbon and Faro, Portugal; Bahrain; Muscat, Oman; and Riyadh, Saudi Arabia
In recent times, however, ARI failed to win contracts for new duty free concessions it sought at JFK airport in New York, Keflavik in Iceland and Belfast International Airport. Certain contracts have been renewed but ARI has lost concessions it once held in New Zealand and Delhi, India.
DAAI has big contracts in Saudi Arabia to manage the King Abdulaziz International Airport in Jeddah and the Red Sea International Airport. It came close to a deal to build an airport in Kuwait during the term of the last government but the proposal was vetoed by then transport minister, Eamon Ryan of the Greens.
The review, scheduled to conclude this summer, was notified last week to representatives of Minister for Transport
Darragh O'Brien
at DAA's annual meeting. Such meetings take place in private.
One option under consideration is whether Government approval is sought for DAA to raise external capital for ARI or DAAI under the umbrella of State ownership.
The review comes as DAA seeks swifter assessment for proposed investments from NewERA, the Government's adviser on the affairs of semi-State groups such as DAA.
The approval of Mr O'Brien and Minister for Public Expenditure Jack Chambers is required for any big DAA investment, usually after NewERA advice. Still, questions have been raised about the pace at which potential investments are scrutinised.
This is in addition to questions over the prospective investment returns required under the terms of DAA's 'shareholder expectation letter' from the Government, its controlling shareholder.
'DAA, like all commercial businesses, is always reviewing every division of the business, both domestic and international. These internal reviews are focused on how we continue to evolve and grow the business,' the company said
In reply to questions the Department of Transport said: 'The Minister and department regularly review the performance of the commercial State bodies under the department's remit, including DAA.'
It added: 'In this regard the Minister and the department have regular engagement with DAA, and NewERA provides financial and commercial advice to the Minister and department as appropriate.'

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Cupra's Terramar two-engined hybrid leaves us in two minds
Cupra's Terramar two-engined hybrid leaves us in two minds

Irish Times

timean hour ago

  • Irish Times

Cupra's Terramar two-engined hybrid leaves us in two minds

Generally speaking, after a week spent testing a car, we can come to a conclusion. That is, after all, the job. Take new car, assess new car, rate new car, rinse and repeat. When it comes to the new Cupra Terramar, however, we're still very much in two minds... It starts with a continuing difficulty for the Cupra brand. It is, by lineage, a sportier Seat , which is fine, but in the seven years since Cupra was spun off from Seat as a separate, stand-alone brand, it has become distinctly expensive and yet is still a brand without a solid, graspable identity. Clearly, it's meant to fulfil the late Ferdinand Piech's desire for the VW Group to have a sporty, desirable, 'Spanish Alfa Romeo ' within its ranks, but while Alfa has more than a century of glories and glorious failures behind it, Cupra just has some quick Seats in the back catalogue. Then again, the brand is a success. Across Europe, Cupra is doing well, taking the same basic mechanical bits and pieces that would once have been sold as a sharply-priced Seat, but which can now be repackaged into a quasi-premium machine that can be sold with a higher purchase price and therefore a chunkier profit margin. READ MORE Then again, that higher price brings with it its own problems, as we shall see ... This new Cupra Terramar is the brand's latest model, and it's effectively the replacement for the ageing Cupra Ateca. Based on the Seat Ateca, the Cupra model only ever came in 300hp turbo petrol four-wheel drive form and, to be honest, it wasn't a bundle of fun. Quick, yes, but actually, seriously good to drive? Not really. The Terramar follows the Ateca's basic recipe by being based on the same mechanical package as a contemporary Volkswagen Tiguan, but this time there's a full breadth of engines on offer, from a basic 1.5-litre 150hp turbo to this 272hp plug-in high-performance hybrid. The Terramar also gets off to a good start, with me at any rate, by being not very tall. In fact, compared with a current Tiguan, the Terramar's roof sits 100mm lower down, which is music to my SUV-hating ears. In fact, while Cupra will very definitely sell the Terramar – named after an old racetrack near Barcelona, if you're wondering – as a SUV, it's honestly closer to being a slightly taller estate. Style-wise, it falls down a bit. The lizard-like face, which is now Cupra's corporate look, leaves me rather cold and I can't help but wish that the look of the first-generation Formentor – neat grille, sharp lights – had been carried over. It also doesn't help that our test car was finished in the same metallic dark grey that every other SUV on the road is painted right now. It takes what's not an unattractive shape and smothers it in monochrome camouflage. You'll lose it in a car park, so be brave and delve into Cupra's other colour options, which bring out the shape rather better. Inside the Cupra Terramar Inside, it's fine. There is an interest L-shaped section of the centre console, covered in an indented design that looks a bit like fish scales, but which punctures the Terramar's claim to be a premium product by feeling rather cheap to the touch. On the upside, storage space is generous, and the microfibre-clad front bucket seats are very comfortable. Space is less impressive in the back, where there's not much more rear legroom than you'd find in the Cupra Leon hatchback. Equally, the boot measures just 400 litres up to the luggage cover. Now, in fairness, you can expand that significantly by picking the non-plug-in versions of the Terramar, but even so, that's not a lot of actual room. The hybrid system itself is impressive, though. With 272hp and a combined petrol+electric total of 400Nm of torque, the Terramar is convincingly rapid, even if the on-paper 0-100km/h time of 7.3 seconds doesn't seem all that impressive. There's the option of having a fake engine sound piped in through the stereo speakers, which sounds better than you'd think. Even overall efficiency isn't bad – unable to charge at home, I still managed to squeeze 6.2 litres per 100km out of the Terramar, which is considerably better than I managed in the smaller Formentor with the same hybrid system. The electric bit is good too. Against a claimed range of 118km on a full charge of its 19kWh battery, we easily managed 90km, so this really can be an electric car for much of the time. Plus, you can fast-charge it when needed, at up to 50kW, which gives you more flexibility. However, it's not perfect. There is an odd shunting sensation a times as the electric motor and the petrol engine jostle for pre-eminence, which detracts from the Terramar's refinement. The Cupra Terramar really can be an electric car for much of the time It's quite comfortable, though. Our test car came with the DCC adaptive dampers, which have a semi-secret 'ultra soft' setting that you can find if you go in and configure the individual driving mode. Thus established, the Terramar has a pleasing blend of sharp steering and yet reasonably soft suspension. It's quite good to drive, if not quite what you'd call an out-and-out driver's machine. That, perhaps, is Cupra's biggest problem. It's taking the same basic bits as every other mid-size Volkswagen Group car and trying to concoct a new recipe with them. While it's true that, in Italian cooking, tomatoes, pasta, and garlic can be combined and recombined in multiple different variations, here in Cupra's Spanish pantry the results seem less distinct. Cupra, with the Terramar, has produced a tasty dish, but one that lacks the kind of piquancy you'd expect for true distinctiveness. And then there's the price tag. Our test car, admittedly a range-topping version with optional 20-inch alloys, a brilliant Sennheiser stereo and an upgraded driver assistance pack, costs a fairly massive €63,578 all-in. That's not only a lot for a brand that, still, few people recognise, but it's also about €5,000 more than the Skoda Octavia RS Combi estate which is sharper to drive, more fun overall and more practical, and everyone knows you've bought something cool. For that matter, the same cash would put a 280hp Alfa Romeo Giulia Sprint on your driveway, and that comes with no need to explain to passersby what the brand is about. So the Terramar, impressive though it is in its overall performance, and in its laudable dedication to being lower-slung than other SUVs, still leaves us with a split decision. It's a perfectly good car, but one that just doesn't quite stick the landing. Lowdown: Cupra Terramar VZ eHybrid 272hp. Power: 1.5-litre turbo petrol engine plus 85kW e-motor developing 150hp and 250Nm of torque, powering the front wheels via a single-seed automatic transmission. CO2 emissions (annual motor tax) 10g/km (€140). Fuel consumption: 0.5-l/100km (WLTP); 6.2-l/100km (observed) Electric range: 118km (WLTP) 0-100km/h: 8.3 sec. Price: €63,578 as tested, Terramar starts from €44,100. Our rating: 3/5. Verdict: A mixed result – the Terramar has a good hybrid system and it's decent to drive, but it lacks a touch of magic.

Cost of health insurance nears €2,000
Cost of health insurance nears €2,000

Irish Times

time2 hours ago

  • Irish Times

Cost of health insurance nears €2,000

If health insurance, along with most things these days, feels like it's getting more expensive , then you're right. The cost of private health insurance has jumped to almost €2,000 per person, according to industry watchdog HIA. As Conor Pope reports, as well as a spike in prices, the figures highlight a significant slowdown in the numbers taking out cover in the first three months of the year. As the Government brings in sweeping changes to the rental market here, John McManus assesses how housing has become an issue that voters expect the State to provide in the same way as health or education, and explores the implications for financing new homes such a change has. These days it seems almost impossible to buy a home if you aren't part of a couple. But it can be done . In Money Matters Joanne Hunt outlines what you need to know about buying your home on your own. US trade tariffs will result in a major slowdown in global growth but not a recession, the World Bank has said. In its latest Global Economic Prospects report, the Washington-based institution said that heightened trade tensions and wider policy uncertainty would drive global growth down this year 'to its slowest pace since 2008 outside of outright global recessions'. Eoin Burke-Kennedy reports. READ MORE The impact of the proliferation of artificial intelligence (AI) on Ireland's energy demands is 'not going to be as steep as many people believe', Research Ireland has told an Oireachtas committee. Colin Gleeson watched the hearing. A team of four Trinity College Dublin students placed third at the Global Finals of the Boston University Susilo Business and Ethics Case Competition. The students were the first Irish team to reach the world finals in the competition. Hugh Dooley reports. How to manage your pension in these volatile times Listen | 37:00 In Commercial Property, Fiona Reddan reports that a high-spec manufacturing facility, currently owned and operated by Wyeth Nutritionals Ireland, in Askeaton, Co Limerick, is being brought to the market asking €22 million. Also in Commercial Property, Ronald Quinlan writes that Coonan Property and Savills are guiding a price of €6.55 million for a 10.92-acre site with full planning permission for the development of six industrial units in Rathcoole, Co Dublin. Ronald also reports that the first building in what is being billed as Ireland's first co-located university enterprise quarter has been launched on the site of the former Waterford Crystal factory site on Waterford City's Cork Road. Boots booked a €2.4 million impairment charge against the value of its Irish property portfolio last year as a precaution against rising sales costs and overheads, as profit growth eased significantly from the previous year. Ian Curran has the story. A mystery objector is opposing a planned new gate as part of house revamp plans by Dee and Ian Lawlor for their property at Coolbeg, Shrewsbury Road in Dublin 4. Gordon Deegan has details of the objection against the work planned for the house, which was used in scenes from the 1990s Hollywood blockbuster Far and Away starring Tom Cruise and Nicole Kidman. Retailer Marks & Spencer resumed taking some online orders for clothing lines for customers in England, Scotland and Wales on Tuesday after a 46-day hiatus following a cyberattack, but customers in Ireland will have to wait a while longer. If you'd like to read more about the issues that affect your finances try signing up to On the Money , the weekly newsletter from our personal finance team, which will be issued every Friday to Irish Times subscribers.

Government had to choose tenants over investors
Government had to choose tenants over investors

Irish Times

time2 hours ago

  • Irish Times

Government had to choose tenants over investors

After months of deliberation the Government seems to have finally settled on a rent control strategy . It is something of a dog's dinner and can best be seen as an attempt to reconcile two things that are fundamentally irreconcilable. The first is the need to reassure the increasing number of people in rented accommodation that their already sky-high rents are not going to be driven even higher by avaricious landlords capitalising on a severe housing shortage . The second is creating the conditions that will entice international institutional investors into the property market, which requires convincing them that they will be able to set and keep rents at a level where they can earn the sort of market-beating returns that would make investing in Ireland an attractive option relative to the myriad of other global opportunities. READ MORE Much of the emphasis is understandably being put on the measures intended to protect existing tenants, which include the extension of rent controls across the State. Rent increases will be subject to a limit – inflation or 2 per cent – and landlords will be severely restricted in their ability to reset rents to market levels when a tenancy ends. [ Why is the housing crisis Ireland's most enduring failure? Opens in new window ] There will, however, be a distinction drawn between small and large landlords. Those with fewer than three properties will be able to evict tenants and presumably put up rents. There is less emphasis or detail on the measures intended to encourage institutional investment. New builds will not be subject to rental caps and landlords will be able to increase rent to match inflation. The industry is understood to be disappointed. The Government will argue with some justification that it has done its best to balance various competing interests and that a compromise was inevitable. Doing nothing was not an option. The Government is right about that. But how this fudge will work in practice is anyone's guess and the potential for unintended consequences is high. One thing is for sure. Rents will go up. A combination of upward pressure from small landlords at the bottom and a pull from large institutional investors at the top will ensure that rents in the middle also rise. The details of the plan have not been published but the apparent decision to focus more on protecting tenants than encouraging investors may prove the right one. The inherent contradictions in trying to coax private capital seeking high returns into investing in a sector in which policy is to keep rents down is probably insurmountable. The most likely outcome is that the new measures will prove sufficient to swing the investment case for some projects already in the pipeline and a few more top-end developments will be built for rent than might have been otherwise. Every little helps of course The Government would appear to have resisted the entreaties of property developers and their backers as represented by lobby group Irish Institutional Property, which holds that 60 per cent of the funding needed to address the housing shortage must come from international investors. The State and the domestic banks will make up the rest, they believe. The fundamental problem with this argument is that we are approaching the limit in terms of people who can pay the sort of rent that international investors will be seeking without enduring significant financial pain, which in turn will have a detrimental knock-on effect for the economy. Most people are already paying rents in excess of what economists deem sustainable, which is between 20 and 35 per cent of net income. The average Irish person earns about €44,000 a year and the average rent is €1,600 a month or about €20,000 a year. The political pressure that has led to implementation of nationwide rent controls and other pro-tenant measures confirms that we are at the limits of what can be tolerated by society in terms of housing costs. Any international investor looking at investing in housing in Ireland as a long-term bet that will return more than 10 per cent a year would really want to get their head around that before committing. The ones that get in early might do okay, but the risk premium they will want is only going to push up the rent they charge. The reality is that a property market as badly broken as our one does not represent an appetising low-risk investment opportunity. The system – based around widespread home ownership and the accumulation of private wealth – worked reasonably well for a long time but now it doesn't. The reasons are a combination of factors beyond the State's control and the ball being dropped in areas that are its responsibility, such as planning and infrastructure. Housing and rental accommodation in particular are increasingly taking on the characteristics of a public good along the lines of health and education in the minds of voters: something the State regulates, provides and supports on a not-for-profit basis. Nationwide rent controls are just further evidence of this. Health and education are not services that the State looks to fund via hedge funds. They are funded by the exchequer and ultimately in the sovereign debt markets. That is where the Government should be looking for investment. It may now have no choice.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store