DAA Finance plc Statement

DAA Finance plc

EUR549,650,000 6.5872 per cent notes due 2018 of DAA Finance plc, guaranteed by Dublin Airport Authority plc (ISIN:XS0375220588)

Update on Expert Panel Report on Pension Arrangements

The Expert Panel (“the Panel”), which was formed under the joint sponsorship of two Irish Government departments, the Irish Business and Employers’ Confederation and the Irish Congress of Trade Unions (“Congress”) furnished its report (“the Panel Report”) on 16 June last.

The purpose of the Panel was to investigate how a final resolution of the industrial relations issues relating to the Irish Airlines (General Employees) Superannuation Scheme (“IASS”) could be achieved.

The majority of airport employees of the parent company, DAA, are members of the multi-employer IASS, with current and past employees of the company comprising somewhat less than 30% of the membership of the IASS.

The Panel Report, along with a statement from the Panel, can be found here

The Panel recommendations represent an integrated package of measures in respect of each employer and the Panel has requested that the terms are put by the parties to their respective constituents without delay, with a recommendation for acceptance. The Panel notes that detailed agreements between the parties will need to be put in place to incorporate these recommendations together with the relevant Labour Court Recommendations in each case to form the entire agreement between them on pension and pension related matters to be completed and executed by them contractually in full and final settlement of these matters.

The Panel has recommended an increase in the capital sum payable by DAA in respect of active members, bringing the sum in question to €57.3 million.

The Panel Report does not quantify a recommended amount in respect of deferred members of the IASS (“Deferreds”). Instead, and in the context of the integrity of the IASS Trustee proposal of 14 February 2014 being maintained, the Panel has agreed a set of principles with DAA and Aer Lingus with regard to an increased payment to Deferreds. Based on this set of principles, DAA calculates that the payment proposed to be paid by it in respect of Deferreds could be €15.5 million.

DAA is continuing to review the details of the Panel’s Report. While the Panel’s recommendations involve a significant increase in the capital sum to be paid by DAA, the company believes it represents the basis for a final and complete resolution of pension arrangements, particularly given the Panel’s view that this is the “final opportunity” to settle this protracted and complex issue.

DAA has met Congress and the trade unions on matters of common understanding relating to the Expert Panel Report. Congress has also informed the company that SIPTU had requested them to facilitate further discussion with the Panel regarding certain matters in the Report relating to airport police and fire service employees.

DAA remains committed to engaging with all stakeholders to progress matters to a final and timely resolution.

Enquiries:
Ray Gray, Group Chief Financial Officer, DAA
Telephone number: +353 1 814 5265/6
ray.gray@daa.ie

Paul O’Kane, Chief Communications Officer, DAA
Telephone number: +353 1 814 1897
paul.okane@daa.ie