DAA buys €22m Aer Lingus lease
Published 09/11/2011 | 05:00
The Dublin Airport Authority will pay Aer Lingus over €22m for vacating its existing head office site at the capital's airport as part of the airline's previously announced plan to shift its HQ to a hangar.
Aer Lingus is set to receive a total cash payment of €10.5m in equal annual instalments over the next 10 years that it will set aside as a prepayment for rent and licence fees due to be paid by the airline to the DAA.
The carrier will also benefit from a non-cash consideration of €11.6m that includes credits for certain fees and rents payable by Aer Lingus to the DAA. The airline will also be granted a licence to continue occupying certain property owned by the airport authority.
The nearly 10 acres of lands on which the head office building sits and that are part of the Aer Lingus deal with the DAA, are also home to a swimming pool used by the Aer Lingus Social/Athletics Association.
Aer Lingus said in 2010 it had reached heads of agreement with the DAA to surrender its leasehold on its HQ and 10 acres, and move staff to Hangar 6. The move is part of its Greenfield cost saving plan that aims to reduce overheads by nearly €100m per annum.