Turnover at the Dublin Airport Authority has plunged by 15% in the first six months of the year and operations at Dublin airport's new Terminal 2 will not start until late next year at the earliest, the Sunday Tribune has learned.

Figures from the Dublin Airport Authority (DAA), supplied to bond investors in the last few days, show traffic down 11% during the first half, with declines in May reaching as high as 15%. Passenger traffic and associated commercial revenues have slumped severely with earnings before interest, tax, depreciation and amortisation (EBITDA) down by 33% in the half.

Work on the €700m Terminal 2 and Pier E developments are proceeding on budget and work will end early next year.

But the operation of the terminal is not expected to begin until possibly almost a year later. According to information provided to ratings outlets a new operator will need time to "mobilise" during 2010 before being ready to operate the facility. A tender process to pick a terminal operator will begin shortly.

The Dublin Airport Authority is currently imposing a significant cost reduction plan on the company. It has pencilled in a full year decline in passenger numbers of 13%, with capital expenditure cut back significantly.

It is understood that recently Standard & Poor's warned the company that it could be facing a downgrade if "current declines in traffic continue at the same rate through the remainder of 2009".

The company believes traffic will stabilise in 2010 and there will be some modest growth in 2011.