The Irish Aviation Authority (IAA) has proposed a 15% cut to the fees airlines pay to use Dublin Airport, prompting mixed reactions from across the aviation sector.
The country’s aviation regulator has proposed reducing airline charges at Dublin Airport from €10.39 per passenger to €8.85 per passenger from next year.
The proposal will now go through a stakeholder consultation process.
Aer Lingus said it is reviewing the details before taking part in the consultation. Ryanair welcomed the proposal, while Daa – which operates Dublin and Cork airports – strongly criticised it.
The IAA said the proposed reduction reflects higher-than-expected passenger numbers at Dublin Airport, with traffic expected to continue growing following the removal of the 32 million passenger cap.
Daa said it is disappointed by the IAA’s draft proposal on charges, saying it “risks undermining the progress that has been made in making Dublin Airport one of Europe’s best performing capital city airports for passengers and airlines.”
The airport operator also said passenger charges at Dublin Airport are already among the lowest in Europe. Daa is seeking what it describes as “a modest increase” in passenger charges to help fund plans to expand capacity, modernise and “future proof” Dublin Airport.
According to daa Deputy CEO Nick Cole: “The proposed €1.54 reduction in the airport charge may appear small, but it has significant implications for Dublin Airport’s ability to continue investing in better facilities and services for passengers and airlines. Today’s passenger charge is already among the lowest in Europe and is supporting almost €300 million of investment in the airport this year – the biggest annual investment programme since Terminal 2 opened.”
“Passengers have told us they value the improvements that have been made, and our focus is on delivering even more. We are concerned that this Draft Determination could make it harder to sustain that level of investment in the years ahead.”
Meanwhile, Ryanair said it would increase capacity at Dublin Airport by up to 2 million additional seats and base three more aircraft there if the proposed charges cut is approved.
The airline also said it would make Dublin the first airport to receive its new Boeing 737 MAX-10 aircraft, which are 50% quieter, burn 20% less fuel and carry 20% more passengers per flight.
Ryanair’s Eddie Wilson said: “Lower airport charges are key to attracting airlines to invest in new routes, stimulate traffic growth, improve connectivity and maximise economic benefits for the all-island economy, where Dublin Airport is the main gateway.”
“Ryanair calls on the IAA in its final decision to go further and reject in full the DAA’s daft €5.6 billion “waste” plan (which includes an absurd provision for over €1.5 billion for “inflation” and “contingencies”), which is designed to inflate the DAA’s already high airport fees to boost its monopoly profits. Only low-cost, efficient investments at Dublin Airport should be allowed by the Regulator, which is why Ryanair and other airlines welcome these IAA’s proposals to cut Dublin Airport’s high fees,” Mr Wilson added.
Daa stated they will respond to the IAA ahead of the consultation deadline of Friday, September 18, before the publication of the Irish Aviation Agency’s final decision later this year.
