Expected Increase in Dublin Airport Passenger Charges

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Passenger charges at Dublin Airport are expected to rise by 13% or by €1 during 2010 based on proposed increases announced by the Commission for Aviation Regulation (CAR). These charges are on top of the expected increase in charges during 2011 when Terminal 2 is opened under the draft proposal by CAR. The second proposed increase would enable the Dublin Airport Authority (DAA) to recoup the costs of its investment in the new terminal.

The reduction in passenger numbers by 20.7 million is the biggest contributory factor to the increase in charges. The increase in charges is on top of the controversial Government travel tax on flights from Irish airport that can be as high as €10 per passenger.

"There are fewer passengers than expected from which to recover costs of the airport" - Cathal Buiomard - The Aviation Regulator

The passenger charge could be lowered by 4% if the DAA failed to meet up to 12 strict conditions based around service quality, security and baggage reclaim time limits. Unsurprisingly the decision to increase the fees was criticized by both Aer Lingus and Ryanair:

"Aer Lingus will be making a detailed submission in response to the proposals so that any final determination on the issue of airport charges reflects the reality of an industry already reeling from a severe downturn." - Enda Cornite - Aer Lingus Corporate Affairs Director

Ryanair remained true to form with a strong condemnation of the proposed increased charges for passengers and pointed to other airports around Europe who were reducing charges to encourage growth:

"Only in Ireland is the Government-owned airport increasing charges, sanctioned by a Government-appointed regulator, at a time when the Government should be trying to stimulate, not strangle, tourism. In recent weeks the Greek government has reduced regional airport charges to zero, and the Spanish government is rebating airport charges in the latter half of 2009 by 100 per cent for those airlines, like Ryanair, delivering growth." – Stephen McNamara – Ryanair Spokesperson

The DAA, which had sought an increase of €3 per passenger, in order to help bridge an expected earnings shortfall of €70million, stated they will seek major savings in the running costs of the Dublin Airport.

“The increase in passenger charges envisaged... will not bridge the substantial shortfall in earnings that the DAA has previously indicated that it is facing due to the economic downturn, and the company will continue to seek significant savings through its ongoing cost-recovery programme.” - DAA