DAA 'extremely concerned' over proposal to reduce charges at Dublin Airport

DAA 'extremely concerned' over proposal to reduce charges at Dublin Airport

The Commission for Aviation Regulation (CAR) has proposed reducing passenger charges at Dublin Aiport by 15%.

It has proposed a maximum price of €7.50 per passenger in the years from 2020 to 2024, a 15% reduction on the current price cap of €8.81.

In its Draft Determination on the maximum level of charges at the airport published today, the Commission said that the proposal "s in the best interests of passengers to ensure value for money, while providing a quality service".

Last year, 31.5 million passengers used the airport.

Commissioner Cathy Mannion said: “Our proposed price allows for the efficient operation of Dublin Airport in the period 2020-2024 and will enable a high-quality service for passengers.

"The reduction in price will benefit passengers, through lower airfares, but also by encouraging continued growth at the airport, offering passengers increased choice and connectivity.

The proposal also has more long-term consequences. It allows Dublin Airport to deliver key pieces of national infrastructure, which will facilitate a significant increase in the capacity of the airport.

"The cost of the investment plan is €1.8bn and it will deliver an airport capable of serving 40 million passengers per year at a level of service in line with international standards," she said.

Responding to the proposal, the Dublin Airport Authority (DAA) said it was "extremely concerned" over the plans.

It said the draft was "fundamentally flawed", "unjustified and risks creating stagnation at Dublin Airport, as it will jeopardise the investments in new facilities that are required to cope with growing demand".

“CAR’s flawed proposal is absolutely not in the best interests of passengers, airlines or the wider Irish economy,” said DAA Chief Executive Dalton Philips. “The most pressing issue at Dublin Airport isn’t our charges, which are already low, it’s about investing for Ireland’s long-term future and CAR’s proposal won’t allow us to do that.”

The DAA had proposed to deliver the €1.8bn planned investment programme by keeping charges broadly flat at around the €9.65 level, the 2018 charge, for the next five years.

It says CAR's proposal puts this programme at risk.

CAR will hold a public consultation on its draft determination and will issue its final pricing decision for 2020-2024 in the autumn.

The DAA says it will make a formal submission to CAR over the coming months "to challenge the flaws and the incorrect assumptions within its draft determination".

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