The DAA has slammed proposed cuts to airport charges at Dublin as being "exactly what the Irish economy does not need" and has warned the move could scupper the airport's development and damage Ireland's global connectivity.
The Commission for Aviation Regulation (CAR) has said the DAA should cut the amount of money it charges airlines using Dublin Airport to €7.50 per passenger each year from 2020 to 2024. It said this is down 15% on this year's price cap of €8.81.
The DAA has said the €8.81 figure is incorrect and that the proposed new charge would be 22% lower than the €9.65 price cap it currently has in place. It also said lower airport charges would not necessarily be passed onto passengers, by airlines, in the form of lower air fares.
The CAR's draft determination will be open to consultation until early July and a final decision will be made in the autumn. Its proposals only cover Dublin Airport. Cork and independently-owned Shannon airports set their own rates.
The DAA recently said it would not seek to raise airport charges for the next five years and said current rates could cover its planned €1.8bn five-year investment programme at Dublin Airport.
"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...it's about investing for Ireland's long-term future and CAR's proposal won't allow us to do that."
Ryanair said the proposed charge reduction doesn't go far enough, suggested the cut should be deeper and said a third terminal at Dublin would automatically reduce charges and remove the need for a cap.