Runway grounded unless charges rise

Ian Guider

Runway grounded unless charges rise

In a submission to the Commissioner for Aviation Regulation (CAR) ahead of its final report on airport charges, the DAA says it must be allowed to charge more.

In a draft report in May, the regulator proposed that charges could rise from its current cap of E5.09 to a maximum of E7.05 per person.

However, several airlines, including Aer Lingus and Ryanair have rejected any increase.

The airport authority needs to spent around E600 million over the next five years building a new terminal and runway, but says that the infrastructure cannot be delivered without an increase.

“Government policy is clear that the airports under DAA’s management must operate on a commercial basis, paying dividends and with no recourse to Government funding, grants or guarantees,” the authority said.

“In addition, a number of independent reports, including those produced for the commission, have highlighted the fact that Dublin’s airport charges are amongst the very lowest in Europe.”

While the DAA will be hoping the regulator sets the maximum amount it can charge at E7.05, Ryanair, in its submission, says there should be no increase.

Ryanair’s head of regulatory affairs Jim Callaghan said there was no need for a second runway at Dublin Airport and it wants the airport to sell off its international arm and Great Southern Hotel chain.

“The DAA should not be permitted to recover the costs of the second terminal unless it has the agreement of the majority of users that it meets their requirements and can demonstrate that the costs are not excessive,” Mr O’Callaghan said.

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