DAA seeks review of airport charges

THE Dublin Airport Authority (DAA) is seeking an urgent review of airport charges following the decision by the aviation regulator to turn down a request for a 50% rise in passenger fees.

The DAA said it was extremely disappointed with the 23% rise in fees it can levy. The development cast doubt on its plans for major investment in the airport.

It said setting the charge at €6.14 for the next four years meant it will be “unable to deliver the full range of facilities required to relieve the current chronic congestion problems at Dublin Airport and to cater for passenger numbers of up to 30m per annum within the next 10 years.” Last week the DAA unveiled ambitious expansion plans for the airport, including a second terminal, a new pier at the existing facility and a second runway. In total, the investment will cost the company €1.2 billion over 10 years.

Declan Collier, the DAA chief executive, said the company had no way of funding the project other than passenger charges.

“The DAA urges the Regulator to carry out an immediate review of his determination and to provide the appropriate funding support for the needs of Dublin Airport and all its users,” Mr Collier said. “There is no time for delay if the Government’s challenging timeline to provide significant new infrastructure at the airport by 2009 is to be met.”

However, the aviation regulator Bill Prasifka said that the 23% took into account the DAA’s investment plans and other increased costs, such as new security personnel.

Mr Prasifka said the last time his office set airport charges it had included funds to build a new pier at Dublin Airport to cope with extra passengers, but the company had used these funds elsewhere.

He said it would not be fair to expect passengers to pay for the expansion twice.

“If we believe there are grounds for a substantial change, we will go to a review,” he said.

There was mixed reaction to the Commission for Aviation Regulation’s decision yesterday.

The Chambers of Commerce of Ireland said the upgrade was required, both for consumers and for the economy as a whole.

“This expenditure must take place and thus must be funded, if not by airport charges then by the exchequer and accordingly by the taxpayer,” the Chamber’s head of research Sean Murphy said.

IBEC’s director of enterprise Brendan Butler passengers will now face growing congestion problems and instead of a speedy resolution to the overcrowding at the airport a bad situation will now only get worse.

Ryanair, though, said the increase was unjustified and it said the Dublin Airport Authority would be able to finance the new terminal by selling off assets like the Great Southern Hotel group and its stakes in several airports.

“These assets have underperformed and contribute nothing to Irish airports or Irish tourism.

“If these assets were disposed of, and the €700 million released, then this would fund the entire capital expenditure programme of the DAA without any need for Irish passengers or Irish consumers to be ripped off yet again.”