Higher airport charges ‘will lead to job losses’

IRELAND will lose more routes and jobs as a result of increased airport charges, according to some of the country’s top analysts.

Following a proposition by the regulator to increase passenger charges at Dublin Airport from €7.39 to €8.35 from next January, analysts said airlines such as Ryanair will likely pull more routes in Ireland and expand at cheaper European airports instead.

This news comes after Ryanair and Aer Lingus both announced that they are cutting routes in Ireland on their winter schedules.

Goodbody analyst Eamonn Hughes said that given the weak economic environment, many airports have attempted to stimulate traffic through cutting prices.

He said Spanish airports recently offered rebates to airlines showing annual growth.

“As such, Dublin appears to be moving in the opposite direction, though on the other hand, most airports in Europe will not have the same heavy investment programme that Dublin does.

“Nevertheless, a heavy investment at a time of a weakening economy is not exactly ideal,” he said.

Mr Hughes said Ryanair has pulled out of other airports for less, while Davy’s Stephen Furlong said Ryanair will achieve cost reductions by moving away from expensive regulated airports.