Airport charges at Dublin Airport are set to fall by 19%, on a cumulative basis, over the next five years — 3% more than originally envisaged.
The Commission for Aviation Regulation had, back in May, proposed a 22% reduction — from 2015 to 2019 inclusive — on the maximum amount the Dublin Airport Authority (DAA) could charge airlines, on a per passenger basis, stating that the factors which had put charges under upward pressure in recent times had moved into reverse.
The DAA can now charge airlines a maximum of €10.30 per passenger, at the airport, in 2015, followed by a cap of €9.87 in 2016, €9.45 in 2017, €9.06 in 2018 and €8.68 in 2019.
According to acting commissioner, John Spicer the decision is based on “incentive regulation” and should be viewed as encouraging the DAA to realise efficiencies, via lower operating and financing costs, with a view to ultimately passing the benefits on to users.
“DAA outperformed the targets set in the Commission’s 2009 determination [the last time the commission set a price cap] and it is now time for users to enjoy the benefits of this lower cost base in the form of reduced airport charges,” he added.
Mr Spicer said that the commission still expects the DAA to raise around €1.8 billion from airport charges and commercial revenues over the next five years.
“This is 12% more than the revenues it was able to collect in the last five years. The significant fall in passenger numbers in 2009 was an important factor in the large increase permitted at that time. It is only right that the charges should start to come down, now that passenger numbers are starting to grow again,” he added.
In response, the DAA — which suggested that May’s original draft proposals were “unsustainable and uneconomic” — said the new price settings are “unwarranted” and that it is disappointed with the decision.
Chief executive Kevin Toland said charges at Dublin Airport are already 22% lower than European averages. The DAA had planned to keep charges flat over the next five years.
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