Regulator refuses 50% passenger fees hike to pay for new airport terminal
The Commission for Aviation Regulation has approved a 23% increase in charges, but the Dublin Airport Authority (DAA) has warned this is not enough.
The DAA wants fees to rise from €4.97 per passenger to €7.50 to fund its 10-year €1.2 billion investment plan. It says without the new terminal, passengers face years of congestion and overcrowding.
“The real losers here are passengers, the other users of Dublin Airport and the Irish economy as a whole,” said DAA chief executive Declan Collier.
The second terminal is the cornerstone of the investment plan, which includes another runway and an extension to the existing terminal. The airport expects to see more than 30 million people pass through its doors by 2010, compared to 18 million this year.
“We presented a comprehensive, integrated and progressive development plan for the airport, but at this price, there are profound implications for its delivery,” Mr Collier said.
Regulator Bill Prasifka said the 23% increase was sufficient but his office was prepared to re-examine its ruling after receiving new details of the DAA’s plans.
“If we believe there are grounds for a substantial change, we will go to a review,” he said.
Ryanair chief executive Michael O’Leary said a second terminal should be built by a private company.
“Had Bertie Ahern’s Government honoured its election promise and allowed an independent terminal to be built, there would be no increase in passenger charges, because the developer would not be able to levy any charges on passengers until the second terminal is developed and being used by passengers.”
He also said the DAA could fund the terminal by selling the Great Southern Hotel chain and investments in overseas airports.
However, the Irish Hotels Federation has called on the Government to use taxpayers’ money if the DAA does not get its increase.
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