Passengers face charge hike for air terminal

PASSENGERS at Dublin Airport will face a substantial hike in the €5 charge they pay no matter who develops the second terminal, Dublin Airport Authority’s new chief executive David Collier warned yesterday.

There is a major stand-off between the Government partners over who should develop the second terminal, with Transport Minister Martin Cullen favouring the semi-State Dublin Airport Authority (DAA) and the Progressive Democrats favouring private developers.

The DAA annual report, published yesterday, showed a 54% hike in the company’s profits last year, up to €31 million.

However, the results also showed the company’s debt had risen to €384m - up €7m. The DAA insisted this would not scupper their chances of building a new low-cost second terminal.

“This debt is not a barrier to building the second terminal, it has not risen that much in the past year,” a DAA spokesman said.

The cost of a second terminal is estimated at around €450m. Mr Collier said yesterday that without direct Government subvention, the only way such money could be raised commercially would be through appropriate airport charges. Dublin Airport charges are capped at €5 a passenger - about half the average level for European airports of Dublin’s size.

“’These charges will have to rise if the DAA, or any other developer, is to invest in a terminal and other airport infrastructure,” Mr Collier said.

But it is aviation regulator Bill Prasifka who fixes the passenger charges and whoever develops the second terminal will have to get his approval for any increases.

Meanwhile, DAA chairman Gary McGann said that despite its increased profits, the company will have to address its loss-making operations if it is to be able to pay for the second terminal at Dublin Airport.

The DAA’s Great Southern Hotels lost €2.2m and Shannon Airport made losses of €2m last year. Mr McGann said if these losses were not tackled they would undermine the development of the DAA. SIPTU general secretary Joe O’Flynn has appealed to the Government not to close the hotels because 800 jobs will be lost.

Following the maiden flight of the world’s biggest plane, the Airbus A380, in France yesterday, the DAA confirmed it has lodged a planning application for a runway that could accommodate the superjumbo. “If we secure planning it is expected this runway will be fully operational by 2012,” the DAA spokesman said.