Air passengers face extra levies

AIR passengers in Ireland could be facing additional airport charges under proposals being considered by the Commission for the Aviation Regulation.

The CAR has recommended introducing an annual levy on all airports to fund the cost of overseeing EU legislation on the rights of air passengers.

It warned that the CAR will face a budgetary shortfall if it fails to recover the cost of implementing such legislation.

The commission yesterday published a consultation paper in which it outlines proposed changes in the way in which it recovers all costs from the aviation industry.

The CAR claims such changes are necessary because it has had to take on a new statutory consumer protection role since the last review of charges in 2002.

In Ireland the CAR is the designated body for investigating complaints from air passengers and enforcing air passenger rights. It has responsibility for overseeing an EU regulation which obliges airlines to pay compensation and refunds in the case of certain cancellations, delays and refused boardings.

The CAR pointed out that the Dublin Airport Authority has been the only organisation on which a levy has been imposed to fund such costs.

“Indirectly, passengers using Dublin Airport have been paying for a service available to all passengers in the State,” the CAR said.

Although the commission points out that it is not feasible to impose the charge on individual passengers directly, it is expected that individual airports will pass on the charges to passengers through charges to airlines.

The CAR has estimated that the annual cost of implementing the EU regulation are just under €508,000.

It has proposed that the amount levied on individual airports will be based on each airport’s share of total passenger numbers at the country’s nine main airports.

The CAR said it was also concerned that the existing system of overall airport charges has resulted in significant and unpredictable variations in levies.

As a result, the CAR is proposing to impose an additional “central levy” worth almost €2.4m on all airports to cover overhead costs and legal expenses.

It has also recommended increases in the cost of ground handling fees and the licensing of air carriers.

Overall, the CAR estimates that it needs to raise €4.12m from the aviation industry in 2008.