Dublin airport charges set to rise €1 to €8.35 per passenger

PASSENGER charges at Dublin Airport are set to rise by almost 13% next year based on proposed increases announced by the Commission for Aviation Regulation (CAR).

The new maximum levels determined by the CAR will see charges at Dublin Airport increase by almost €1 per passenger.

Travellers are set for more bad news as airport charges at Dublin are likely to increase even further from 2011 with the planned opening of T2 – the controversial second terminal – under a draft determination of maximum charges published by the CAR yesterday.

The Aviation Regulator, Cathal Guiomard, said the price cap at Dublin Airport next year will increase to €8.35 per passenger from its current rate of €7.39.

Mr Guiomard claimed the reduction in travellers using the airport in 2010, estimated at 20.7 million, was the biggest single factor in the decision to allow an increase in charges.

“There are fewer passengers than expected from which to recover the costs of the airport,” he explained.

The CAR estimated that the average annual price cap is 18% higher than it would have been if passenger growth forecasts made in 2007 had been unaffected by the economic downturn which has seen a big reduction in traffic at Dublin Airport.

Mr Guiomard said precise maximum charges for 2011-2015 could not be determined as no tender had yet been issued for the construction of T2.

The CAR has proposed that the price cap once T2 opens will be €8.37 plus an increase to cover the operating costs of the new terminal.

A consultant’s report commissioned by the CAR also reveals that savings of about 10% could be achieved in operation costs at the existing main terminal at Dublin Airport.

In its proposals, the CAR has allowed for €198m investment by the Dublin Airport Authority as well as a further €338m (mostly associated with the cost of building a second runway) conditional on certain conditions being met by the DAA.

However, Mr Guiomard said the CAR had not allowed for €211m worth of projects planned by the DAA, including refurbishment of the existing terminal, to be recovered through increased passenger charges.

The CAR has also proposed that the price cap could be lowered by up to 4% if the DAA fails to meet 12 specific targets covering service quality which will be monitored on a quarterly basis. Such targets cover security and baggage hall clearance time limits, flight information facilities and airport cleanliness.

The maximum airport charges set by the CAR cover landing and take-off costs, aircraft parking and passenger processing but excludes ground handling services and car parking.

Last night, Ryanair condemned the CAR’s draft decision for allowing further cost increases at a time when traffic levels were falling and other airports around Europe were reducing charges.