IAA Proposes 15% Cut in Airport Charges at Dublin; Prompting Wildly Differing Reactions

The Irish Aviation Authority (IAA) has proposed a 15% cut in the amount airlines have to pay to use Dublin Airport; leading to vastly different reactions from stakeholders.

The country’s aviation industry regulator has proposed a reduction – from €10.39 per passenger to €8.85 per passenger – in airline charges at Dublin Airport from next year; with the suggestion now going to stakeholder consultation process.

Aer Lingus said it is reviewing the details before taking part in the consultation. Ryanair welcomed the move; but Daa – which operates both Dublin and Cork airports – has slammed the proposal.

The IAA’s reasoning is to do with Dublin Airport seeing higher than anticipated passenger numbers, which are now set to keep rising with the removal of the 32 million person passenger cap. And, that rise in passenger numbers is also boosting the airport’s ancillary revenues through sales of food, car parking and other assorted retail.

However, Daa said it is disappointed by the IAA’s draft proposal on charges, saying it “risks undermining the progress that has been made in making Dublin Airport one of Europe’s best performing capital city airports for passengers and airlines.”

The airport operator added that passenger charges at Dublin Airport are already among the lowest in Europe. Daa wants what it calls “a modest increase” in passenger charges to help finance its work to increase capacity, modernise and “future proof” Dublin Airport.

According to daa Deputy CEO Nick Cole: “The proposed €1.54 reduction in the airport charge may appear small, but it has significant implications for Dublin Airport’s ability to continue investing in better facilities and services for passengers and airlines. Today’s passenger charge is already among the lowest in Europe and is supporting almost €300 million of investment in the airport this year – the biggest annual investment programme since Terminal 2 opened.

“Passengers have told us they value the improvements that have been made, and our focus is on delivering even more. We are concerned that this Draft Determination could make it harder to sustain that level of investment in the years ahead.”

Elsewhere, Ryanair has promised to increase capacity at Dublin Airport – to the tune of up to 2 million more seats and three more based aircraft – if the proposed charges cut is implemented; as well as selecting Dublin as the first airport to receive its new Boeing 737 MAX-10 aircraft; which are 50% quieter, burn 20% less fuel and carry 20% more passengers per flight. 

Ryanair’s Eddie Wilson said: “Lower airport charges are key to attracting airlines to invest in new routes, stimulate traffic growth, improve connectivity and maximise economic benefits for the all-island economy, where Dublin Airport is the main gateway.”

“Ryanair calls on the IAA in its final decision to go further and reject in full the DAA’s daft €5.6 billion “waste” plan (which includes an absurd provision for over €1.5 billion for “inflation” and “contingencies”), which is designed to inflate the DAA’s already high airport fees to boost its monopoly profits. Only low-cost, efficient investments at Dublin Airport should be allowed by the Regulator, which is why Ryanair and other airlines welcome these IAA’s proposals to cut Dublin Airport’s high fees,” Mr Wilson added.