Aer Rianta presents new pricing regime amid criticism on charges

Aer Rianta has unveiled its proposed airport pricing structures amid criticism from some airport users of its decision to increase peak runway charges last month and questions over its decision to challenge the aviation regulator's determination on charges in the High Court.

The airport operator's new pricing regime, outlined at a public meeting yesterday, follows the determination on airport charges by the aviation regulator last month.

Aer Rianta has proposed a passenger service charge of £2.21 per departing passenger, compared to the previous basic standard of £7.23 per passenger. However, Aer Rianta has also included a £3.54 airport security charge per departing passenger. Until now, the security fee was included in the passenger load fee of £7.23. This charge excludes any contribution towards the costs of hold-baggage screening, which is expected to be required by EU law. Aer Rianta said this was the responsibility of the individual airlines.

It also said the charge does not include the provision for additional security requirements in the wake of the terrorist attacks in the US on September 11th.

But low cost airline Ryanair said the aviation regulator had indicated that these costs had been included in his determination on charges.

Aer Rianta has also proposed introducing aircraft parking charges ranging from £9.61 to £24.02, depending on aircraft type. Aircraft parking for extended periods will also attract surcharges.

Aer Rianta is proposing to retain the standard peak landing and take-off charge of £3.50 per tonne, introduced last month, along with the £2.16 per tonne off-peak charge which was stipulated by the aviation regulator. However, Aer Rianta's decision to raise peak landing charges last month along with the off-peak charges was criticised by airport users, some of which said they had not been consulted on the increases.

But Aer Rianta's deputy chief executive, Ms Margaret Sweeney, defended the company's decision to implement the new charges.

"The aviation regulator's determination provided for an off-peak runway charge at Dublin Airport," she said.

"That off-peak charge went from 21p a tonne up to £2.16 a tonne. The existing peak charge for the runway at Dublin airport was £2.02, which was lower than the off-peak charge which made no sense at all. The regulator's determination provided that it expected us to adjust the standard charge up, once the off-peak charge came into play, which we did."

Ms Sweeney said the existing structure was developed more than 30 years ago and did not reflect the current market dynamics.

"We've tried to look at the proper mix of dynamics and behaviour to get proper efficiency into the use of resources in terms of landing and taking-off of aircraft and in terms of the use of the runways and parking of aircraft."

But the proposals have been criticised by Ryanair. Mr Jim Callaghan, head of regulatory affairs, said Aer Rianta had provided no explanation of how it had determined its charges.

"These figures don't give us any basis of whether prices are going to go up or down or what effect this scheme will have on overall charges," he said.

"Any move towards a true efficient use of facilities will be welcome but I think it is important to note there is no analysis of how this is going to affect the overall cost of airlines."