Regulators and Dublin Airport begin familiar haggle over charges

There is a yawning gap between what Dublin Airport operator, State company DAA, wants to charge airlines for passengers over the next four years, and what regulators think it should charge. Broadly, DAA told the Commission for Aviation Regulation early this month that it needs to increase passenger levies from €8.24 to €14.77 by 2026.

The company says it needs this cash to pay for a much-needed €2.5 billion investment and to meet rising operational costs, not least the expense of hiring more security staff to cope with surging passenger numbers. Regulators, however, propose only allowing it to charge an average maximum of €8.52 a head up to 2026, although the cap varies in each of those years. They’re holding out the carrot of a €9.81 cap, if Dublin Airport invests as planned for the future.

If you think you’ve heard all this before, you’re right. Every five years the commission sets Dublin Airport’s charges. That process involves DAA setting out its stall, the regulator making a proposal, a haggle, officially called a “consultation” that gives every interested party, particularly airlines, a say. The commission then makes its decision.

The difference now is that regulators last set charges in 2019. Government Covid curbs intervened the following year, upending the predictions upon which that ruling was based. DAA now says two years of restricted flying lost it €500 million in earnings, while operating costs and its likely investment bill have risen. It warns that passenger numbers could plateau following this summer’s surge, and be slow to recover. Regulators disagree, saying Dublin Airport will break its 32.9 million record, set in 2019, by 2025. They also argue that neither investment nor operating costs will be as high as DAA calculates.

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This is where the haggling begins. That will take some months, involve airlines, who never want to pay more, and other parties with an interest in travel and tourism. Once this is done, the regulators will announce their decision. If past performance is any guide, the decision will please no one.