Passenger charges at Dublin airport are set to rise by 23 per cent from January, but the regulator has refused to grant the full increase requested by the Dublin Airport Authority (DAA).
The decision to increase charges from €5 per passenger to €6.14 from January, rather than to €7.50, was strongly criticised by the DAA last night. It has called for an immediate review of the decision and is planning to discuss the issue with Government.
Aviation regulator Bill Prasifka said the main driver of the higher charges was increased security costs. "Why are charges going up? Well because costs are going up. It really is that simple," he said.
The DAA believes that €7.50 is the minimum needed to fund a new terminal that is expected to cost €170-€200 million depending on design and specification.
Declan Collier, chief executive of the DAA, said: "The real losers here are passengers, the other users of Dublin Airport and the Irish economy as a whole. We presented a comprehensive, integrated and progressive development plan for the airport but at this price there are profound implications for its delivery. As a result, the country's key international gateway will remain constrained, our passenger service levels will continue to deteriorate and the operational efficiency of our airline customers will be affected".
However, Mr Prasifka said his office needed more time to make a decision on the terminal.
He said the separation of Cork and Shannon airports from Dublin needed to be considered also. Consequently the latest review might be revisited in the short to medium term, he said.
He told reporters at a briefing in Dublin that his office had long supported the construction of Pier D at the airport, but it had never been built.
He said a determination on charges back in 2001 allowed Aer Rianta (now known as the DAA) to fund the facility, but it never happened. Because of this, costs associated with Pier D, in terms of charges, have been subtracted from the latest figures, he said. "It is still needed, but it should not be funded twice," he said.
He said his office differed with the DAA over what was possible at the airport. For instance, he said the DAA was capable of making more from its retail and food offerings.
He also questioned the spending on the terminal at Cork Airport, which is costing €160 million, but will only cater for between three and five million passengers per annum.
He said while the DAA might be disappointed with his decision it would help the company to maintain its debt rating and raise capital during the next four years.
Ryanair said the DAA was being rewarded despite the queues and price gouging at the airport. "This increase will yield a further €20 million per annum in profit to the DAA while failing to address any of the queues, congestion, or overcrowding which Irish passengers and visitors have suffered all summer long," said its statement.
The Chambers of Commerce of Ireland also expressed its disappointment at the decision.
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