Airlines flying into Dublin from outside the EU will now have to pay charges as the airport's infrastructure struggles to keep up with passenger numbers.
The Dublin Airport Authority announced today it was suspending its route incentive scheme which saw airlines flying from outside the EU at least three times a week receive subsidies in their first three years of operation.
The airport authority had offered a full discount on charges, which equate to about €6.50 per passenger, for the airlines first year operating the route.
This was then reduced to a 75 percent discount in the second year and 50 percent discount in the third year.
An airport authority spokeswoman said the decision to suspend the scheme was because of continued uncertainties, including Ryanair's legal challenge to slot co-ordination.
Ryanair is challenging the authority's decision to allocate airlines specific time slots for incoming and outgoing flights which it says is illegal.
The authority says slot-allocation is needed to manage congestion at the airport.
The authority is also locked in a battle with Ryanair and local residents groups over the proposed Terminal 2 (T2).
"We expect a decision to be made on terminal two in a couple of weeks and hopefully there will be a positive outcome," she said.
Ryanair has stated it will challenge the decision if approval is given by An Bord Pleanala, for T2.
Ryanair's Michael O'Leary has said T2 is too big and is being built primarily for its rival Aer Lingus.
The spokeswoman said seven airlines qualified for the route incentive so far this year and the authority would see out its three-year agreement with them but would not accept any new airlines to the scheme.
The decision is a response to planning and other uncertainties relating to the operation and development of Dublin Airport including the construction T2, the extension to the existing terminal and other key facilities needed to address the airport's shortage of passenger and airfield capacity.
Dublin Airport Director Robert Hillard said the airport was still welcoming new traffic.
He said: "But in an environment where the airport's infrastructure is under pressure due to strong passenger growth and where there are still obstacles to our plans to transform the airport, we must examine all available measures to mitigate congestion at peak travel periods. The review of our route support schemes is one such measure."
