Charges decision will 'make matters worse' - Ibec

The employers' body Ibec has said today's decision by the aviation regulator on passenger charges at Dublin Airport was "likely…

The employers' body Ibec has said today's decision by the aviation regulator on passenger charges at Dublin Airport was "likely to add to the confusion and uncertainty regarding the development needs of the airport".

Ibec's director of enterprise Brendan Butler said passengers will now face growing congestion problems and instead of a speedy resolution to the overcrowding at the airport a bad situation will now only get worse.

As the first point of contact for approximately 70 per cent of business travellers to this country the airport should present a positive and modern image reflecting the success of the economy
Brendan Butler, Ibec

"The decision of the Regulator fails to address the two central issues in relation to the proposed investment programme, i.e. certainty and decisiveness. Instead of bringing clarity to the situation the Regulator has added to the confusion in relation to how the capacity problems in the airport will be resolved," he said.

"As an island economy, Ireland is considerably more dependent on air transport than other countries. We simply cannot afford to go on with the over-stretched facilities and neither can we afford indecision and more delays."

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Mr Butler said Ibec was receiving feedback from its members that Dublin Airport presents a "negative image" of the country and he said this could not be allowed to continue.

"As the first point of contact for approximately 70 per cent of business travellers to this country the airport should present a positive and modern image reflecting the success of the economy," he said.

"In reality the opposite is the case. Dublin Airport should be recognised as our flagship infrastructure project and supported accordingly."

The Irish Hotels Federation (IHF) called on the Government to act immediately to ensure the plans brought forward by the Dublin Airport Authority to provide additional capacity at the airport were delivered as proposed.

The body said in a statement there was an urgent need for the Minister for Transport and his Government colleagues "to ensure that this essential development at Dublin Airport will commence with out any further delay".

"For over a decade, we have known of the need for additional capacity at Dublin Airport. Unfortunately it has taken that long to come up with an appropriate plan to deal with the challenge. It would be disastrous if we were to now revert to a period of inaction and we see it as the Government's responsibility that this is not allowed to occur," said John Power, chief executive of the IHF.

However, Fine Gael spokeswoman on transport Olivia Mitchell said today's decision by the regulator had "struck the right balance between the interests of airport users and the Dublin Airport Authority".

"The claim by the DAA that they need a 50 per cent increase to fund expansion is scarcely credible given the huge and growing demand for its services, including its vast car parks. It flies in the face of normal commercial practice to raise prices in order to generate funds for expansion. Every other viable and successful business funds expansion from accumulated profits or from borrowing paid for by anticipated revenues generated by the expansion," she said.

"DAA have every reason to be confident that the future revenues will not only pay for a second terminal and a runway but will generate a healthy profit. There should therefore be no reason for an excessive landing charge and in fact a 50 per cent increase could jeopardise the very demand that they seek to meet through investing in a new terminal and runway."