Passengers 'will pay for EU airport regulation'

Air passengers will end up footing the cost of new regulations governing airports which have been drafted by the European Commission, an Oireachtas committee has heard.

A new EU directive aims to ensure transparency in the fees airports charge carriers for providing terminal facilities. It was introduced in response to concerns that some airports were charging airlines exorbitant fees, thus pushing up ticket prices.

However, the European Parliament last week removed small airports from the remit of the legislation after MEPs argued that they were more likely to be at the mercy of big airlines.

Yesterday, the Dublin Airport Authority and Ireland West airport at Knock, Co Mayo, told the Joint Committee on European Scrutiny they welcomed the changes, which means that Dublin airport will be the only Irish airport large enough to be affected by the new rules.

However, both the DAA, which runs Dublin, Cork and Shannon airports, and Ireland West said they still had concerns. Along with committee members, they expressed fears that it could result in higher ticket prices.

Oliver Cussen, DAA's corporate affairs director, said the cost of regulation to date had been substantial and such costs always ended up with the users.

Robert Grealis, chief executive of Ireland West airport, said the disclosure demands in the directive were substantial. The airport would either have to absorb these extra costs, and thereby forgo investment, or pass them on to the customer. "Either way passengers will pay." The measure would not help smaller airports compete; rather, it would give the airlines even more power.

Labour Senator Alan Kelly predicted the EU measure would increase costs for all concerned - airports, airlines and consumers.

Senator Paddy Burke (Fine Gael) described the directive as anti-competitive and said market forces should be allowed to dictate, while Fianna Fáil Senator Timmy Dooley said it would result in more bureaucracy.

Mr Cussen attacked the regulatory process for Dublin airport, for which airport charges have been set by the Commission for Aviation Regulation at over €6 per passenger. An additional €2 per passenger would have funded €2 billion worth of additional investment at the airport, he said.

The airport was 70 per cent reliant on commercial revenues from shops and parking spaces, with the remaining 30 per cent coming from passenger charges, when a 50:50 split would be better. Concessions at the airport were free to set their own prices, he confirmed.