Regional airports risk losing business as a result of a 32 million-a-year passenger limit at Dublin, a leading figure in the industry has warned Taoiseach Simon Harris.
The news comes as the European Commission confirms that it is monitoring the row over passenger caps at the country’s biggest airport, which is heading for court within weeks.
Airline and tourist businesses have been calling on the Government to lift a limit of 32 million passengers a year imposed by planners on Dublin Airport in 2007 to control traffic on the roads around the gateway.
Kerry Airport chief executive John Mulhern wrote to Mr Harris this week warning that the limit was having a knock-on effect on regions, including his own, where tourism is a key source of jobs.
Kerry Airport chief warns that Dublin Airport passenger cap is bad for business
Pensions: Uncertain times ahead of retiring workers
Can knowing tomorrow’s news make you rich? That’s not a foregone conclusion
Taking voluntary redundancy or getting laid off? You need to know about your tax, welfare and pension options
“In my opinion, it appears suppression of growth at Dublin Airport is both directly and indirectly impacting the regional airports,” Mr Mulhern said in his letter to the Taoiseach.
He argued that airlines consider expansion at regional airports when the central hub has healthy growth to support the financial risk involved.
Kerry has begun expanding to lure more passengers in coming years and support the county’s economy, Mr Mulhern noted.
“Airlines are in the latter stages of route development for summer 2025 and I fear any opportunity for quantifiable growth in the regional airports is diminished,” he warned.
“Tourism growth into Ireland including via Dublin is essential to the economy of rural Ireland and should be encouraged rather than inhibited.”
Retail and hospitality in the firing line as Irish insolvencies ramp up
While thousands of visitors arrive in Kerry directly by air, he explained that “many multiples more” travel to the county via Dublin Airport.
He noted that regional airport managers recently discussed the Dublin passenger cap at a meeting as the issue increasingly concerns them.
Mr Mulhern predicted that planned court action by Ryanair and Aer Lingus would end the cap, but said that in the meantime it is causing “much wider injury” to the industry.
Meanwhile, the European Commission confirmed that it was aware that Irish and US airlines have challenged moves by the regulator to limit slots at Dublin Airport to ensure passenger numbers remain within the 32 million limit.
“The commission will continue to monitor the developments,” said a spokeswoman, who noted that it had not received any formal complaints.
The High Court is due to hear a challenge by Ryanair and Aer Lingus, Dublin’s biggest airlines, against the Irish Aviation Authority’s decision to limit carriers at the airport to 14 million this winter by restricting the allocation of new take-off and landing slots.
Both are also expected to take action over the authority’s decision last week to limit airlines to 25.2 million passengers in summer 2025 when the case is heard on December 3rd.
US industry group Airlines for America warned last week that the Dublin passenger cap breached EU-US aviation treaties. It is seeking to join the Irish carriers’ action.
Kenny Jacobs, chief executive of Dublin Airport operator DAA, will warn on Tuesday that the passenger cap will hit the State company’s financial results for the second half of this year and into 2025.
DAA’s results will show profit after tax and before once-off charges rose 44 per cent in the six months to June 30th to €82.1 million, aided by a 5 per cent boost to passenger numbers at Cork and Dublin airports to a total of 17.9 million.
He warned that passengers face higher fares and less choice until planners lift the cap. DAA has asked the planning authority, Fingal County Council, to lift the cap to 40 million.
- Sign up for the Business Today newsletter and get the latest business news and commentary in your inbox every weekday morning
- Opt in to Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
