Airport passenger charges may rise

Passenger charges may rise at Dublin Airport following the break-up of Aer Rianta into three independent authorities, a confidential…

Passenger charges may rise at Dublin Airport following the break-up of Aer Rianta into three independent authorities, a confidential report is believed to warn.

The current ceiling on passenger charges of €5.29 will need to be seriously examined, according to the report by PricewaterhouseCoopers.

According to sources, the report points out that Dublin Airport will have to bear significant debt levels from Shannon and Cork and while the sale of the Great Southern Hotel chain could provide extra funds, current passenger charges may still need to rise.

The report suggests a maximum ceiling of €7.50 may be necessary at the new Dublin Airport in the first few years of operation. It speculates that in later years the charge may need to rise to €9.50.

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The Department of Transport has refused to comment on the contents of the report for confidentiality reasons.

SIPTU and the ICTU have also refused to comment.

The two bodies have appointed the financial advisers Mazars and Farrell Grant Sparks to analyse the report.

The accountancy firms have yet to report back.

The report is believed to point out that passenger charges are a major source of income for Aer Rianta and if the current ceiling remains in place, significant losses are possible in the first few years of operation.

Meanwhile, there has been further reaction to proposals by the Tánaiste, Ms Harney, to divert the rental income from the Shannon Free Zone to the new Shannon Airport authority.

Mr James King, chairman of Shannon Aerospace, said it was not the role of local communities and industries to fund the new airport.

"Consequently I disagree with the idea of Shannon industrial development revenue being directed to the financial support of Shanon Airport".

"Government should focus - through urgent apolitical dialogue - on strengthening and sustaining the regional development authority to act strategically on behalf of the key economic and social elements of the community.

"Shannon airport has the capacity to be a vital part of that endeavour. But it should not be in charge - airport management is a narrow, specialist activity," he said.

Shannon Aerospace is the largest employer in the Shannon Free Zone, employing about 900 people. It is owned by Lufthansa Technik and specialises in the repair, maintenance and overhaul of commercial aircraft.