AVIATION REGULATOR Cathal Guiomard has indicated he is prepared to sanction a 13 per cent increase in passenger charges at Dublin airport in 2010, with further rises in later years when the Terminal 2 (T2) facility opens.
In a draft determination for the period 2010 to 2014 published yesterday, Mr Guiomard said the passenger charge would rise from €7.39 this year to €8.35 in 2010.
He said this rise was necessary as there were fewer passengers travelling through the airport due to the recession.
The regulator estimates that the charge is “perhaps 18 per cent higher” than it would have been if the 2007 passenger forecasts for this period had remained valid.
Traffic at Dublin airport is expected to decline to about 20 million this year from 23.5 million in 2008.
The fee will rise further when T2 opens to enable the Dublin Airport Authority (DAA) to recoup costs associated with its construction and operation.
“The operating costs of T2 are currently unknown but the commission has said it will allow the operating costs of T2 revealed by a competitive tender to be ‘passed through’ to the price cap,” Mr Guiomard said.
This tender is expected to be issued by the Government in the next two to three weeks.
Mr Guiomard’s draft decision was criticised by Aer Lingus and Ryanair, Dublin airport’s two biggest customers.
Aer Lingus expressed its “deep disappointment” at the proposed increase, and said it was a “short-term decision that will again hurt Irish business”.
Enda Corneille, its corporate affairs director, said: “Aer Lingus will be making a detailed submission in response to the proposals so that any final determination on the issue of airport charges reflects the reality of an industry already reeling from a severe downturn.”
Ryanair’s Stephen McNamara said: “In recent weeks the Greek government has reduced regional airport charges to zero, and the Spanish government is rebating airport charges in the latter half of 2009 by 100 per cent for those airlines, like Ryanair, delivering growth.
“Only in Ireland is the Government-owned airport increasing charges, sanctioned by a Government-appointed regulator, at a time when the Government should be trying to stimulate, not strangle, tourism.”
The DAA, which had sought a minimum €3 increase, said the price rise would not enable it to bridge its earnings shortfall, which is estimated at €70 million this year. “The increase in passenger charges envisaged . . . will not bridge the substantial shortfall in earnings that the DAA has previously indicated that it is facing due to the economic downturn, and the company will continue to seek significant savings through its ongoing cost-recovery programme.”
The regulator has allowed for up to 4 per cent of the price increase to be clawed back from the DAA if certain performance targets are not met. These will be evaluated on a quarterly basis.
The regulator also excluded €211 million in proposed capital expenditure by DAA post-2009 from his calculations on the grounds that it did not meet the needs of users.
Mr Guiomard has set a deadline of 5pm on August 7th for parties to make submissions on his draft determination.
