The Dublin Airport Authority (DAA) has said it is "very, very disappointed" that the aviation regulator has decided not to allow its requested increase of €2.50 in passenger charges and has called for a review of the decision.
Commissioner for Aviation Regulation Bill Prasifka today granted the DAA an increase of €1 per passenger, even though the authority had sought €2.50.
DAA chief executive Declan Collier said redevelopment and the planned increase in capacity at Dublin Airport could only happen if the body had the money to fund it.
It's widely recognised that there's a major capacity issue at Dublin Airport and immediate investment is needed here.Declan Collier, DAA
Speaking on RTÉ's 5-7 Liveprogramme, he acknowledged that the regulator had "a very difficult job" to do and said detailed discussions had taken place on the issue in recent months.
However, Mr Collier said the DAA "would be calling for an immediate review of the regulator's decision".
"It's widely recognised that there's a major capacity issue at Dublin Airport and immediate investment is needed here," he said.
Defending the DAA's request for a 50 per cent increase in passenger charges, Mr Collier said the increase sought by the authority had been "less than the price of a tube of toothpaste".
The DAA's insists that a €1.2bn capital investment programme is required to meet the airport's capacity issues and that an average airport charge of €7.50 per passenger is needed to finance this programme.
In a statement, Mr Collier added: "We presented a comprehensive, integrated and progressive development plan for the Airport but at this price there are profound implications for its delivery. As a result, the country's key international gateway will remain constrained, our passenger service levels will continue to deteriorate and the operational efficiency of our airline customers will be affected.
The regulator ruled that from January 1 st, the average annual maximum airport charge allowed at the airport over each of the four years 2006 to 2009 will be €6.14.
Mr Prasifka said he had taken into account a ministerial directive last August on the need to facilitate additional capacity at the airport.
He said the commission had complied with the directive by providing for efficient capital expenditure that includes Terminal 2 and additional pier capacity at Dublin Airport.
The regulator said he had accepted about 85 per cent of the €1 billion costs submitted by the Dublin Airport Authority in May 2005 in relation to its capital expenditure plan for the next 10 years.
Employers' body Ibec said the decision by the regulator was "likely to add to the confusion and uncertainty regarding the development needs of the airport".
"The DAA will provide the Government with a full review of the impact of the Regulator's decision on Dublin Airport as soon as it has had an opportunity to study the decision in detail."