Dublin Airport Authority (DAA) has warned that passenger growth at Dublin Airport will be stifled over the next five years unless the aviation regulator reverses its draft determination on airport charges.

 

In a submission to the Commission for Aviation Regulation (CAR), DAA warns that traffic growth at Dublin Airport will be damaged if the regulator does not allow for essential investments aimed at improving facilities at Terminal 1; growing transfer passenger numbers; expanding the use of the main runway, and delivering additional aircraft parking areas.

 

According to DAA, Dublin Airport handles more than 80% of all international flights to and from the State.

 

“The aviation regulator’s short-sighted decision to veto key investments needed to allow Dublin Airport to win additional business will constrain passenger growth over the next five years and significantly impede the strategic development of the airport,” said DAA Chief Executive Kevin Toland.

 

KEEPING CHARGES FLAT

“The regulator has opted for stagnation at a time when we should be expanding rapidly.”

 

DAA says its strategy to maximise passenger growth opportunities at Dublin Airport over the next five years means keeping charges flat, offering generous incentives to airlines to increase their business and investing in key areas that will help deliver additional traffic growth and a better travel experience.

 

Above and top: Dublin Airport’s 40 year-old Terminal 1.

 

“Charges at Dublin Airport are already lower than the European average and the regulator’s suggested further reduction is both unwarranted and uneconomic,” Toland said.

 

“Our policy of not increasing charges and prudently investing in incentives and improved infrastructure has delivered three and a half years of growth at Dublin Airport, but the regulator has opted to impede growth and provide a poorer product for passengers.”

 

AGEING TERMINAL

In its draft determination on airport charges for 2015-2019, CAR has vetoed almost €170m worth of what DAA determines ‘essential upgrades’.

 

“CAR has blocked projects that would help deliver additional growth at Dublin Airport, such as an improved transfer facility to boost this fast-growing segment of Dublin Airport’s business, an upgrade to Terminal 1, which is now more than 40 years old, and airfield improvements to improve safety and allow increased use of the existing runway at busy times,” says DAA.

 

According to Toland, upgrades to Terminal 1, which was built in the early 1970s, are strongly supported by passengers. A detailed study of T1 passengers found that not only did they support investments in improved facilities, but that they would be willing to pay for them through higher airport charges.

 

“The research showed that passengers rejected the option of lower airport charges, and said they’d prefer to pay extra for improvements to the T1 arrivals area, the terminal’s facade, and check-in and security areas,” Toland said.

 

Dublin Airport’s The Loop retail concept operated by DAA-owned ARI.

 

PASSENGERS CALL FOR IMPROVEMENTS

“The findings of the research couldn’t be clearer – passengers using T1 want a better product and are more than willing to pay for it. Our plan will deliver a significant improvements to Terminal 1 with no increase in Dublin Airport charges over the next five years.”

 

The regulator has also decided to delay the delivery of a new parallel runway at Dublin Airport beyond the next five years.

 

Currently, the construction of a second runway will be funded once passenger numbers reach 23.5m – which will be in 2018/2019 according to CAR’s estimates. But the regulator has increased that threshold to 25m passengers per year, pushing the delivery of a new runway into the next decade.

 

“Access to new and emerging markets in the Far East is vital for the Irish economy and for the tourism sector, but CAR mistakenly believes that it makes sense to postpone Ireland’s ability to offer direct connections to these vital locations,” Toland said.

 

CAR issued its draft determination on Dublin Airport charges in May and is due to issue its final determination by the end of this month.