The Dublin Airport Authority (DAA) has suspended its incentive scheme for the launch of new routes to non-European Union destinations in a bid to counter congestion problems at the capital's airport.
The DAA said no new applications for discounts on airport charges will be processed until it completes an internal review of the scheme.
Dublin airport handled 13.3 million passengers in the first seven months of this year, an annual increase of 10 per cent.
The airport is on course to handle a record 22.8 million passengers for the year, up from 21.3 million in 2006.
This is placing a big strain on the airport and its facilities. With uncertainty over Terminal 2, which is the subject of a planning appeal to An Bord Pleanála, the DAA has decided to suspend the incentives as a measure to curb traffic growth.
"In an environment where the airport's infrastructure is under pressure due to strong passenger growth and where there are still obstacles to our plans to transform the airport, we must examine all available measures to mitigate congestion at peak travel periods," said Bob Hilliard, director of Dublin airport.
It is understood that seven applications for new routes to non-EU destinations have already been approved this year. These include Etihad's recently-launched service to Abu Dhabi, and Aer Lingus's new routes to Washington, Orlando and San Francisco in the US.
A number of airlines in the US and Canada are believed to be negotiating with the DAA about the launch of new services from Dublin in 2008, following the agreement of open skies deals.
The DAA said it hoped to conclude its review quickly.
An Bord Pleanála is expected to give its decision on the Terminal 2 appeal by August 23rd. A positive outcome for the DAA could see it restore the incentive scheme.
The three-year incentives apply only to destinations outside of the EU, not currently served from Dublin and that have a frequency of at least three times a week.
The incentives range from a full discount on standard airport charges in year one of a new route, down to a 50 per cent discount in year three.
Recent reports have suggested that Ryanair is planning to launch routes to Basle in Switzerland and to Marrakesh in Morocco. It is understood, however, that no applications for these routes have yet been received by the DAA.
