Airports deny 80% rise in charges over past decade

ACI claims increases of less than €3 a head and investment of €53bn

ACI’s figures cover 21 airports, including Dublin. Image: iStock
ACI’s figures cover 21 airports, including Dublin. Image: iStock

Dublin and Europe's other top airports have increased their charges by less than €3 a-head since 2005, according to figures released on Thursday. Hitting back at claims that they have increased passengers charges sharply in the last decade, industry body Airports Council International (ACI) said that its members spent more than €53 billion on boosting capacity since 2005.

Lobby group Airlines for Europe (A4E), whose members include Ryanair and Aer Lingus parent IAG, claim* that airports have increased their charges by 80 per cent over that time. However, ACI published research on Thursday showing that Europe's top 21 airports, including Dublin, increased their passenger charges by €2.85 a-head between 2005 and last year, which was 25.4 per cent. During that time they invested in new facilities, such as Dublin Airport's second terminal, and on improving security as new rules, including those governing liquids, aerosols and gels, came into force.

Airports and airlines regularly clash over passenger charges and infrastructure spending. When A4E launched in January, it singled out charges as one of the areas on which it intended to lobby the European Commission.

Second runway

The latest row comes as Dublin Airport is planning to build a second runway at a cost of €320 million. While airline customers such as Ryanair and Aer Lingus support the move, they have questioned why the cost has risen from €250 million since 2014. Dublin has cuts its passenger levies over the last two years following a decisio by the Commission for Aviation Regulation and the current maximum that it can charge is €9.87. It can add 59 cent per head to cover the runway cost.

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Director general of ACI Europe, Olivier Jankovec, argued that airports' investment increased capacity and connectivity, ultimately contributing to economic growth and job creation.

“A4E and its airline members behave like Alice in Wonderland, where money apparently grows on trees,” he said. “Whether we like it or not, European governments are no longer willing to pay for airport infrastructure – and EU rules now forbid State aid to large airports on competition grounds.

“This means that airlines need to come to terms with paying a fair share of the costs involved.”

Mr Jankovec argued that the €53 billion spent by airports helped achieve objectives set out in the EU’s aviation strategy. ACI’s figures cover 21 leading airports, including Dublin, Heathrow, Paris Charles de Gaulle and Orly, Madrid, Amsterdam and others.

Dublin and Europe’s other top airports have spent more than €53 billion on boosting capacity over the last decade.

The European division of Airports Council International (ACI) said on Thursday that the investment delivered an additional 168 million passengers over the period.

The council was hitting back at claims by lobby group Airlines for Europe (A4E) that airports have been increasing their charges by 80 per cent since 2005.

Director general of ACI Europe, Olivier Jankovec, argued that the investment increased capacity and connectivity, ultimately contributing to economic growth and job creation.

“These €53 billion were invested in strategic infrastructure without weighing on public finances,” he said.

Mr Jankovec added that the money helped achieve objectives set out in the EU’s aviation strategy.

ACI’s figures cover 21 leading airports, including Dublin, Heathrow, Paris Charles de Gaulle and Orly, Madrid, Amsterdam and others.

*This article was amended on June 10th, 2016 at 4.38pm

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas