Barry O’Halloran
The Republic's aviation regulator has told Dublin Airport Authority (DAA) that it must cut its passenger charges by almost 19 per cent over the next five years to € 8.68 from € 10.68 in a move that could help to cut air fares.
The Commission for Aviation Regulation (CAR) today ruled that passenger charges at the airport must be cut by 4.2 per cent a-year between now and 2019.
Its determination means that the maximum that the DAA can charge airlines for each passenger will be cut to € 10.30 next year from its current level of € 10.68.
From then until 2019, the cap as it is known, will fall to € 8.68, a total reduction of 18.7 per cent over five years.
Airlines pass the charges on to their customers, a reduction in these costs gives them scope to pass on the savings.
The move is likely to anger the State-owned airport company, which wanted to be allowed to increase its charges in line with inflation so it could fund what it says is vital capital spending.
However, the CAR said that its ruling gives the DAA the scope for € 340 million spending over the next five years, 50 per cent higher than it has been in the last four years. The regulator is also giving the airport an allowance for a new runway if it is needed.
The CAR's ruling says that DAA's costs are lower since it last ruled on charges in 2009. Commissioner John Spicer said: "Our determination sets a target for DAA in 2019 that entails passing cost savings – lower operating costs and lower financing costs – to users".
Mr Spicer said that the airport would still raise €1.8 billion in commercial revenues and airport charges over the next five years.
