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Aviation regulator’s decision will result in a negative impact on Irish Economy

Posted: 28 October 2019 | | No comments yet

The Commission for Aviation Regulation’s decision to lower flat pricing for Dublin Airport has left the airport questioning if planned developments will continue.

The publication of the Commission for Aviation Regulation’s (CAR) Final Determination on Dublin Airport’s charges for 2020-2024 has resulted in an outcry from DAA, Dublin’s airport authority, following the decision to lower Dublin Airport’s flat pricing proposal by 18 per cent.

After discussing the proposal with airlines 12 months ago, the airport set the flat price at €9.65, but the Commission for Aviation Regulation have lowered the price by €1.78, to €7.87. The proposition, which was supported by a vast majority of airlines during extensive consultation, was intended to fund almost €2 billion of investment at Dublin Airport with the aim of delivering new boarding gates, aircraft parking stands, an upgraded security area, and improvements to other passenger facilities.

The price that has been set by the Commission for Aviation Regulation does not accurately reflect the reality of the market, as Dublin Airport is an efficient operator by European standards. DAA have announced their intention to study the Commission for Aviation Regulation’s report in full to assess its effect on the investment plans formerly proposed and decide whether or not it will appeal the Regulator’s Final Determination.

Dalton Philips, DAA’s Chief Executive, said: “Dublin Airport’s prices are already 30 to 40 per cent lower than its European peers and the Regulator’s decision will mean Dublin’s prices will now be almost 60 per cent lower than the EU market price. Forcing Dublin Airport to charge so far below the market price will have a hugely negative impact on our ability to finance the required investment programme at Dublin Airport. CAR’s decision will also hurt Cork Airport, Shannon Airport and other regional airports, as the price set in Dublin is a reference point for other airports throughout the country.”

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