Dublin airport upgrade on hold as passenger charge increase rejected
30.09.05
A €1billion upgrade of Dublin Airport was put on hold last night, after an increase in passenger charges to cover the cost of a new terminal was rejected. Dublin Airport Authority officials wanted a 50% increase in fees to pay for a massive expansion plan, but the Commission for Aviation Regulation rejected the request.
Instead of a 50% increase in charges, the Commission agreed a 23% rise in charges from January 2006. This would increase costs to €6.14, but leaves prospects for the €200m second Dublin terminal in jeopardy.
Declan Collier, DAA chief executive, said: 'The real losers here are passengers, the other users of Dublin Airport and the Irish economy as a whole. We presented a comprehensive, integrated and progressive development plan for the airport but at this price there are profound implications for its delivery.'
'As a result, the country's key international gateway will remain constrained, our passenger service levels will continue to deteriorate and the operational efficiency of our airline customers will be affected.'
Authority bosses have warned the airport is reaching bursting point and insisted charges must increase to €7.50 a head to pay for the 10-year expansion plan and cater for 30 million passengers a year by 2015. They now fear there is no way the chronic congestion problems can be relieved.
The DAA insist that €1.2bn is needed to bring the airport up to global standards and the move already had the support of Government and of business and tourism organisations including the Irish Hotels' Federation, IBEC and the Chambers of Commerce of Ireland. DAA chairman Gary McGann conceded that officials may have to go back to the drawing board.
The Commission for Aviation Regulation claimed the DAA had not given enough time for the expansion plan to be fully assessed but that its decision, which is scheduled to last until 2009 could be reviewed.
The Authority said it will give the Government a full review of the impact of the Regulator's decision as soon as it has had studied the decision in detail. But the decision may also give entrepreneur Ulick O'Connor added incentive to push on with his plans for an independently owned and run terminal.
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