The chief executive of the Dublin Airport Authority has described as “absurd” the decision of the regulator to set handling fees at the airport at a level he claimed is almost 60% below the market price across Europe.

The Commission for Aviation Regulation announced an average fee per passenger of €7.87 over the next five years, 18% less than DAA’s pricing proposal of €9.65.

DAA boss Dalton Philips (pictured) stated: “Our flat pricing proposition would have funded almost €2 billion of much-needed investment at Dublin Airport to deliver new boarding gates, aircraft parking stands, an upgraded security area, and improvements to other customer facilities.” 

“This flat pricing plan and was supported by the vast majority of airline customers during DAA’s extensive consultation process. The final price that CAR has set does not reflect the reality of the market. Dublin Airport is an efficient operator by European standards with extremely low airport charges.”

The CAR's decision also came under attack from Ryanair, but from the opposite direction. Chief commercial officer David O’Brien described the decision as disappointing and a bad day for passengers.

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“Dublin Airport already charges among the highest passenger fees of any of the airports Ryanair flies to in Europe. Ryanair believes that the original ruling to fix Dublin Airport’s charges at €15 per departing passenger for the next five years was already a generous settlement," said O'Brien.

Perverse

“Today’s perverse and anti-consumer final determination by the CAR allows Dublin Airport to increase its charges over the next five years while continuing to extract monopoly profits from its high airport fees and its very high commercial revenues coming from its car parks, retail, restaurants, and other outlets.”

Dalton Philips maintains that higher charges are necessary to fund DAA’s development of extra facilities such as the new north runway currently under construction.

“I can think of no other Irish product or service that is 60% cheaper than the equivalent in the UK or Continental Europe. This shows the absurdity of the regulator’s decision. This is what happens when economic theory trumps the real world," said Philips.

“This determination is a disaster for passengers and for the Irish economy, as we won’t be able to pay for the new and improved facilities that are required at Dublin Airport. It is meaningless for the regulator to claim that it supports investments in new facilities while at the same time failing to provide the money needed to build them.

“Contrary to the regulator’s claim, airlines saving money does not benefit the Irish economy. Any reductions in airport charges have been going to the shareholders of privately-owned airlines, the majority of which are located overseas. There is no evidence that reductions in charges are passed onto consumers in the form of lower ticket prices.”

Ryanair’s O’Brien counters: “If Dublin Airport can’t build its facilities, then a competing Terminal 3 should be allowed to do so. If there were competing terminals at Dublin Airport, DAA wouldn’t need regulatory price increases - they would be competing with the second terminal to lower airport fees.”