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DAA halts discounts for new routes

Dublin Airport - Change 'to mitigate congestion'
Dublin Airport - Change 'to mitigate congestion'

The Dublin Airport Authority says it is suspending a scheme which offered discounts to airlines starting new routes from the airport.

In a statement, the DAA said no new applications under the new route incentive scheme would be processed from close of business on Tuesday, pending a review.

The authority said the review was a response to 'planning and other uncertainties' relating to developments such as the planned second terminal, the extension to the existing terminal and other facilities.

Dublin Airport director Robert Halliard said the body had to look at all available measures to mitigate congestion at peak periods. He said the airport's infrastructure was under pressure due to strong passenger growth, adding that it also faced obstacles to plans to transform the airport.

The new route incentive scheme was introduced in 2005, and offered airlines a full discount on standard airport charges in the first year of a new route to a destination outside the EU. The discounts fell to 75% and 50% in the second and third years respectively.

Last month, the Commission for Aviation Regulation decided not to increase the cap on charges at Dublin Airport, saying the forecasted number of passengers using the airport between 2006 and 2009 would provide sufficient funds to cover the DAA's capital investment plan.