The aviation regulator has turned down Dublin Airport Authority's request for a 50% increase in passenger charges. The rise would have been used to fund the airport's €1.2 billion expansion plan to tackle overcrowding. The regulator has granted a 23% rise on passenger fees.
The DAA said it was 'extremely disappointed' by the decision.
The DAA's expansion programme announced last week was designed to cope with overcrowding at Dublin Airport, where passenger numbers are expected to increase to 30 million from the current 18 million.
The centrepiece of the plan will be a new terminal. The authority said last week it would need a 50% increase in passenger charges to pay for the plans.
The 23% increase granted today will apply from January for the next four years. Regulator Bill Prasifka says he has not had time to consider the DAA's latest plans. He had been considering an earlier €1 billion expenditure proposal, but decided to accept only 85% of these costs. He has, however, left the door open to review his decision.
The DAA said the ruling means it will be unable to deliver all the facilities needed to relieve the current chronic congestion problems at Dublin Airport.
'The DAA will provide the Government with a full review of the impact of the Regulator's decision on Dublin Airport as soon as it has had an opportunity to study the decision in detail,' said chief executive Declan Collier.
Ryanair criticised the regulator's decision, calling the increases 'unnecessary and unjustified', while employers' group IBEC said the ruling was likely to add to the confusion and uncertainty regarding the development needs of the airport.
The Irish Hotels Federation said it was now the Government's responsibility to ensure that any difficulties created by today's decision would not delay the delivery of a new terminal by 2009 and Pier D by 2007.
Transport Minister Martin Cullen said it would be inappropriate for him to comment on the details of the regulator's determination, but his department would be discussing the delivery of additional infrastructure with the DAA after it had considered today's ruling.
