The Aviation Regulator has decided to leave passenger charges at Dublin Airport unchanged for the next two years, despite calls for an increase from the Dublin Airport Authority which wants more money to fund the new terminal.
The regulator said the DAA's financial situation had significantly improved because of larger passenger growth than expected.
He said the DAA would still be able to finance the €570m new terminal, despite charges remaining at €6.34 per passenger. But he said passenger charges would increase after 2009 to help fund the new terminal.
Today's decision is a draft determination and final decision will be known in the coming months.
In an initial response, the DAA said it was disappointed the regulator had not approved what it called the 'modest immediate increase' it was looking for.
But the authority said it would take time to review the decision in full and would seek clarification on how its funding proposals would affect the delivery of new facilities at the airport.
The DAA questioned why its investment programme should be paid for by a rise in charges after 2009 rather than 'a smoother phased increase' from this year. It also said it would seek assurances that the deferred increases would occur.
Ryanair accused the regulator of failing to put passengers ahead of the DAA's profits. Dublin Airport's traffic is way ahead of forecast, so the maximum cap on passenger charges should be reduced to take account of these bonus passengers,' it said.
The airline also said the regulator had 'rubber-stamped' the DAA's capital spending.
