Under the new Dublin Airport Growth Incentive Scheme, the DAA will waive all airport charges for passenger traffic once a threshold of 19.5 million passengers has been reached.
The 19.5 million threshold is 5% lower than Dublin Airport’s throughput last year of 20.5 million; it is also the basis on which the aviation regulator set its airport charge for this year. DAA recently entered into a new five-year regulatory period, with charges determined to 2015. The Commission for Aviation Regulation (CAR), the independent body which sets airport charges at Dublin, has set the maximum passenger charge at the airport at €9.32 for 2010, which – although technically an increase – remains significantly lower than the average passenger charge levied by comparable European airports.
Under the new scheme, Dublin Airport Authority (DAA) will rebate the full amount charged for each passenger over and above the 19.5 million threshold set.
“Airport charges at Dublin are hugely competitive compared to our European peers and the addition of these new and expanded financial incentives makes Dublin an even more attractive location,” said Robert Hilliard, Dublin Airport Director. “We want to work together with all of our airline customers to maximise the level of traffic at Dublin.”
New route support
The Commission for Aviation Regulation, the independent body which sets airport charges at Dublin, has set the maximum passenger charge at the airport at €9.32 for 2010, which – although technically an increase – remains significantly lower than the average passenger charge levied by comparable European airports.
DAA believes in sharing the risk with airlines when launching services and sees this latest incentive scheme as another potential investment in new routes. The support mechanisms at Dublin Airport have been substantially expanded to encourage airlines to grow their operations. The route support scheme for short haul routes previously focused on routes not traditionally served from the airport, but has now been extended to cover any new qualifying route from Dublin (the route must be a direct service that is promoted and sold as a city/destination that is not already served from Dublin). Airlines receive a 100% discount on airport charges for the first year of operations on any new route, a 75% discount during the second year and a 50% discount in the third year. Meanwhile, the existing long haul route support scheme will continue – it offers discounts for the first five years of operations on a new route – with discounts reducing incrementally from 100% to 25% between years one and five.
“This is a broad package of generous incentives and I would urge all of our customers to examine how these schemes can benefit their individual operations at Dublin,” said Hilliard. “If airlines maintain last year’s traffic, one million travellers will pass through Dublin Airport free of charge in 2010.”
In what has been a very difficult time for the Irish economy, DAA’s new strategy provides a welcome boost to Ireland’s tourism and export sectors, particularly in light of Ryanair’s announcement that it will cut its Dublin operations by up to 20% this summer. With the aim of attracting airlines, it is anticipated that the scheme will increase connections for business and leisure travellers, as well as expanding cargo connections for importers and exporters.
