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July 25, 2022

Ireland’s CAR publishes draft decision on Dublin Airport price caps

CAR suggested a price cap of €8.68 in 2023, as well as €8.60, €8.29 and €8.48 for the following three years, respectively.

The Commission for Aviation Regulation (CAR) in Ireland has published its draft decision on Dublin Airport (DUB) passenger charges for the upcoming years until 2026.

The move comes after Dublin Airport operator daa sought to increase passenger charges from an existing cap of €8.24 to a higher range of €13.04 to €14.77 to meet increasing costs.

However, CAR suggested a price cap of €8.68 in 2023, as well as €8.60, €8.29 and €8.48 for the following three years, respectively.

This gives an average base price cap of €8.52 per passenger for the period to 2026, significantly below the figures sought by daa.

The final decision on the matter is expected later this year following consultation with other interested parties.

In a statement, CAR said that the proposed price cap is in the best interest of passengers and airlines. It will also enable Dublin Airport to make investments to boost its capacity and proceed with sustainability projects.

CAR deputy commissioner David Hodnett said: “Our proposed price will enable Dublin Airport to deliver a high-quality service for passengers.

“Like many other airports and aviation stakeholders, the faster than expected recovery in traffic has posed a significant operational challenge to Dublin Airport. This review covers the period 2023-2026, and we expect the service level to be at pre-pandemic levels throughout. This is reflected in our proposed service quality targets.

“We propose to allow sufficient levels of operating costs to achieve the high-quality service levels we have specified, with associated rebates and bonuses to incentivise delivery.”

Separately, daa said that it has noted the CAR’s proposed price caps and plans to review the report in detail.

Earlier this year, daa selected Atkins to provide a services framework for its buildings at Dublin and Cork (ORK) airports.

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