In it's report the CAR blames falling passenger numbers at Dublin Airport for the increase in the fee, forecasting that it will be 2014 before numbers recover to their 2008 level.
The announcement by the regulator has drawn the wrath of the Consumer Association of Ireland, Aer Lingus and Ryanair, whose Stephen McNamara said :
"The sanctioning of further cost cost increase at the high cost Dublin Airport monopoly proves that Ireland's Aviation Regulator is useless. In recent weeks the Greek Government has reduced regional airport charges to zero, and the Spanish Government is rebating airport charges in the latter half of 2009 by 100% for those airlines like Ryanair, delivering growth. Airports all over the UK and Continental Europe are lowering their charges to reflect declining traffic and the recession. Only in Ireland is the Government owned airport in creasing charges, sanctioned by a useless Government appointed Regulator, at a time when the Government should be trying to stimulate, not strangle tourism.
Is it any wonder that traffic at Dublin airport has collapsed by 11% in the first five months of this year. Today's proposed increase shows that Ireland's Aviation Regulator is useless. In the UK, the Competition Commission has called for the break up of the BAA monopoly, having recognised that Regulation has failed to protect consumer interest. In Ireland, this useless Regulator has repeatedly failed to protect consumers, and today's cost increase is just the latest evidence of this abysmal failure".
At a time when the Ryanair cost model would appear to be one of the very few that is working in the aviation world and just one day after the carrier announced base cuts at Shannon and Dublin, directly related to the Irish Government's €10 travel tax it would appear certain that this latest increase in costs can only lead to further scaling back of airline operations at Dublin.
The entire 117 page report justifying the increase in charges can be viewed here
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