The Dublin Airport Administration (DAA) has filed a judicial appeal against the Commission for Aviation Regulation’s (CAR) decision to restrict the charge per passenger. The DAA argues that the additional funds would enhance security measures and contribute to the construction of new infrastructure.
Fair Pricing Strategy, Passenger Fees: LHR vs. CAA
The Civil Aviation Authority (CAA) in the United Kingdom decreased the passenger fees at London Heathrow Airport (LHR) last year. Initially proposed at €47 ($50) per passenger, the CAA requested a fee reduction from €37 to €30 per passenger in the years following next year until 2026, representing a 19% decrease. In response to the regulator’s decision, Heathrow Airport appealed, citing concerns about generating sufficient revenue to support necessary investments.
On the other hand, Delta, Virgin, and British Airways argued that Heathrow Airport was allowed to charge excessively due to the CAA’s flexibility. In its statement, the CMA said it intends to support the regulator’s decision. However, it has until October 17th to officially accept or reject the appeals.
Fair Price? The Dublin Airport: A Closer Look at the Current Scenario
A similar rise was requested for nominal passenger fees at Dublin International Airport (DUB) based on data gathered in early 2022. The airport was anticipated to collect between €13.04 and €14.77 per passenger. Still, the Commission for Aviation Regulation (CAR), a division of the Irish Aviation Authority, determined that they could charge a maximum of €7.59 per passenger, with an annual maximum fee of €8.50.
Kenny Jacobs, the Executive Director of the DAA, spoke about the difference between Heathrow and Dublin airport fees, saying:
“Dublin Airport already has the lowest charges of any capital city airport in Europe, and we aim to stay an Aldi or Lidl when it comes to airport charges. The prices currently charged by Heathrow and the price increase they sought shows how the other half lives.”
The DAA hopes the appeal will succeed, securing higher fees to enhance the airport and continue the capital investment plan. In 2019, 32.9 million passengers travelled through Dublin Airport, making it Europe’s 12th busiest airport. The CEO compared the airport to Aldi or Lidl, stating that it provides excellent service and value for the fees it imposes. As of 2022, InterVistas estimates that the airport supports 116,100 jobs and contributes approximately €9.6 billion ($10.2 billion) to the Irish economy, accounting for 2.3% of the country’s GDP.
What are your thoughts on this appeal? Would you consider this to be a ‘fair price’? Let us know what you think in the comments section!