DAA makes €1.5m rebate to airlines

THE DUBLIN Airport Authority (DAA) has rebated €1

THE DUBLIN Airport Authority (DAA) has rebated €1.5 million to 30 airlines that increased their passenger traffic in Dublin last year under a growth incentive scheme operated by the airport manager.

Among those receiving rebates were Aer Arann, Aer Lingus, Etihad, Lufthansa, Norwegian, SAS, Swiss and US Airways.

No rebate was paid to Ryanair, the DAA’s second-biggest airline customer at Dublin airport, as it did not grow its services there last year.

Earlier this week, Ryanair signalled it might impose additional capacity cuts to its services at Dublin and Cork airports due to a disagreement with the Government and the DAA over the €3 travel tax and airport charges.

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A new three-year growth incentive scheme was introduced by the DAA last year to stimulate traffic growth at Dublin, Cork and Shannon airports. It rebates passenger service charges to airlines for traffic growth at any of the three airports once the threshold of the previous year has been achieved.

Airlines that increase their passenger numbers gain refunds based on their contribution to the overall growth.

Passenger numbers in Dublin rose by 2 per cent to 18.7 million last year, which resulted in the refunds being paid.

No rebates were paid in relation to Cork or Shannon as traffic did not grow at either airport in 2011.

“This scheme was designed to encourage growth in passenger numbers and we are delighted to be paying a rebate of €1.5 million to the airlines that grew their business from Dublin last year,” said Vincent Harrison, the DAA’s director of strategy.

Mr Harrison said international traffic was up 3 per cent last year, as domestic travel declined with a number of the government-funded Public Service Obligation routes terminated. “Foreign originating inbound traffic was the best performing sector of the market in 2011,” he said.

Ciarán Hancock

Ciarán Hancock

Ciarán Hancock is Business Editor of The Irish Times