Press Releases 2007
Regulator's Complex Proposals Provide Insufficient Clarity for DAA?s Required Investment Programme at Dublin Airport
May 21 2007
The draft decision published by the Commission for
Aviation Regulation (Commission) this morning
is highly complex and represents a radical change
of approach on the part of the Commission regarding how and when any investment in
new airport infrastructure by the DAA
is remunerated appropriately.
As a consequence, the DAA will take time to review the decision in full and
will seek clarification from the Commission as to how its proposed new funding
mechanisms will impact on the delivery of urgently-needed new facilities at
Dublin Airport.
As an initial response, the DAA is disappointed the Commission has not
approved the modest immediate increase in airport charges that would have
provided the full funding clarity required to proceed with the building
programme at Dublin Airport as soon as the planning appeals process is
complete.
The DAA welcomes the Commission’s findings that the vast bulk of the
company’s near-term, €1.2bn investment programme for Dublin Airport is both
necessary and reasonably-priced. But it questions why this investment should be
remunerated by a prospective larger incremental increase in airport
charges for users from 2009, rather than the clarity of a smoother phased
increase, commencing this year.
The DAA must borrow very significant sums of capital to fund Dublin Airport’s
second terminal and other passenger and airfield facilities. It will now engage
with the Commission to establish how the company and potential lenders can be
assured that the deferred increase in airport charges will occur and will
remunerate their investment appropriately.
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