Dublin Airport set to breach 32m passenger cap this year
Dublin Airport looks set to breach its cap of 32 million passengers this year, its operator daa has warned.
In a statement this morning. the company said that despite efforts to dampen airline demand, it now forecasts that passenger numbers in 2024 will be closer to 33 million.
Daa said 3.46 million passengers went through Dublin Airport’s terminals in August, making it the busiest month ever in its 84-year history.
That brought the total number of passengers using the facility so far this year to 22.7 million, 5.5% ahead of last year, a trend which it said is set to continue into September.
Daa said a dampening of demand in late autumn is expected due to a decision by the aviation regulator to cap winter slot allocations, limiting passengers for the season to 14.4 million.
It added that some airlines have already decided themselves to reduce their operations because of uncertainty around the passenger cap.
Daa has also made extensive efforts to reduce passenger numbers to comply with the limit, it claimed.
These include the removal of an incentive scheme for airlines and the launch of a scheme to encourage carriers to grow capacity at Cork instead of Dublin.
It said its actions have reduced passenger numbers by approximately 650,000.
However, it is now forecasting for the first time that it will breach the cap this year, by as much as 1 million passengers.
“Overall, I’m optimistic about the future except for one thing: the fact that growth at Dublin Airport is now being stalled by an outdated passenger cap, a very lengthy planning process and a lack of joined-up thinking on critical infrastructure in Ireland,” said Kenny Jacobs, chief executive of daa.
“This leaves Dublin Airport caught between a rock and a hard place. We want to grow so we can continue to connect Ireland with the world and support FDI, tourism and jobs.”
“But while we wait for planning to be granted, we are doing everything we can to comply with existing planning conditions.”
The cap was put in place in 2007 as part of the planning permission granted for the second terminal at the airport and restricts passenger numbers to 32 million a year.
If it is breached, it is unclear what if any consequences the airport could face as a result from Fingal County Council, which imposed the cap.
Daa has submitted an infrastructure application for planning permission which if approved would enable it to grow passenger numbers to 40 million a year.
But that is expected to take some time to get a decision on, so the airport operator is also preparing a separate application that would seek to lift the cap only, without the additional infrastructure.
“It is in no one’s interests to curtail tourism and investment at a time when so much public and private money is being spent to do the complete opposite,” Mr Jacobs said.
“We are a small, open, island economy on the edge of Europe that has always punched above our weight but we need more joined-up thinking in the development of critical infrastructure.”
“It’s time to all come together to realise an ambitious vision of Ireland that sets us up for the future. This includes support for growth at Dublin Airport, so we can keep delivering for Ireland, and growth at Ireland’s great regional airports at Cork, Shannon, Knock, Kerry and Donegal.”
Speaking on RTÉ’s Morning Ireland, Kenny Jacobs warned there will be a loss of aviation jobs next year due to the inability to increase the number of flights into Dublin Airport.
In relation to what the Government can do on the issue, he said this issue goes beyond transport.
“I think what needs to happen is faster planning. I also think what needs to happen is more joined up infrastructure thinking that gives Ireland the infrastructure with that we need,” he stated.
He said he welcomed the recent news by the Taoiseach that there may be a Department of Infrastructure set up.
“I think this would be a good thing, but ultimately this is about planning, not just transportation, and it’s about the speed at which Ireland moves to get critical infrastructure built,” he said.
Mr Jacobs said that airlines are annoyed about the cap as they want to grow at Dublin.
On travellers possibly being impacted by flight availability, he said it is not an issue in the coming months.
“The slots for the winter have been determined. The two big carriers here, Aer Lingus and Ryanair, have the same slots that they had last year, so I don’t expect any difficulty in the coming months in terms of people getting home for Christmas,” he said.
He also said he does not expect fares to be that much higher than last year, adding that it will be the summer of 2025 when a million passengers will come out and fares will go up.
“There may be one or two or several more routes that will fall off, so there’ll be a drop in connectivity,” he said.
“We are flagging no issue in the short term, but a significant impact next year,” he added.
He also acknowledged that daa should have tackled the cap sooner.
Environmentalists and some local residents are opposed to any further growth of Dublin Airport because of the impact it would have on emissions and also on noise.
Ryanair and other airlines are pushing hard for the cap to be lifted, saying it is impacting on their ability to grow their businesses at the airport.
Recently Ryanair warned the cap could lead to there being a million less passenger seats in and out of Dublin Airport next summer and that it could push up flight prices between Dublin and London considerably over Christmas.
CEO Michael O’Leary has repeatedly called on the Minister for Transport to act by removing the cap.
But Eamon Ryan has reiterated many times that he cannot legally intervene in what is an independent planning process.
Dermot Crowley, the chief executive of Dalata Hotel Group, said the passenger cap at Dublin Airport is an important issue for its business, and he remains hopeful that it will be resolved in the short term.
“The ability of Dublin Airport to continue to increase passenger numbers is critical to support further growth in the Irish economy, particularly in the hospitality and tourism sectors which are a key source of employment for the island of Ireland,” he added.
Dalata owns the Clayton Hotel and Maldron Hotel brands and is the biggest hotel group in Ireland.
Article Source – Dublin Airport set to breach 32m passenger cap this year – RTE
