Ireland’s Dublin Airport Authority (DAA) stated the 40% rise in passenger charges to be introduced before the end of the year will not be high enough to allow it to operate in a “sustainable and financially viable manner” (Irish Independent, 09-Jun-2010). DAA argued to the Commission for Aviation Regulation (CAR) that the new charges would not increase its funds from an operation-to-debt ratio to an investment-grade ratio until 2012. CAR last year decided to raise the maximum charge per passenger to be levied by the DAA at Dublin Airport from EUR7.39 to EUR10.44 next year. DAA, Ryanair and Aer Lingus all appealed the decision on different grounds. CAR also commented that the DAA’s 'BBB' credit rating was sufficient for it to operate. The Aviation Appeals Panel has also asked CAR to consider a means by which the recovery of increased overheads from the “over-specification” of retail space in Terminal 2 could be postponed until “commercially justified”. T2 is estimated to have approximately 40% more retail space than other international airports. Aer Lingus has also argued the retail space would not be used efficiently for the foreseeable future as passenger traffic is insufficient.
Dublin Airport Authority states 40% rise in passenger charges not sufficient
You may also be interested in the following articles...
Ryanair's best margin since 2005 illustrates the success of 'Always Getting Better' programme
Ryanair achieved another strong increase in net profit in FY2016, following up on FY2015's 66% growth with a 43% gain. Passenger growth accelerated to 18% – its highest rate for seven years, helped in no small measure by a second successive 5ppt gain in load factor, taking it to 93%.
This was achieved with only a 1% fall in average fares, demonstrating the success of the customer service and network improvements that Ryanair has introduced over the past two years under its 'Always Getting Better' programme. Overall, Ryanair managed the rare combination of an increase in revenue per seat and a fall in cost per seat (although the latter owed much to lower fuel prices). This gave it its highest operating margin since FY2005.
Looking into FY2017, Ryanair expects profit growth to slow down, but at a figure around 13% it still aims for a double-digit rate. Moreover, it is likely to retain its position as the airline with Europe's highest operating margin.
CityJet: regional airline consolidator is re-energised & refocussed after second change of ownership
It is just over six months since CityJet chairman, Pat Byrne, and a group of private investors bought the airline from previous owner Intro Aviation. Meanwhile, CityJet has received its first two Sukhoi Superjets this summer. With 13 more scheduled for delivery by 2018 they will be replacements for its ageing BAE146 fleet at London City Airport, but the Superjet first needs steep approach certification. This will be important in restoring profitability to CityJet's refocused core network at London City.
In addition, CityJet has a growing presence in contract flying for other airlines. It inherited an Air France wet-lease operation at Paris CDG from its days under Air France-KLM ownership and acquired an SAS regional operator a year ago. Recent reports of possible consolidation involving CityJet in the European regional contract flying space demonstrate that it now has a higher profile and greater credibility than at any time for many years.
Although unconfirmed, these reports link CityJet with another SAS regional operator, Cimber, and with Stobart Air, which operates wet-lease capacity for Aer Lingus and Flybe. Even if they do not come to fruition, reports of such transactions are a sign of CityJet's increased status and revitalisation after years of near invisibility as part of Air France-KLM.