DAA launches incentives to encourage traffic growth
Ireland's Dublin Airport Authority (DAA) announced (07-Dec-2010) a major new financial incentive scheme to encourage traffic growth at Dublin, Cork and Shannon airports next year. The Grow Incentive Scheme will mean Dublin, Cork and Shannon airports will effectively waive all airport charges for passenger traffic once an overall threshold of 23.5 million passengers is reached during 2011. Once the passenger target of 23.5 million for the three airports is surpassed, the DAA will subsequently rebate the airport charges for all of the additional passenger traffic to its airline customers. The threshold of 23.5 million passengers for next year is equivalent to the throughput across the three airports this year, normalised for the exceptional impact of the volcanic ash crisis. Rebates will be based on each airline's proportion of the total traffic across Dublin, Cork and Shannon airports during 2011. Rebates will be paid to airlines in early 2012 for all passengers over and above the 23.5 million threshold. The DAA also offers financial supports to stimulate the launch of new short-haul and long-haul routes from the airports. Under these support schemes, airlines receive discounts for three or five years after the launch of a new route, including a 100% discount on all airport charges for the first year of operation. [more]
Ireland's Minister for Transport Noel Dempsey welcomed (07-Dec-2010) the DAA's plans and is hopeful that capacity will now be re-instated by airlines, particularly on our key strategic routes, for the benefit of tourism, trade and economic development generally. [more]
Dublin Airport Authority: "This innovative scheme will encourage airlines to maintain and grow their traffic from Dublin, Cork and Shannon airports next year. Any additional traffic over and above the 23.5 million threshold will be free of airport charges. We estimate that an increase of 1 million passengers above the 23.5 million target would be worth about EUR10 million to airlines in terms of airport charges waived. Irish airport charges are already highly competitive and the addition of these new incentives makes Dublin, Cork and Shannon airports even more attractive for business. The combination of the Government's decision to reduce its aviation tax, coupled with the DAA's rebate of all airport charges for extra traffic delivered to our airports next year provides a powerful incentive to stimulate passenger traffic into and out of Ireland during 2011," Vincent Harrison, Director of Strategy. Source: Dublin Airport Authority, 07-Dec-2010.
Irish Government: “I believe that today’s announcement by the DAA is an innovative response to the announcement in today’s budget by the Minister for Finance on the reduction in the level of the air travel tax. While Dublin Airport reported a 1% growth in passenger traffic in October last, the position in Cork and Shannon has not been so positive. All stakeholders have a role to play in reversing the decline in the fortunes of the Irish economy and responses such as this incentive announced today by the DAA are to be welcomed,” Noel Dempsey, Minister for Transport. Source: Irish Government, 07-Dec-2010.