DAA expects decline in passengers due to recession

THE DUBLIN Airport Authority (DAA) has told the aviation regulator that it expects passenger traffic at Dublin airport to decline both this year and in 2010 due to the slump in the economy.

Dublin airport handled more than 23 million passengers in 2008, a record figure. However traffic is down so far this year, with a decline of 12 per cent in February alone.

In a submission just filed with the regulator in relation to its proposed capital investment at the airport up to 2014, the DAA stated: “The rate and level of change of the economic climate over the past six months is a vivid reminder of the difficulties of planning long-term infrastructure. It now appears that 2009 and 2010 are likely to show a fall in passenger numbers.”

The DAA’s projections on future passenger traffic at Dublin airport could be made worse today if, as expected, Ryanair announces more cuts to services.

Ryanair recently said it would ground four aircraft at Dublin airport over the summer with the loss of 200 jobs as a response to the Government’s plan to introduce a €10 air travel tax at the end of March. The airline declined to comment yesterday.

DAA plans to scale back its original €800 million investment programme, with a proposed second runway costing €350 million being postponed until the airport shows signs of passenger growth.

However, the DAA has made provision to spend up to €8 million on a “voluntary house buy-out scheme” for residents whose properties are close to the airport and would be affected by aircraft noise generated by the new runway.

DAA is also planning to press ahead with a €40.5 million investment in a new multi-storey car park close to the existing terminal and the new Terminal Two (T2).

This would provide 1,706 short-term car park spaces, to be delivered on a phased basis in 2010 and 2011. It would also provide 456 spaces for car hire groups.

DAA said it expects 40 per cent of passengers using the existing terminal to switch to T2, which will open in 2010.

The DAA is also planning to spend €4 million upgrading the holding area for taxis. It wants to increase capacity from the current 140 vehicles up to 450, with associated canteen and washroom facilities. DAA is also hoping to get clearance from the aviation regulator to spend €23 million on patching up the existing runway surface, which was laid in 1982 and is showing signs of “distress”.