Users of Dublin airport in 2019 pay the daa up to €9.65 each time they use the airport’s infrastructure. Flying from Dublin to Stansted and back for example incurs four sets of aircraft charges, as each of the airports’ facilities are used twice.
Last month, the Commission for Aviation Regulation (CAR) proposed as part of its draft determination on Dublin airport charges that the price cap be set at €7.50 per passenger for the next five years (2020-2024). The press statement issued by the CAR stated that the proposed new price cap included all of the airport’s future investment plan, costing some €1.8bn. The CAR invited the views of interested parties by a deadline of 8 July.
The daa’s responding press statement expressed extreme concern at the proposed price cap especially because in the daa’s view the lower average charge would not allow the airport operator to implement its investment programme. On 14 June, the Irish Times reported that the airport CEO, Mr. Dalton Philips, had “stood down” work on new investment at the airport in protest at the proposed reduction in the price cap, seeking instead that the price stay close to €9.65 in the next regulatory period. Mr. Philips also set out the daa view on the Marian Finucane Show last Sunday morning (inter alia claiming the lower price cap would lead to a ‘yellow pack’ airport).
On the face of it, one might easily wonder whether higher (investment) spending could be funded from lower charges. This post is an analysis of that aspect of the proposed airport price cap.
Continue reading “Are lower airport charges consistent with a larger investment budget? Actually, under exceptional demand growth, they’re unavoidable.”
Call for Submissions
The Barrington Medal is awarded annually by the Council of the Statistical and Social Inquiry Society of Ireland under the auspices of the Barrington Trust (founded in 1836 by the bequest of John Barrington). The award, which includes both a silver medal and €1,000, is intended to recognise a promising new researcher in the economic and social sciences in Ireland. This will be the 171st anniversary of the lecture series and the recipient will be the 130th Barrington Lecturer. A list of recipients over the past 35 years is included in the attached call for submissions.
The lecture should be based on a paper of not more than 7,500 words addressing a topic of relevance to economic or social policy and of current interest in Ireland. In treating the issue of economic or social policy, the paper may either report the findings of a statistical research study dealing with some aspect of the problem or deal with the underlying theoretical considerations involved, or preferably combine these two approaches. It should be written in a manner that makes it accessible to non-specialists in the area. More technical material may be included in an appendix. The paper is published in the Journal of the Society, so it should not have been published before (nor should it be published subsequently without the prior consent of the Council of the Statistical and Social Inquiry Society of Ireland).
Candidates, who at the time of their submission must be not more than 35 years of age, should at least submit a detailed abstract of approximately 1,000 words on the proposed lecture, with preference being given to full papers. A short CV and the name of a proposer who is familiar with their work should also be submitted. Entries will be accepted until 31st August, 2019 and should be sent to the Honorary Secretaries of the Society via email, using the email address email@example.com.