Richard Bruton
Ceist:194. Deputy Richard Bruton asked the Minister for Transport if charges at airports are subject to oversight or approval to prevent overcharging by near monopoly operators. [3872/23]
Amharc ar fhreagraThursday, 26 January 2023
Ceisteanna (194)
Freagraí scríofa
In accordance with Aviation Regulation Act 2001, as amended, the Commission for Aviation Regulation (CAR) has statutory responsibility for setting maximum airport charges at Dublin airport taking account of national aviation policy. Dublin Airport is the only airport in Ireland subject to economic regulation due to its dominant position in the market.
CAR employs a method of regulation known as price-cap regulation. A cap on the total revenues per passenger that the airport may collect is set in advance. The price cap is derived from a series of inputs known as ‘regulatory building blocks’. These blocks take account of the airport operator’s cost base, future development and investment plans and its income streams, including from commercial operations in and around the airport. The sum of these building blocks is divided by a forecast of passengers (also a building block) to give the maximum per passenger airport charge.
This independent regulation is intended to serve as a proxy for competition and to require the regulated entity (daa) to do things both in terms of pricing and quality of service provision at Dublin Airport that it would almost certainly not choose to do given a free hand.
The overriding strategic objective is to ensure that current and future airport customers are presented with choice, value and quality services which also meet the highest international safety and security standards.