Commission publishes documents relating to 2010-2014 airport charges determination

(09 Nov 2009)

The Commission on Friday 6 November published for comment a consultancy report by Booz & Co. on the operating costs associated with opening a new passenger terminal at Dublin Airport. The Commission has also today published a direction given to the Commission by the Minster for Transport, Noel Dempsey, T.D. under Section 10 of the Aviation Regulation Act 2001. Both of these documents are related to the Commission’s ongoing work towards the making of a determination on airport charges at Dublin Airport for the period 2010-2014.
On 18 June 2009 the Commission published a draft determination on airport charges. How the opening of the second terminal would affect the annual price caps was only partially addressed in the draft determination. This was due to the uncertainty regarding the appointment of an operator of certain services at T2 by way of competitive tender. At that time, there had not been a public announcement setting out definitively which parts of T2 operations would be included in the tender. Consequently, the Commission was unable to include in the draft determination an estimate of the costs the DAA may incur operating parts of T2. Instead for those parts of T2 operations put out to competitive tender, the Commission proposed that the annual price cap should exactly allow the DAA to recover the costs of the winning bid. It would then have fallen for the Commission to determine a reasonable amount for the costs of those operations conducted by the DAA that were not subject to a competitive process.
In considering the representations received in response to the draft determination, it was clear that many parties favoured an approach whereby the Commission would include the costs of T2 in its final determination. In addition it was not clear that the Commission would ultimately have been able to include the outcome of the tender process in its final determination. Consequently it commissioned consultants Booz & Co. to examine the operating costs associated with T2, including any costs implications for existing facilities. The Booz report includes an annex setting out the types of costs that may arise under alternative operating scenarios. The working assumptions used in Booz main report were chosen by the Commission on the basis of the analysis set out in the annex.
The Commission is seeking comments of interested parties on Booz’s report and how the Commission should treat it in making a determination on airport charges for the period 2010-2014. Parties may make representations to the Commission until 5.00 p.m. on Friday 20 November. Submissions may be addressed to Brendan O’Connor, Commission for Aviation Regulation, Alexandra House, Earlsfort Terrace, Dublin 2    

Commission Notice CN2/2009

Ministerial Direction

Booz & Co. report on operating exenditure

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