Latest news with #passengercap
Irish Times
07-07-2025
- Business
- Irish Times
US may limit Aer Lingus flights because of Dublin Airport passenger cap, industry group warns
The Government may have just months to axe the 32-million-a-year cap on passengers at Dublin Airport before the US limits Aer Lingus flights to its airports, a North American industry group warns. Airlines for America (A4A), whose members include US and Canadian carriers that fly from the US to the Republic, maintains that the passenger limit on Dublin Airport breaches European Union-North American open-skies air-travel treaties. According to Keith Glatz, A4A's senior vice-president of international affairs, the US could respond to the cap by limiting Irish airlines' access to the US. Aer Lingus is the only Irish carrier offering regular scheduled transatlantic flights. Mr Glatz explained that he was not speaking for the US government, but noted that 'typically' Washington's department of transportation can respond to an illegal breach of the treaty by limiting the number of cities to which a country's airlines can fly. READ MORE He cautioned that the time left for the Irish Government to end the cap and avoid such a sanction was narrowing. 'We're talking about a couple of months to get this done, and not a year,' Mr Glatz said. The pressure from the US administration on the Government to act is likely to increase as time progresses, he predicted. [ Dublin Airport passenger cap to be breached this year, says DAA Opens in new window ] Mr Glatz stressed that A4A believed that Darragh O'Brien, Minister for Transport and the Government, wanted to keep a pledge to lift the cap and ensure the Republic complied with air-travel treaties. He also maintained that his organisation had good relationships with both Mr O'Brien and the Department of Transport. 'We're working closely with them, they're working with the US government, they're moving, but slower than we would like them to move,' he said. How the wealthy are buying up land to avoid inheritance tax Listen | 22:03 'They understand that they have to do this, and that now is the time to get this done, before a small issue becomes a larger, international dispute.' A4A believes that legislation to lift the cap is drafted, meaning that it is simply a matter of time before the Oireachtas passes it and the cap is lifted. Planners imposed the limit in 2007 as a condition of allowing airport operator, DAA, to build a second terminal at Dublin, to address fears of traffic congestion. Shortly after taking office in January, Mr O'Brien confirmed that he had sought the advice of Rossa Fanning, Attorney General, on resolving the row through legislation. The Minister subsequently predicted this would be ready by the autumn. A department spokesman said on Monday that the Minister was examining a range of issues relating to the passenger cap and was continuing to 'engage with key stakeholders'. The High Court suspended the cap's implementation when it referred questions raised in a legal challenge by airlines to the European courts. A4A is a party to that challenge, initiated by Aer Lingus and Ryanair, but Mr Glatz said that the referred issues related to European and Irish competition law, not to European Union-North American air-travel treaties. He argued that those treaties made possible the Republic's relationship with the US, worth trillions of dollars, and predicted that lifting the cap would spark further growth. Aer Lingus did not comment on any likely sanctions but the airline has consistently warned of the economic damage that it threatens.
Irish Times
04-07-2025
- Business
- Irish Times
Dublin Airport passenger cap to be breached this year, says DAA
Dublin Airport will exceed the 32 million passenger cap this year, the airport's operator DAA said on Friday, after experiencing its busiest-ever June with more than 3.5 million passengers travelling through the hub. The State-owned company said it will have to turn away 4 million passengers this year if it is to comply with the cap, which was imposed by An Bord Pleanála in 2007. The cap was breached last year when 33.3 million passengers came through the airport. In June, some 3.5 million people travelled through the airport, up 5.8 per cent on the same month last year. US passengers were up 4 per cent year-on-year, DAA said, and Sunday June 29th was Dublin Airport's busiest ever with 129,000 passengers. READ MORE DAA also said on Friday that Fingal County Council's decision to serve an enforcement notice on the airport relating to the cap last month has caused 'considerable concern' among stakeholders. The airport operator said it joins Ryanair, Airlines for America, IATA and other stakeholders in 'urging the Government to share proposals to resolve the cap impasse before the Dáil breaks for the summer on July 17th. 'Any other airport in Europe would be delighted to break previous passenger records, knowing the huge economic contribution that comes from welcoming 3.54m visitors to our shores,' DAA chief executive Kenny Jacobs said. 'But for Dublin, it's bittersweet: the outdated cap remains a millstone weighing down every airline considering keeping or starting new routes, which has ripple effects for any business investing in Ireland as well as our home-grown industries, particularly tourism.' The former Ryanair executive said TUI's decision to remove two aircraft from Dublin Airport from next summer is a reminder of 'how easily airlines can decide to relocate' resources away from Ireland. Mr Jacobs said Ireland would be hanging up a 'closed for business sign' if DAA is required to turn away passengers to avoid breaching the passenger cap. 'The Government has confirmed it supports a lifting of the cap and 'will do whatever we can to achieve this',' he said. 'We encourage the Government to share the solutions under consideration and the timeline to get this done.' DAA applied to the council for permission to increase the cap to 36 million and 40 million in separate applications, but has yet to receive a decision from the planning authority. However, in April the High Court effectively suspended the passenger cap pending the outcome of a legal challenge relating to the limit taken last year by Irish airlines Ryanair and Aer Lingus, and Airlines for America, which represents US and Canadian carriers.
Irish Times
26-06-2025
- Business
- Irish Times
Past time to lift Dublin passenger cap say American carriers
It is 'past time' for the Government to axe the controversial cap limiting Dublin Airport to 32 million passengers a-year, North American airlines warned on Wednesday. Airlines for America (A4A), whose members include US and Canadian carriers that fly to Dublin, said in a statement that it was bewildered at the cap remains despite Government pledges to lift it and widespread business condemnation of the planning condition. 'It is past time for the Irish Government to show leadership on this matter and take steps to remove the cap which hinders commerce, disrupts the seamless facilitation of passengers and threatens economic growth, jobs and tourism on both sides of the Atlantic,' said the group. 'It is critical that this matter be resolved swiftly to avoid long-term damage to the US-Ireland relationship, the aviation market and the broader transatlantic economy.' READ MORE A4A's comments follow a warning from Willie Walsh , the International Air Transport Association's Irish director general, that the cap was angering US airlines. Michael O'Leary , Ryanair chief executive, this week also renewed calls on the Government to lift the cap, a measure included in the Programme for Government.
Irish Times
25-06-2025
- Business
- Irish Times
Dublin Airport passenger cap causing ‘quite a bit of anger' among US airlines
Ireland's image as a location for investment by international airlines has been 'tarnished' as a result of the battles over the passenger cap at Dublin Airport , according to Willie Walsh , the Irishman who is director general of IATA , the Geneva-based airline representative body. Speaking to Inside Business, a podcast from The Irish Times, Mr Walsh said the cap was 'viewed with ridicule when I talk to some CEOs as to how it can be that Ireland invests in terminal infrastructure, invests in [new] runways, and then has a cap on how many passengers can use the airport. 'In effect, you're looking at a situation where Dublin has lower capacity with two runways than it had with a single runway,' he said. At present, Dublin is subject to a cap limiting the number of passengers at Dublin Airport to 32 million a year. This flows from a planning restriction dating back to 2007. The cap has effectively been paused following various legal challenges and is awaiting a ruling from European courts. READ MORE IATA Director General Willie Walsh on airline profits, air fares and why the Dublin Airport passenger cap makes Ireland a laughing stock Listen | 35:56 This week host Ciarán Hancock is joined by Willie Walsh, the director general of IATA, the Geneva-based representative group for the airline will be known to you as the Irish man who was a high-profile chief executive of both Aer Lingus and British then became head of IAG, which is the parent group to both of those airlines plus some Spanish carriers, including now in charge of IATA, with his contract set to run until hear Willie talk about airline profits and whether air fares are likely to go up or down in the near spoke about aviation's role in reducing harmful carbon emissions and the chances of a climate-friendly biofuel being developed for commercial gives his view on why emerging markets such as India and burgeoning economies in Africa are entitled to grow their airline industries and passenger traffic as they become also expresses his frustrations with the inefficient way air traffic control is managed in Willie explains why, in his view, Ireland has become something of a laughing stock on the international stage over the legal battles being fought around the Dublin Airport passenger cap. In his view, this is hindering growth here and jeopardising foreign direct investment. And the 63-year-old talks about his plans for retirement, which could include Italian wine. Produced by John Casey with JJ Vernon on sound. DAA expects 36 million passengers to use Dublin Airport this year. Mr Walsh, a former CEO of both Aer Lingus and British Airways, is aware of airlines who had Ireland 'on their agenda in terms of expansion who are now questioning whether they should go forward with that because of these issues'. 'It is having an impact on how people are considering expanding into Ireland. What a lot of airlines want, particularly long haul international airlines, is certainty about being able to have access next year and the year after and the year after. 'What we call grandfather rights with slots that will enable them to publish a schedule that they know will be consistent for years ahead. With the uncertainty around the cap, it's going to be quite damaging when airlines are looking at expanding their long haul networks.' He said the cap had caused 'quite a bit of anger' among US carriers, who view Ireland as an opportunity for expansion. Mr Walsh said using Cork or Shannon airports would not appeal to airlines as an alternative to Dublin. 'Airlines look at the airport they want to serve, they look at the city they want to serve and if Dublin Airport is not available, they're not going to say 'there's this great airport in the west of Ireland called Shannon which is under utilised, plenty of capacity, why don't you fly there'. 'It just won't register on their map. If they were attracted to Shannon ... they would have been there already but that's not the case.'
Irish Times
23-06-2025
- Politics
- Irish Times
Dublin Airport will eventually exceed 40 million passengers a year, Minister for Transport predicts
Imposing annual passenger caps on Dublin Airport will be 'arbitrary' as even the 40 million cap being sought by airport operator DAA will be surpassed within a short period, Minister for Transport Darragh O'Brien says. The cap of 32 million passengers a year, which has been in place since 2008, was breached in 2023 and 2024. Mr O'Brien said the number of passengers passing through the airport was likely to exceed 36 million this year. He said it was a clear aim in the Programme for Government to end the restriction on passenger numbers. READ MORE 'I want to see the cap in Dublin Airport removed. I think any artificial stifling of growth within Dublin Airport, it would be counterproductive for the country,' he said. Last week, Fingal County Council, which is the local authority with responsibility for the airport, issued an enforcement notice that gave DAA a two-year period to comply with the planning conditions imposed by An Bord Pleanála in 2008. However, there is a High Court-imposed stay pending the outcome of proceedings taking by a number of airlines against the cap. Mr O'Brien said that stay was likely to remain until the second half of next year. He said the Government was now working on a new National Aviation Policy to address the issues of the volume of traffic around the State's main airport hub. He said a key ruling by An Bord Pleanála on night flights at the airport – expected within weeks – would be critical. At present no flights are allowed to take off from or land on the north runway between 11pm and 7am. The night-time movements of aircraft in the airport are restricted to 65 overall. DAA has applied for those restrictions to be eased and there is expectation that aircraft will be allowed on the north runway between 6am and midnight daily. This change has been strongly opposed by residents living in St Margaret's and The Ward, two communities located at the perimeter of the airport. Mr O'Brien, a TD for the constituency, said he was very conscious of the concerns of those communities and the challenges they faced. 'I've been at pains to say to DAA to operate under the good neighbour principle,' he said. He said some people in the St Margaret's area were in effect living right beside the runway. He said the airport should improve its voluntary purchase package as the impact was significant on a small number of households. 'They can't be forgotten,' he said. However, Mr O'Brien said the airport needed to expand and that included passenger numbers. He said if decision on night flights was in favour of expanding the hours then that would help passenger numbers grow. 'A total of 3 per cent of GDP comes from activity around the airport campus. It's a critical driver for economic growth, and supports about 20,000 jobs directly and about 130,000 indirect jobs.' He said basing numbers on forward projections over 10 years the number of passengers would exceed 40 million each year before then. 'One should ask the question, if DAA applies for a passenger cap of 40 million how long will that last? Is that cap going to be [surpassed]? Therefore should you have an arbitrary cap?' Mr O'Brien also said he had consulted Attorney General Rossa Fanning and may bring forward legislation to prevent what he sees as overly restrictive limits. He said the cap was put in 2008 as a response to inadequate transport infrastructure at the airport. He said the situation had changed since then, with a change in terms of roads, public transport and access.
