More competition is needed at Dublin Airport
More competition is needed at Dublin Airport, according to an independent review. The report carried out by Indecon International Economic Consultants on behalf of The Department of Transport outlines how the state should consider promoting greater competition at Dublin Airport by facilitating the concept of competing terminals or even a competing airport.
This recommendation is put forward as one of 18 possible measures to address the current airport regulatory regime and the means by which airport charges paid by passengers are determined.
The Report finds that Dublin Airport has significant market power and regulation of its charging is necessary. Indecon says that the rationale for economic regulation is “to align outcomes to those operating in efficiently competitive markets and to correct for market failures in order to protect consumers. Where possible, competition should be facilitated which would reduce the need for regulation.”
Among the 18 possible measures is a concept of separate owners for terminals at the Airport. This idea was tried before when a process was conducted for an alternative operator to Terminal 2, even as it was being built. The process was quietly terminated when no credible bids were made.
The McEvaddy Brothers have long-standing plans to build a third passenger terminal on the western side of the airfield, but the land on which it might have been built is now under the control of NAMA.
The report concludes that, “while there are a number of positives in the current regime, areas of concern were identified concerning Statutory Objectives, Ministerial Directions, Appeals Process, Accountability and the Structure of Commission for Aviation Regulation (CAR)” The Commission for Aviation Regulation oversee the regulation of charges at Dublin Airport.