Dublin Airport Authority (DAA) has unveiled a major new financial incentive scheme to encourage traffic growth at Dublin, Cork and Shannon airports next year.
The Grow Incentive Scheme will see Dublin, Cork and Shannon airports effectively waiving all airport charges for passenger traffic once an overall threshold of 23.5 million passengers is reached during 2011.
Once the passenger target of 23.5 million for the three airports is surpassed, the DAA will subsequently rebate the airport charges for all of the additional passenger traffic to its airline customers.
The threshold of 23.5 million passengers for next year is equivalent to the throughput across the three airports this year, normalised for the exceptional impact of the volcanic ash crisis.
“This innovative scheme will encourage airlines to maintain and grow their traffic from Dublin, Cork and Shannon airports next year,” says DAA’s director of strategy, Vincent Harrison.
“Any additional traffic over and above the 23.5 million threshold will be free of airport charges. We estimate that an increase of one million passengers above the 23.5 million target would be worth about €10 million to airlines in terms of airport charges waived.”
Rebates will be based on each airline’s proportion of the total traffic across Dublin, Cork and Shannon airports during 2011. Rebates will be paid to airlines in early 2012 for all passengers over and above the 23.5 million threshold.
“The combination of the government’s decision to reduce its aviation tax, coupled with the DAA’s rebate of all airport charges for extra traffic delivered to our airports next year provides a powerful incentive to stimulate passenger traffic into and out of Ireland during 2011,” enthuses Harrison.