Will Dublin Airport Scrap Passenger Cap? State Offers 30% Premium to Homeowners.

The Irish government is moving to abolish the long-standing annual passenger cap at Dublin Airport, a move that could reshape the country’s aviation landscape. Transport Minister Darragh O’Brien is set to bring the Heads of a Bill to the Cabinet this week.

This legislative action aims to remove the 32 million annual passenger limit imposed on the airport in 2007. The cap was a condition of the planning permission granted for Terminal 2 and the North Runway. The airport operator, daa, has long argued the limit stifles economic growth and international connectivity.

The Legislative Push and Capacity Crisis

Minister O’Brien’s proposal seeks to end the regulatory uncertainty surrounding the cap. The airport has already exceeded the 32 million limit in recent years, handling approximately 34.6 million passengers in 2024, according to industry data. This breach has led to legal challenges and regulatory confusion over slot allocations.

Major carriers like Ryanair and Aer Lingus have strongly criticized the cap. They argue it prevents the addition of new routes and forces them to divert growth to other European hubs. The government views the airport as a vital piece of national infrastructure.

In parallel, daa has a separate application with Fingal County Council to increase the cap to 40 million passengers. However, the Minister is pursuing a legislative solution to scrap the limit entirely. This would reclassify the airport for planning purposes.

Homeowner Compensation and Noise Mitigation

The proposed abolition of the cap is closely linked to measures for affected local communities. The government is addressing concerns over increased aircraft noise and traffic.

The Voluntary Dwelling Purchase Scheme (VDPS) is a key component of this mitigation strategy. Under this scheme, homeowners in specific, noise-affected areas can sell their properties to the State.

Key Details of the Buyout Offer

• 30% Premium: Eligible homeowners are offered a 30% premium above the current market value of their property.
• Additional Allowances: The offer includes generous allowances to cover costs. These costs include stamp duty, conveyancing, and moving expenses.
• Eligibility: The scheme is currently offered to a small number of homeowners most affected by noise. Approximately 41 homeowners have been offered the buyout option so far.

Dublin Airport is also implementing a Residential Sound Insulation Grant Scheme (RSIGS). This grant offers up to €30,000 per house for sound insulation measures. These upgrades include acoustic double-glazing and vents in eligible bedrooms. The goal is to reduce indoor noise levels by at least five decibels.

Industry Impact and Outlook

The removal of the cap would provide long-term clarity for the aviation sector. Airlines could plan for significant capacity expansion and new route development. This is expected to boost Ireland’s tourism and trade links. The legislative process is complex, but the Minister is committed to its swift enactment in 2026. This move signals a strong government focus on aviation as a driver of national economic growth.

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