Aer Lingus today launched a report which assesses the potential economic impact that could derive from the development of Dublin Airport as a Hub.  Aer Lingus commissioned EY to develop the report, which concludes that investment in hub infrastructure at Dublin Airport could add €18.6bn to Ireland’s GDP over the next 15 years, as well as generating an additional 33,950 jobs for the Irish economy. 

The bulk of the jobs would be generated in the tourism sector (26,990 jobs), with the remainder coming from the aviation sector and other indirect jobs.  An additional €6bn would flow to the Exchequer over the same period, from increases in a variety of taxes including VAT, excise, corporation tax and payroll tax.  During the construction phase from 2018 to 2023, an additional 1,147 jobs would also be created.

According to the EY report, Dublin Airport already has a number of advantages which would support its development as a hub airport, including:

1. Network carriers already operating at the airport
2. A large route network, short and long haul, which support the aggregation and connection of passengers
3. Ireland’s geographic advantage which facilitates services on Transatlantic routes

The report also cites US Pre-Clearance at Dublin Airport as a significant advantage.  Ireland is currently the only country in Europe to have US Pre-Clearance, a service which is particularly attractive to customers who wish to continue on a connecting flight once they arrive in the US, allowing airlines to use domestic terminals.

The development of Dublin as a hub airport could bring significant economic benefits to Ireland and transform our island economy through increased connectivity.  Airport hubs such as those in Singapore, Dubai, Iceland and Amsterdam have clearly demonstrated their ability to act as a catalyst for economic development and expansion.  

Whilst Dublin Airport is a strong candidate for this development, the analysis finds that investment in infrastructure will be needed in order for it to transform into a hub airport.

The development of Dublin Airport as a hub also holds numerous benefits for Irish passengers, including the improved connectivity that comes with being a hub airport, and increased load factors reducing the average cost per passenger, thus leading to cheaper fares.  Pooled demand will also lead to increased frequency and improved sustainability on existing routes.

Dublin Airport is currently experiencing growth in passenger numbers year on year.  The report is based on the development of Dublin as a hub bringing an additional 5 million passengers by 2033.

Stephen Kavanagh, Chief Executive, Aer Lingus, said: “We have supported the development of Dublin as a hub airport since its inclusion as a requirement in the National Aviation Policy and as more recently referenced in the National Development Plan.  Today’s report clearly demonstrates the very significant economic benefits to Ireland which would flow from the development of such infrastructure. Aer Lingus continues to drive its own strategy to be the leading value carrier across the North Atlantic, adding new routes and capacity on an ongoing basis, bringing increased connectivity for Ireland as well as growing jobs and supporting international trade and economic growth.  Today’s launch of two new routes; Minneapolis St. Paul in the US and Montreal in Canada, is a further demonstration of our commitment to transatlantic route growth.

“Aer Lingus’ execution of our strategy has resulted in growth in the number of transatlantic routes in the last three years, now serving 15 destinations.  This has helped Dublin Airport jump to fifth position on the league table of European transatlantic airports, having moved from eleventh position in 2010.

“Dublin Airport has a number of the characteristics of a successful hub, but new infrastructure is needed to fully realise the potential.  We have had constructive engagement with the DAA and we understand they are likely to propose hub infrastructure development within the Capital Investment Programme for the next regulatory period 2020-2024.  We welcome this development.”

Hub characteristics

A hub airport is one which is served by strong or multiple network carriers and airline alliances that provide scale in routes, aircraft, crew and passengers. Large or sophisticated networks and strong passenger volumes are of little use unless the airport has the requisite facilities to support hub operations. These facilities include the following:

• Airport facilities required to enable Hub airlines
• Appropriate facilities to handle passenger flight connections and ensure short distances between gates for transfer passengers
• Appropriate facilities to handle efficient and expedited transfer of baggage
• Ability to deal with peak flows, high volume arrivals followed by distribution of passengers and bags prior to departure wave
• Adequate airfield and runway capacity including taxiway access, aprons and stands for airlines to operate waves of arrivals and departures

We understand the DAA is considering proposing infrastructure development of the below approximate scale within the Capital Investment Programme for the next regulatory period 2020-2024:

• Development of new Pier 5 in the South Apron to develop and expand Terminal 2 operating capability
• Improved Dual Code Taxiway access to South Apron
• A new larger centralised US Customs and Border Protection (CBP) facility with double the peak hour passenger processing capability
• Enable departure of US CBP/TSA processed flights from remote stands, Pier 3, Pier 4 and the new Pier 5
• Increase in additional Narrow Body Equivalent stands (including both contact and remote stands) to total 17 additional stands compared to current South Apron capacity
• Development of new baggage transfer infrastructure to support connections
• Optimisation of runway capacity

~ENDS~

Notes to Editor

About Aer Lingus

Aer Lingus is the national airline of Ireland, founded in 1936. It operates 65 aircraft on routes to destinations in the UK, Europe and North America and carries more than 12 million guests per annum. Aer Lingus is Ireland’s only 4-Star airline, awarded by Skytrax, the international air transport rating organisation. Its mission is to connect Ireland to the world and to become the leading value carrier operating across the North Atlantic. Its home base is Dublin Airport. Aer Lingus is a member of International Airlines Group (IAG), one of the world's largest airline groups.