Air fares are likely to rise over the next year, but not significantly, the Oireachtas transport committee heard.
The CEO of the International Air Transport Association, an advocacy group representing 290 airlines worldwide, told TDs and senators that the net cost of jet fuel is likely to rise over the next year and that will drive airline prices.
However, Willie Walsh added that while there would be an increase, he didn’t think it was “significant”, perhaps less than 10%.
The commission also heard that Ireland has recovered faster than most European countries.
By contrast, Walsh told members the UK has seen a slower recovery in air travel than other European countries. He said Brexit could be a contributing factor to the different growth rates.
Earlier this year, the rapid recovery in passenger numbers following the COVID-19 restrictions led to staffing problems at Dublin Airport.
Transportation labor spokesman Duncan Smith asked if lower wages affected the attractiveness of airport jobs.
Walsh said many people left the aviation industry during the height of the pandemic and that government supports could have been better designed to keep employees in their jobs. He said Spain has been particularly good at this and consequently there hasn’t been the same level of airport delays there.
The conditionality applied to aid in other countries, such as Spain, differed from the situation in Ireland and this allowed more people to be detained, he explained.
Several politicians used today’s session to explore how balanced regional growth could be achieved, in terms of passenger numbers, with some arguing that Dublin was too dominant.
Committee members will travel to Schiphol Airport tomorrow to discuss Ireland’s national aviation policy, which will be reviewed by the Department for Transport.
Mr Walsh told the commission chair and Limerick City TD Kieran O’Donnell that more flights to Shannon Airport could be increased, for example through government incentives. However, he cautioned that turning Shannon into a hub airport is not feasible.
Mr Walsh told the committee that Shannon Airport has always been a good airport, but the local base in the Shannon region is relatively small. Tourism and investment are ways to boost numbers in the area, he said.
Meanwhile, Walsh has criticized the Dublin Airport Terminal 2 project.
He told Senator Timmy Dooley that he has not stood the test of time.
“Many of these issues were highlighted at the design stage of Dublin Airport”, Mr Walsh said, reports RTE.
Walsh said that technology is a key issue and he used the example of the Bahrain airport, where the security process is much more efficient. He said that passengers in Bahrain do not have to empty their luggage during security checks, which improves the passenger experience.
The same security technology was installed at Shannon Airport during pandemic-related restrictions.
In its opening statement to the committee, IATA said it expects air travel in Ireland to reach 100% of 2019 levels next year and reach 119% of pre-pandemic levels by 2024.
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