Shut Dublin Airport car park could be allowed to re-open for key summer season, watchdog says

Gerry Gannon is not allowed sell his carpark at Dublin Airport to the DAA. Photo: Steve Humphreys

John Burns

The competition authority says it is not opposed to a massive car park at Dublin Airport reopening for the busy summer months – even if the DAA is the operator.

The Competition and Consumer Protection Commission (CCPC) has already stopped the DAA from purchasing the former Quickpark-operated car park, with 6,100 spaces, from developer Gerry Gannon for about €70m.

‘Multiple parties are interested in both buying the car park and entering into a short-term lease’

The purchase would have given the State authority ownership of 90pc of all car-park spaces at the airport – which the CCPC ruled would have led to increased prices or reduced service quality.

However CCPC chair Brian McHugh has said the authority is open to a short-term lease, and thinks it is feasible.

“We understand that multiple parties are interested in both buying the car park and in entering into a short-term lease,” he said. “For [most] parties there is no obvious issue whatsoever.

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“With the DAA, it is possible they could enter into a short-term lease and there would not be a competition issue – but it would depend on the detail and the circumstances of the arrangements and of the contract they would enter into.

“We couldn’t sign off on that contract without having a look at it and seeing if there were any competition issues.”

Mr McHugh said no agreement between the car-park owner and an operator has been put to the CCPC so far.

“If the car park could open tomorrow, we would be very keen to assist as much as we could, in terms of facilitating that,” he said.

Graeme McQueen, Media Relations Manager at the DAA, said: "We’ve moved on, and at this stage just want to see the facility re-opened and the spaces available to passengers once again – and a commitment from any new owner that it will remain as a car park long term."

The deadline for the DAA to appeal against the competition authority’s decision has now passed.

The entry of a new car park to the market was ‘extremely unlikely’

This has led the CCPC to release an almost 300-page report on how it came to its decision.

One of the factors was “evidence of intense competition” if an operator other than the DAA was to operate the car park, and that rivals would have “undercut on price”.

The CCPC says a “handful” of people were in touch throughout the one-year investigation, stressing they were still interested in buying the site.

The CCPC noted that when the DAA increased prices at its other car parks, there was no significant switching to public transport by airport commuters.

The entry of a new car park to the market was “extremely unlikely” because of a cap on the number of spaces, which is linked to the airport’s passenger cap.

“The cark park remains a viable and attractive business,” the CCPC concluded. “Several new and original bidders have confirmed their interest.

“The sale of the car park is a matter for the owner, but there is no competition reason it could not be opened.”