AIR TRAFFIC control charges are to be cut by 40 per cent between the start of 2012 and the end of 2015.

The Commission for Aviation Regulation’s decision will reduce costs for airlines at Dublin, Shannon and Cork airports, according to Minister for Transport, Tourism and Sport Leo Varadkar.

The move will see a 25 per cent cut on this year’s charges in 2012, and a 6 per cent cut in each subsequent year until 31 December 2015. The cut applies to planes landing and taking off from Dublin, Cork and Shannon airports.

Varadkar said he is still working with the CAR and with the Dublin Airport Authority to secure a reduction in airport charges.

“Lower costs for airlines, even marginal ones, will help the Government’s efforts to encourage more visitors to Ireland and build on the tourism-promotion measures in the Jobs Initiative,” the minister said in a statement.

He said he welcomes CAR’s decision to link the air traffic control charge cut to performance targets “which should benefit passengers in terms of service standards”.

The commission said it is setting progressively lower costs allowances to bring the Irish Aviation Authority’s operating costs for 2015 in line with those of 2006, given that traffic for 2015 is expected to hit similar levels to those recorded in 2006.

CAR says that the IAA could lose up to 10 per cent of its revenue if it consistently fails to meet its targets on beating delays and cancellations.

Varadkar recently commissioned a new report on the viability of Cork and Shannon airports and said that all options for running the airports are under consideration. Some of those options include privatising the loss-making airports, leasing them or running them under a concession agreement