Monday, January 12, 2009

Aviation Appeals Panel issues report on Dublin's T2

The Aviation Appeals Panel is a body which was established by the Minister for Transport following a High Court case taken by Ryanair against the Commission for Aviation Regulation.
In July 2007, the Commission had published the maximum levels of airport charges applicable at Dublin Airport (CP6/2007)  which were to apply, taking into consideration the construction of the airport's second terminal, T2. 
Ryanair were unhappy with the system of charges and matters relating to T2 and took a case in the High Court. Justice Clarke delivered two decisions, one in April 2008 and a second, one month later. Ryanair appealed the decisions of Justice Clarke to the Aviation Appeals Panel and today's report is the decision in relation to that appeal. The members of the Aviation Appeals Panel are Paul Gardiner SC, Niall Greene, MD of Aviareto a company which holds the contract from the ICAO for the management of the International Register of Mobile Assets and Alan Doherty is the third member of the panel.
Today's report on the Ryanair appeal has found that the capacity of T2 would appear to be considerably greater than required. It also finds that the Regulator was not clear as to the actual capacity of T1 during the Appeals process and the Panel accepts Ryanair's assessment that the T1 capacity is probably close to 26m passengers when an Bord Pleanalla (Planning  Board) has put a cap of 32m passengers on the so called 'eastern campus' development at the airport, which includes T2.
As a consequence the Panel has referred certain matters back to the Commission for it's consideration  - including the calculation of T1 capacity, T2 capacity and the capex implications of those numbers. 
The Panel is also concerned that building an overcapacity T2 may pose a financial risk to the viability of the DAA. It further states that the risk of oversizing is one that should be borne by the DAA and not the airport's users.
The report criticises the Commission for Aviation Regulation for passive regulation and suggests that the capacity of T1 be worked out taking into consideration the competing views of the DAA and Ryanair. 
In total the Appeals Panel published released 4 fours reports into appeals against the Commission and CP6/2007 . The appeals were by Ryanair, Aer Lingus, the DAA and the Dublin airport Consultation Committee. The appeals by Aer Lingus and DACC were rejected and the appeal by Ryanair was upheld. The report into the DAA's appeal is lengthy with the first half having been released today.

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