Regulator backs it's own decision

The Commission for Aviation Regulation (CAR) has decided to back it's own decision to maintain the cap on passenger fees at Dublin Airport.  In September 2008 the Minister for Transport Noel Dempsey established an Aviation Appeals Panel to deal with complaints relating to the CAR's interim cap on airport fees at Dublin Airport from July 2007.

The Appeals Panel heard submissions from Ryanair, Aer Lingus, the Dublin Airport Authority (DAA) and the Dublin Airport Consultation Committee, publishing 4 non binding decisions, one on each submission,  just before Christmas.

This week the Regulator published it's report into the Appeals Panel decision and has decided to affirm it's own decision on the cap on passenger fees at Dublin Airport. The cap covers the period 2006 to 2009 and allows the fee to rise at an annual rate of inflation +4%. For 2009 the cap is set at €7.39 per passenger. Ryanair had contended that the charges were excessive and were required by the DAA to recoup an excessive capital expenditure program on the construction of Terminal 2.

The CAR in it's report refutes the areas of concern outlined by the Appeals Panel including the observations relating to the determination of capacity at Terminal 1 and Terminal 2. It also says that it cannot agree with Ryanair's contention that the capacity of T1 is 26m passengers per annum.

The Regulator has invited the DAA and airlines to talks in mid March to discuss how the €1.8b expenditure will be handled in advance of the Commission's next determination on charges which will come into effect next year.