Aer Lingus yesterday called for an end to political interference in aviation regulation, following the decision by Minister for Transport Paschal Donohoe earlier this week to step into a dispute over passenger charges at Dublin Airport.
Mr Donohoe this week used his statutory powers to direct the Commission for Aviation Regulation (CAR) to ensure the Dublin Airport Authority (DAA) has enough cash to implement Government policy when the regulator sets the cap on the company's passenger charges for the 2014-2019 period this month.
The Minister's move angered airlines Ryanair and Aer Lingus, both of which warned it could result in an increase in the charges levied on passengers, which they and the regulator want reduced.
Yesterday, Aer Lingus director of communications Declan Kearney said the airline has always been opposed to the section of the Aviation Regulation Act that gives the Minister the power to issue directions to the CAR.
Passenger costs
“This provision within the legislation creates the potential for political interference in what should be purely economic decisions, with the result that airport users and passengers could face higher costs,” he said. Mr Kearney added the company, which is 25 per cent State-owned, highlighted this in a recent submission on aviation policy to the Government.
His company argues that, as the DAA is a monopoly, the commission is the only real barrier to "ever-increasing passenger" charges, which drive down customer demand. "The regulator should be allowed to carry out its work in an independent manner," he said.
Cap on charges
The CAR wants to block €170 million of the DAA’s spending plans to allow the cap on its passenger charges to be cut by 22 per cent from €10.68 to €8.35 between next year and 2019. The commission says its proposals will still leave the airport with €307 million for development.
The DAA argues this is not enough to fund developments that the airport needs, including new security facilities which it points out regulations require it to install. It wants the cap raised to €13.50 from €10.68 but has pledged that it will keep any increase in charges in line with inflation.
Aer Lingus said yesterday the DAA’s proposals would kill the benefits created by the Government’s decision to axe the €3 air travel tax. The company argued this boosted tourism and triggered the opening of new routes. “We can see that, on a per passenger basis, every euro of additional cost makes a material difference,” Mr Kearney said.
