The prospect of a High Court battle between Minister for Transport Paschal Donohoe and Ryanair over Dublin Airport's passenger charges receded yesterday following an exchange of letters between the two.
Ryanair had threatened the Minister with legal action unless, by last Tuesday, he withdrew a direction to Commissioner for Aviation Regulation John Spicer that the airline claimed would increase the airport's passenger charges.
While it did not fully withdraw the threat of going to court, Ryanair's regulatory affairs chief, Juliusz Komorek, wrote to Mr Donohoe yesterday acknowledging that he did not instruct the regulator to do anything that would result an increase in the charges.
He was responding to a letter that Mr Donohoe had written on Tuesday refusing to withdraw the direction or any part of it as he was acting wholly within his mandate.
Mr Komorek also wrote to Mr Spicer yesterday arguing that the commission cannot change its proposal to cut the cap on Dublin Airport’s passenger charges by 22 per cent to €8.35 over the next five years, which sparked the dispute in the first place.
The regulator wants to veto €170 million of the Dublin Airport Authority’s spending plans to achieve those savings.
The State-owned company says the cap should be set at €13.50 per passenger, although it does not intend to increase charges from their current average of €10.50 by anything more than the rate of inflation. Aer Lingus and Ryanair want deeper cuts than those the regulator proposes.
Mr Donohoe last week used his powers under the Aviation Regulation Act to direct Mr Spicer to ensure DAA has the cash to implement Government policy.
The move angered the airlines which warned that it would drive up passenger charges. Mr Komorek argued that it would oblige the regulator to sanction €425 million in extra spending at Dublin Airport.
