Minister in row with Ryanair on charges
Donohoe says he is acting within his mandate
Minister for Transport Paschal Donohoe has clashed with Ryanair over the High Courtrow in relation to passenger charges at Dublin Airport.
Ryanair last week threatened the Minister with legal action unless, by close of business yesterday, he withdrew a direction to the Commissioner for Aviation Regulation, John Spicer, that the airline claimed would increase the airport’s passenger charges.
Mr Donohoe wrote to the company’s regulatory affairs chief, Juliusz Komorek, yesterday afternoon saying he had no intention of withdrawing the direction or any part of it as he was acting wholly within his mandate.
His move leaves it open to Ryanair to follow through on its pledge to challenge the direction in the High Court on grounds the Minister went beyond his powers when he issued the direction and was therefore acting unlawfully.
A Ryanair spokesman said the company did not comment on “pending legal matters” and added its position was outlined in the original statement issued in response to Mr Donohoe’s action.
Charges cap
The dispute is rooted in proposals by the Commission for Aviation Regulation (CAR) to block €
170 million of Dublin Airport’s spending plans to allow the cap on its passenger charges to be cut by 22 per cent from €10.68 to €8.35 over the next five years.
Dublin Airport Authority (DAA) wants the cap to be set at €13.50, although it has said that any increase in charges from their current average of €10.50 will be kept in line with inflation. Airlines such as Ryanair and Aer Lingus want deeper cuts than those that the regulator is proposing.
Mr Donohoe last week used his powers under the Aviation Regulation Act to direct Mr Spicer to ensure State-owned DAA has the cash to implement Government policy.
Political interference
The move angered the airlines, which accused the Minister
of political interference and warned the move would drive up passenger charges.l
In his letter to Mr Komorek, the Minister said his action was a response to CAR’s statement that it had not received any directions or policy statement notifications.
“It was therefore necessary to clarify the situation for the commissioner, before he finalises his determination that ministerial directions issued previously to CAR remain in place,” he said.
“It was also important to formally confirm to CAR that the draft national aviation policy, which is currently being finalised, is to be considered as a statement of present policy,” Mr Donohoe added.