What the Dublin Airport passenger cap ruling means, and what happens next

Court stalls regulators from applying summer passenger limit

A row over passenger limits at Dublin Airport ended up in court this week. Photograph: Collins Photos
A row over passenger limits at Dublin Airport ended up in court this week. Photograph: Collins Photos
What was Monday’s High Court ruling on Dublin Airport passengers about?

The High Court stalled air travel regulator, the Irish Aviation Authority (IAA), from limiting airlines at Dublin Airport from carrying more than 25.2 million passengers next summer when it is deciding on the conditions for allocating take-off and landing slots for the peak travel season. Airlines including Aer Lingus and Ryanair sought the ruling.

Why was the IAA going to impose a limit?

The authority was taking into account an overall cap of 32 million passengers a-year imposed by planners on the airport in 2007 to ease fears of traffic congestion on the roads leading to the gateway.

If it is a planning condition, why did the court make the ruling?

Mr Justice Barry O’Donnell said there was a risk of “immediate serious consequences” to airlines if he refused to stay the IAA from applying the limit, pending the outcome of legal actions challenging it and a winter limit, both of which stem from the passenger cap. The court will hear these on December 3rd.

So this is not the end of the issue?

No, the court is saying that the IAA cannot apply the limit until it has had a chance to hear the airlines’ cases next month. However, they want some questions referred to the European courts, as they involve EU law and an air travel treaty between the bloc and the US, so a final ruling could take some time.

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What happens now?

The IAA will still set conditions for allocating slots at Dublin Airport, taking account of factors including runway and terminal capacity and airspace, but not the passenger cap. An independent company, Airport Coordination Ltd, hired by the IAA, will then allocate the slots to airlines this month and apply those conditions.

What does it mean for airlines?

They will at least get the slots they have had up to now. If the limit had been applied, they would have had to cut their available seats by around one million, meaning they would axe flights, with the likely consequence that fares would increase for anyone flying from Dublin next summer.

Could they get more slots to expand their operation?

As long as the new slots comply with the other parameters set by the IAA. Airlines cannot be refused on grounds of the summer passenger limit.

So the planning condition will be breached?

That is likely. Dublin Airport is already poised to breach the limit this year as it is. So, should airlines maintain their capacity next summer and sell the same number of seats on their flights, then one would expect the same outcome.

Isn’t there a winter limit also?

Yes, the IAA decided on a maximum of 14.4 million passengers from last month to March 27th next year, which the airlines are also challenging next month.

Why did they not ask the court to stall that also?

Because the summer limit would have forced the airlines to surrender established slots, which they say are property rights, and they would not be compensated for this, so that raised a legal question. The winter limit prevents them from adding extra flights, but not giving up existing rights.

What is the IAA’s position on this?

The authority was neutral in court as the planning condition does not apply to it, but to the airport operator, State company, DAA. It simply took it into account because the DAA asked it do so.

What is the DAA’s position?

It says it is doing everything it can to comply with the planning condition, but it cannot stop airlines from using Dublin Airport, or passengers from boarding their planes. It has asked Fingal County Council to increase the cap to 40 million.

So how will the row be resolved?

By planners, courts or possibly the Government. Michael O’Leary, Ryanair chief executive, is confident that the European courts will throw it out.

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Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas