Aer Rianta hopes to get the go-ahead to raise its airport charges by another 20 per cent following the announcement yesterday that the Aviation Commissioner is to hold a review of allowed airport charges.
The airport authority is already consulting airlines regarding its plan to increase charges at Dublin airport by 9 per cent in January. Any increase arising out of the review would be in addition to that increase.
The Commissioner, Mr Bill Prasifka, decided to hold the review after considering submissions from interested parties.
Aer Rianta welcomed the announcement and said it looked forward to a "comprehensive consultation process and a positive outcome in terms of the existing and future funding requirements of Dublin, Shannon and Cork airports".
A spokesman for Ryanair, responding to the announcement, said: "Never mind reviewing the charges. We should be reviewing the regulator's office." He strongly criticised the 9 per cent price increase already being introduced by Aer Rianta.
An Aer Lingus spokeswoman said that it would "actively participate in the review" and that the airline had been fighting hard in recent times to reduce its cost base.
The commission is to review a determination made in August 2001 concerning the maximum landing charges allowed in the airports over the period to September 2006.
Mr Prasifka gave two reasons for his decision to hold the review. They are:
"Analysis of the commercial consequences (particularly as to changes in passenger traffic and security requirements) for airport management and the airline business sector arising from such exogenous events as September 11th and the war in Iraq."
"The correction of matters of computation, calculation and application arising out of information received by the Commission" after the date of the 2001 determination, including the "substantial volume of information exchanged" between the commission and Aer Rianta.
The exchange of information occurred in the course of judicial review proceedings brought by Aer Rianta against the original determination. The court ruled in the commission's favour. The information that emerged from the process was used by the commission to reassess calculations already made concerning charges.
The commission's review will not have regard to the proposed second terminal at Dublin airport or the break-up of Aer Rianta, as these matters are, respectively, still awaiting a decision and at a very preliminary stage. Mr Prasifka said he had decided to go ahead with the review anyway as the review "needs doing so it is just as well that we do it."
The commission will issue a statutory notice on November 7th setting out the precise issues that will come within the scope of the review. There will then be 30 days for interested parties to submit their views.
The 2001 determination set out a formula for establishing the limit allowed each year for charges during the five-year period covered by the determination. Aer Rianta has announced its intention to increase its charges by up to 9 per cent from January 1st, as allowed under the 2001 determination.
Earlier this week, the chief executive of Ryanair, Mr Michael O'Leary, said its air fares on routes from Dublin would rise by 9 per cent as passengers would have to pay the higher passenger charges being imposed by the airport.
Mr O'Leary called on the Government to replace the Aviation Commissioner, Mr Prasifka, and blamed the Taoiseach, Mr Ahern for stalling progress at Dublin Airport.
"It is about time this prime minister started leading instead of moping around hoping that it will all work out in the end. He is ineffectual," Mr O'Leary said.
