Aer Lingus, Dublin Airport and Ryanair are no longer planning to challenge passenger charges set by the aviation regulator for the next five years.
In October, the Commission for Aviation Regulation (CAR) ruled that Dublin Airport Authority (DAA) must cut its passenger charges by almost 19 per cent over the next five years to €8.68 from € 10.68.
Its finding angered the airport company and Aer Lingus and Ryanair, its two largest customers, all of which asked the Minister for Transport, Tourism and Sport, Paschal Donohoe to establish an appeal panel to allow them challenge it.
However, Mr Donohoe said on Friday that the three have withdrawn their requests. As a result, he will not be establishing the appeals panel.
The airport and airlines said that they remain dissatisfied with the new charges for various reasons, but withdrew their requests for an appeal as the system for setting the levies in the first place will be reviewed this year.
Mr Donohoe’s department plans to hire independent consultants to carry out the review and advise a future structure this year.
The Government committed to the review in its draft aviation policy, which it published in 2015.
The CAR latest’ ruling cut the maximum that Dublin Airport can charge for each passenger to €10.30 this year from €10.68 in 2014. The figure is set to fall progressively to €8.68 by 2019, a total reduction of 18.7 per cent over five years.
The airlines objected on the grounds that the reduction was not enough and fell short of the 22 per cent cut initially proposed by the regulator in May.
The DAA said that they went too far and would limit its ability to invest in necessary infrastructure at the airport.
During the consultation process, the minister used his powers under the Aviation Regulation Act to direct the regulator to ensure that the State-owned DAA had enough cash to implement Government policy.
The airlines responded by accusing the minister of political interference and claimed that his move would drive up passenger charges.
