THE GOVERNMENT is expected to merge the Commission for Aviation Regulation (CAR) with the Irish Aviation Authority under its rationalisation of agencies and quangos.
The Irish Timeshas learned that an announcement on the merger, under consideration for some time, could be made as early as today. Both agencies are believed to have received correspondence in recent weeks about such a proposal.
This will form part of the Coalition’s push for public sector reform in an effort to extract cost savings and greater efficiencies.
An announcement on this reform will be made at about midday today by Taoiseach Enda Kenny, Tánaiste Eamon Gilmore, Minister for Public Expenditure and Reform Brendan Howlin and Minister of State for Public Service Reform Brian Hayes.
Such a merger would effectively involve the regulator, the CAR, merging with a entity that it regulates, the IAA.
Among its many functions, CAR, led by Cathal Guiomard, sets air traffic control charges for the IAA. It also has responsibility in relation to the layout and detail provided in the IAA’s regulated accounts.
Separately, it was expected that the IAA’s two main functions – air traffic control and civil aviation safety – would be separated to satisfy EU demands. It is not clear if this will proceed under the Government’s proposal to merge the agencies.
CAR was established in February 2001 and employs about 18 staff.
Its functions also include licensing of the travel trade, enforcement of air passenger rights under EU rules, and the setting of passenger charges at Dublin Airport. The commission and Mr Guiomard personally have been the subject of fierce criticism from Ryanair in recent years about increases in passenger charges at Dublin Airport.
Ryanair chief executive Michael O’Leary has long called for the regulator’s office to be disbanded.
The IAA is led by Eamon Brennan. It is a commercial semi-State company employing about 700 people at six locations around Ireland.
It also licenses pilot and certifies aircraft worthiness.
In 2010, the IAA’s operating profit rose by 12.8 per cent to €14.9 million. It had total assets of €194 million and no net debt.
In April, at the launch of its annual report, the IAA said it would consider paying a dividend to the Government this year.
It is not clear if Mr Brennan or Mr Guiomard would lead the merged entity or if redundancies would be involved.
However, some rationalisation of administrative functions would be expected to achieve cost savings from the combination.
