Mr Bill Prasifka, the aviation regulator, has raised some difficult questions for Aer Rianta which go to the heart of its role as a state-owned company. Travelling through Dublin airport has not been a pleasant experience for many years. Meanwhile the company's corporate customers have become increasingly unhappy with the way Aer Rianta runs Dublin, Cork and Shannon airports. Now the regulator has criticised the company's approach to addressing these issues and has questioned the way it goes about its business.
The company is invoking its right to have the regulator's decision on airport charges re-examined through an appeal process. But, whatever the outcome of this process, it is clear that Aer Rianta and its owner, the Government, must now outline a clear strategy for the State's airports.
The regulator has been scathing in his criticism of the company, and by association its management and board. He has accused them of overseeing an inefficient investment programme not subjected to a rigorous cost-benefit analysis. They are findings which raise serious questions for the Aer Rianta board and management and for the Minister, Ms O'Rourke.
The Government has protected Aer Rianta's monopoly at every turn, blocking attempts by Ryanair and the McEvaddy brothers, Des and Ulick, to build rival terminals and has also stymied plans to develop commercial activities at Baldonnel aerodrome in West Dublin. Given the regulator's findings, it will come under pressure to re-examine this strategy. It may also have to face some other politically difficult questions; for example, the company has suggested that one way to fund its expansion programme would be to sell off the Great Southern Hotel chain.
The regulator may have done the public a service by highlighting questions about Aer Rianta's investment programme. But what happens next is not clear. Aer Rianta cannot with any credibility walk away from its £1 billion investment plan, just because the aviation regulator has said that he does not like it. The plan is the corner stone of a long-term strategy to float on the stock market. It is also clear that it will take more than the £272 million in capital expenditure that Mr Prasifka has said is justified, to fix the problems at Dublin and develop Cork and Shannon along the lines the Government envisages in the National Development Plan.
Aer Rianta started its fight-back yesterday, vowing not to cut airport charges and to go ahead with the investment plan. If the regulator's decision on charges is upheld, it is not clear where the money will come from. Aer Rianta will now try to have the decision on airport charge caps announced by Mr Prasifka reopened, via an appeal to the Minister for Public Enterprise, who will appoint a panel to examine the case, as set down under the legislation.