RYANAIR IS planning to seek a judicial review of Minister for Transport Noel Dempsey’s direction last month to the aviation regulator on airport passenger charges at Dublin Airport.
In a letter on October 27th to regulator Cathal Guiomard, Mr Dempsey issued a “direction” to set the passenger charge over the next five years in a way that would allow the Dublin Airport Authority (DAA) to recoup the cost of building Terminal 2, due to open next November.
“We’ll be looking for a judicial review of Dempsey’s decision,” Mr O’Leary told a press conference in Dublin yesterday. “It seems to interfere in the statutory independence of the aviation regulator.”
He said Ryanair would seek a review in the next fortnight.
In his letter to Mr Guiomard, first reported by The Irish Times, Mr Dempsey said it was “appropriate” to clarify the Government’s policy regarding “the financially sustainable development of Dublin Airport”. He added: “I am directing you under section 10 of the Aviation Regulation Act 2001 to ensure that the Dublin Airport Authority’s financial viability is protected in order to implement government policy.”
Mr O’Leary described the direction issued by the Minister as “corrupt” and “rotten”.
In a statement responding to these allegations, the transport ministry said: “The department respects Ryanair’s right to disagree with Government policies.
“We fundamentally reject Mr O’Leary’s characterisation of the department and its officials as corrupt, by virtue of their implementation of these policies. We will not lend dignity to the accusation by making any further comment.”
Mr O’Leary claimed passenger charges could rise by 40 per cent on foot of the Minister’s direction.
He said Ryanair would continue to reduce its traffic from Dublin, Shannon and Cork airports if charges continue to increase.
Ryanair expects to carry about 9.5 million passengers from Dublin this year, reducing to about 7.5 million in 2010. He said the process that led to the awarding of the T2 contract was flawed, and there had been a lack of consultation and cost verification, as promised by Martin Cullen when he was minister for transport.
A DAA spokesman said an “extensive” consultation on the design and specification of T2 had been carried out with airlines, including Ryanair.
Mr Guiomard is deciding what passenger fee should be charged between 2010 and 2014. His determination is due shortly.
The charge stands at €7.39 each way. In an interim decision in June, Mr Guiomard proposed to increase it to €8.35 in 2010, with further rises allowed when the costs of T2 were established.
The DAA had sought a minimum increase of €3 a head.
