Aer Rianta to appeal regulator's ruling

Aer Rianta is to appeal against yesterday's rejection of its investment plans by the airport regulator.

Stung by criticism of its plans in the report by the Aviation Commissioner, Mr Bill Prasifka, the State company said this afternoon it would write to the Minster for Public Enterprise, Mrs O’Rourke, to urgently appoint an independent panel of experts.

This panel of three to five members will review the determination and can then recommend alternations to Mr Prasifka’s Determination. If this option fails, the company’s only alternative is an appeal in the High Court.

Aer Rianta today described as fundamentally flawed the decision to cut its £1 billion investment plan by nearly 75 per cent. Mr Prasifka said yesterday expenditure of only £272 million of the capital programme could be justified.

Mr Prasifka also lowered the landing fee at Dublin Airport to £4.41 per passenger from £4.65.

The company’s spokesman said their investment was necessary to meet forecasted traffic demand for the three national airports up to 2006 - which is expected to rise from 18 million passengers per annum to 25 million.

"The Commission has only allowed investment of £2.04 per passenger overall. For Dublin this is £1.52 per passenger, Shannon £3.31 per passenger and Cork £4.83 per passenger. This is not sustainable," claimed a company spokesman.

Aer Rianta compared their development plans with other European airports. "The BAA airports are investing £8.27 per passenger and Schiphol £5.75," the company claimed.

A company spokesman said the Commission’s determination would result in congestion at the airports, in particular Dublin.