Dublin Airport, T2
Ryanair still hopes to prevent what it sees as overspending by Dublin Airport Authority (DAA) after the High Court ruled it had a right to appeal the Irish Commission for Aviation Regulation”s interim report on airport charges.
”Although the Court did not overturn the [price cap] decision, the Judge clarified that Ryanair is entitled to appeal the substance of the decision before an Appeals Panel established by the Minister for Transport,” said Ryanair head of regulatory affairs Jim Callaghan. ”We are therefore calling on the Minister to establish this panel in order to remove the wasteful spending that the Commission allowed into the regulated asset base (RAB) [upon which price caps are largely determined].”
The regulator pointed out in its own statement that ”Ryanair failed to demonstrate to the Court that the Commission”s 2007 decision suffered from legal flaws or a lack of process” but the airline said the Court ordered the Commission to clarify its treatment of ”1.2bn in its interim review and that the regulator ”has now confirmed that this figure has been included in the RAB, which will lead to a doubling of passenger charges at Dublin Airport.”
Callaghan told ABTN the carrier hopes to make its case to a Panel in around two months, and that it is still optimistic it can stop some of the money being spent.
”It”s not getting the whole amount overturned ” which is largely for Dublin Airport”s second terminal ”” it”s making sure that whatever does get included meets the reasonable requirements of users. The situation we have at Dublin is similar to that at Stansted, where a monopoly is told they will get a guaranteed raised return depending on how much they spend ” it”s equivalent to putting money into a bank ” why wouldn”t you spend money if you get a guaranteed rate of return?”
Even the regulator thinks DAA”s planned Terminal 2 is ”at least 50% too large” according to Callaghan, but if the cost of it was reduced by half it would still be too expensive.
”DAA is making two separate buildings, one for deep queuing - when the trend is for web check-in. Customers are asking us to get them through the airport as quickly as possible, with efficient security, and to have the gates right there,” he added. ”That”s what”s happening all over Europe at airports subject to competition ” that”s what the market is calling for. Monopolies don”t have to pay any attention to what passengers are asking for, because regulators are rubber stamping a guaranteed rate of return depending on what the airport spends ” that translates into very high airport charges.”
Commissioner Cathal Guiomard said: ”The legal record found that the regulatory work of the Commission has been carried out in a proper way and in accordance with the law.
”We will continue to devote our efforts to our day-to-day work, including preparations for the next price cap due next year.”
The first passengers are expected through Dublin T2 in April 2010.