Ryanair wins appeal

The CAR now has 2 months to implement this ruling which should lead to lower airport charges for users of Terminal 1 and higher charges for users of the over-specified and over-sized Terminal 2. This is consistent with Ryanair's long standing position that its passengers should not be forced to pay higher charges to subsidise the T2 'Taj Mahal' which they neither requested nor will use. It will also, for the first time at Dublin Airport, give effect to the 'user pays' principle.

In its ruling on Ryanair's appeal the Panel stated:

1. "It is precisely because of Dublin Airport's monopoly position that it should strive to cater for different 'airline business models'. DAA's failure thus far to do so has the possible effect that some business models are favoured over others. This in turn implies a potential restriction or distortion of competition in airline markets which the Panel feels should be addressed by the Commission."

2. "While it is open to DAA to charge on a differential basis the Panel believes that the DAA will only do so if it is mandated by the Commission, either in the form of different charge caps for each terminal or alternatively, by introducing incentives into the price cap to encourage DAA to employ differential pricing."

3. "The Panel is of the view that the ability of a regulated monopoly to provide differential services, if that is what customers want, is a very important one - arguably no less important than the pricing for services that are provided. It therefore merits considerable regulatory attention."

Welcoming the Panel's ruling, Ryanair's Juliusz Komorek said:

"Ryanair, the largest user of Dublin Airport, has repeatedly called for a low-cost, efficient facility that would cater to the needs of low-fare passengers. However, the DAA monopoly has ignored our requests and proceeded to build the over-sized and over-specified T2 at a cost of €1.2bn - six times more than the DAA's original promise of between €170m and €200m. The DAA monopoly has repeatedly ignored user requests for differential pricing between T1 and T2, in an anti-consumer move to force passengers of T1 to pay up to 40% higher fees in 2010 to subsidise the DAA's gold-plated T2.

"The DAA's higher fees to pay for this €1.2bn white elephant are accelerating the collapse of traffic and tourism in Ireland as passengers have become more price sensitive in the current recession. We call on the Aviation Regulator to accept the Panel's ruling, require the DAA monopoly to introduce differential pricing and reverse the latest fee increases for T1 passengers, and not - as the Regulator did in 2009 - ignore the Panel's ruling.

"If the Regulator fails to implement the Panel's ruling promptly, it will prove that he is unwilling or unfit to protect the interests of consumers against the wishes of the DAA monopoly and its downtown office, the Department of Transport. Ireland can no longer afford a high cost overspending airport monopoly or the monopoly protectionist policy of the Department of Transport which is damaging Irish traffic and tourism at a time when most other European airports have returned to growth."