Dublin Airport operator settles challenge to airline levy cap
High Court Reporters
The semi-state operator of Dublin Airport has agreed to a strike-out of its challenge to a regulatory decision capping the charges it can levy against airlines until 2026.
The DAA and regulator Irish Aviation Authority (IAA) reached a confidential agreement ahead of what was scheduled to be a three-week trial beginning on Tuesday in the High Court’s commercial division.
Airport charges are payable by airlines for use of the airport’s services and facilities, such as runways and airport security.
The DAA says the levies, which are typically paid indirectly by passengers via their flight tickets, represent about half of Dublin Airport’s revenue.
Its High Court appeal alleged the IAA levy cap, determined in late 2022, would cost it millions and could have detrimental effects for passengers.
Barristers Niall Buckley and Margaret Gray SC, representing the DAA and IAA respectively, informed the court on Tuesday that they had reached an agreement so the case could be struck out.
Airlines Ryanair and Aer Lingus had been joined to the case as parties affected by the decision.
In a press release at the time of the levy decision, Ryanair announced it would support the regulator and argue against passenger charge increases.
After the court was informed of the settlement agreement on Tuesday, Ryanair’s barrister John Kenny told the judge his client wrote to the DAA and IAA querying whether their confidential deal changes the existing Dublin airport charges for the 2023 to 2026 period or includes commitments on the IAA’s determination to be made for the next period.
Mr Justice Michael Twomey congratulated the DAA and IAA on reaching an agreement. He struck out the case but left it open to either side to apply to the court if needed.
In its case, initiated in 2023, the DAA alleged the levy cap decision was corrupted by a series of “significant errors”.
Among these was an alleged mistake in the regulator’s calculation of the number of security lane personnel required at Dublin Airport.
The DAA said it would have to bear the cost of employing additional security personnel to avoid lowering safety and security standards.
The IAA denied the claims.
