Aer Rianta case to cost several million euros

Legal fees in an Aer Rianta court action against its regulator, Mr Bill Prasifka, are expected to run into several million euros.

The case between the State-owned airport company and the regulator was to begin in the High Court before Mr Justice O'Sullivan tomorrow but was postponed for one week. While State institutions rarely go to the courts to settle their differences, is understood that there is no dialogue under way to broker a settlement in advance of the case.

Aer Rianta sued Mr Prasifka after he ruled that the airport company could raise only €345 million from landing charges for a capital programme worth €1.28 billion. Mr Prasifka accused the company of gold-plating its airports, a charge it rejects.

The regulator's determination on charges 14 months ago was a severe setback for the company, which has been at loggerheads with the Government over plans for new terminals at Dublin Airport and over a proposal to establish the airports at Shannon and Cork as independent entities.

With Aer Rianta believed to be challenging the 537-page determination on 18 grounds, the case is expected to run until well after Christmas. There is also an expectation that any judgment in the High Court will be appealed to the Supreme Court.

Even if an appeal does not arise, a number of people familiar with the case say that fees paid to barristers and solicitors will be significant.

No matter who wins, however, the fees will ultimately be paid by air travellers using the airports. Aer Rianta's income is derived from the airports and Mr Prasifka's office is funded by a levy charged to airlines.

Mr Prasifka's office alone is understood to have projected expenditure of €1.75 million on the case, slightly more than its ordinary expenditure of €2 million.

A number of top-flight legal figures are involved in the case, in which Aer Lingus and Ryanair are notice parties.

The regulator's team is instructed by solicitors Landwell Solicitors, formerly Evans & Co. Its senior barristers are the AIB chairman-designate, Mr Dermot Gleeson SC and Mr Donal O'Donnell SC.

A junior counsel is also working on the case.

The Aer Rianta team is instructed by Arthur Cox solicitors. Its barristers are Mr Paul Gallagher SC and Mr Paul Sreenan SC. Two junior counsel are working on the Aer Rianta team.

One analysis suggests a preliminary reading of the 30 affidavits so far lodged in respect of the case could take up to five weeks, even before the substantive legal arguments begin.