Aer Rianta going to High Court over ruling on charges

Aer Rianta is to go to the High Court to oppose a ruling on airport charges that cut £726 million (€922 million) from its capital programme. But the State-owned company, which claims it was flabbergasted by the ruling, has abandoned plans to seek the appointment of an ad hoc panel to hear its appeal against a determination on charges by the airports regulator, Mr Bill Prasifka.

A spokesman said the Aer Rianta board had taken legal advice at a meeting yesterday and decided to take court action as soon as possible. The company's chairman, Mr Noel Hanlon, has said the company would be left with facilities worthy of a "shanty town" if it did not continue with its full programme. Board members also discussed a downturn in business that is expected to follow cutbacks by Aer Lingus and other airlines in the wake of attacks on the World Trade Centre and Pentagon in the US. This meant the end of the year would be "bad" and the spokesman said the situation could become worse if the US began to retaliate.

Directors did not discuss suggestions by the Minister for Public Enterprise, Ms O'Rourke, to seek the construction of a second terminal at Dublin Airport.

Ms O'Rourke was expected to bring an information note to Cabinet before next month, although such a move was linked to a projected increase in passenger numbers. Indications from Aer Rianta suggests that is unlikely, although its spokesman said the company had yet to receive revised projections from airlines.

The company has until October 28th to seek a judicial review of Mr Prasifka's ruling, which said only £272 million of a £998 million programme could be recovered from airport charges. The ruling enabled Mr Prasifka to lower average landing charges in Dublin last Monday and impose a rise in Shannon and Cork airports ahead of reductions next year.

Aer Rianta said it would plough ahead with its capital programme regardless of Mr Prasifka's ruling. If necessary, it would sell its Great Southern Hotel group. However, the company was accused by airlines of seeking to "gold plate" its airports. Ryanair said its plans were "absurd" and Aer Lingus said it had not been consulted.

The position of Aer Rianta's chief executive, Mr Burke, was that airlines operated in a medium-term perspective while airports needed to plan 20 years ahead. Such opposition could always be expected.