Aviation panel backs different charge for T2

THE AVIATION Appeals Panel has upheld a complaint from Ryanair and found that passengers using the new Terminal 2 (T2) at Dublin airport should pay a different charge to those travelling through the existing building, from where the Michael O’Leary-led carrier plans to continue operating.

The decision has serious ramifications for the proposed opening of the €609 million T2 in November. It contradicts a key finding by the Commission for Aviation Regulation (CAR) in its determination last year on airport charges in Dublin for the period to 2014. It decided a flat fee should apply across the two buildings.

Aer Lingus, which is earmarked as T2’s anchor tenant, has stated that it will not move to the new facility if differential pricing is introduced. It reiterated that position yesterday. “We don’t believe there should be differential pricing between T1 and T2 and that remains our position,” said Enda Corneille, Aer Lingus’s director of corporate affairs.

The appeal panel’s finding is non-binding and the regulator has two months to decide on its response. This creates uncertainty about preparations for the opening of T2, due to cater for Aer Lingus and long-haul carriers.

The aviation regulator, Cathal Guiomard, could choose to ignore the panel’s finding, as he has done in the past. “No decision has been made yet by the commission on how it will respond on this occasion to the appeal panel’s decision,” CAR said yesterday.

The panel’s findings were not published yesterday but Ryanair did release some extracts.

“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,” the panel found.

The panel comprised three members – senior counsel Michael Durack, Prof George Yarrow and accountant John Butler – and was appointed on March 4th by Minister for Transport Noel Dempsey.

Ryanair has urged the regulator to act on the panel’s finding.

“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,” said Juliusz Komorek, who heads Ryanair’s legal and regulatory affairs.

In a lengthy statement the Dublin Airport Authority (DAA) noted that CAR “previously considered” differential pricing but ruled that “it would be unworkable”.

The DAA said a “single charge” across the two terminals was the “fairest way” for passengers to pay for the airport services. “Optional services such as the use of airbridges are charged separately. This is the typical charging system at most airports worldwide.”

It also questioned how differential pricing could be applied fairly.

“Dublin airport generates two-thirds of its income from commercial activity and this income directly subsidises passenger charges at the airport,” it said.

“Long-haul passengers, who will be the key users of Terminal 2, should arguably, therefore, pay less under any differential pricing model as their commercial activity subsidises passenger charges to a far greater extent than short-haul passengers.”