A new agreement that routes 90 per cent of all transatlantic flights through Irish airspace is expected to result in a major revenue boost for the Irish Aviation Authority (IAA).
Under an agreement reached with the UK authorities, the IAA will now control a total of 450,000 square kilometres of air space.
From January 2005 the authority will control an additional area known as NOTA - Northern Oceanic Transition Area.
The chairman of the IAA, Mr Donal Geaney, said: "This agreement is extremely significant for the IAA. NOTA will increase our business, with 90 per cent of all transatlantic flights being controlled by IAA air traffic controllers".
The EU is currently considering the idea of creating large functional airspace blocks. The IAA will now control an important block of strategic airspace that will be significant if the EU proposals go ahead.
Last year the IAA reported turnover of €95.7 million and pre-tax profits of €4.7 million. This is likely to increase greatly in 2005 on the back of the agreement.
The authority makes its money by charging aircraft that pass through Irish airspace.
This is known as an "en route" charge. The charges are based on weight, with most large aircraft attracting a charge of several hundred euros.
In 2002, 85 per cent of the IAA's revenue was earned from transatlantic airlines. Every day a fleet of between 800 and 1,200 aircraft fly through Irish airspace. Between 30,000 and 50,000 passengers travel on these aircraft.
In future, the authority will control airspace in three distinct blocks. The main block will be the Shannon flight information region, flanked by the southern oceanic transition area (SOTA) and the northern oceanic transition area (NOTA).
The new development has been welcomed by the airlines and by the International Air Transport Association (IATA), the airline's representative organisation.
The agreement will allow Irish controllers to offer pilots alternative routes for entry into European airspace. This will allow them to avoid the main congestion areas.
Despite a downturn following September 11th, 2001, air traffic volumes have been growing at rates of between 4 and 5 per cent annually since the late 1980s.
Because of this growth and the need to ensure safety at all times, air traffic in Europe has become very congested, frequently giving rise to delays, as capacity exceeds demand for flights.
The IAA was set up as a commercial State-sponsored body in 1994.
It provides air traffic management, engineering and communications in airspace controlled by the Republic.
It also regulates the safety standards of Irish aviation by monitoring aircraft airworthiness, licensing aircraft maintenance personnel and organisations, and licensing of pilots and aerodromes.
