Review of airport charge regulation on way

A major shake-up of the way airport charges are regulated in Ireland could be on the way, after Minister for Transport Paschal Donohoe announced that a review is to get under way.

The current system, overseen by the Commission on Aviation Regulation, has proved controversial over the years and has been criticised by airport users.

The review, to be conducted by Indecon consultants, will be completed this year, with a view to any agreed policy changes coming into effect in 2016.

This current system of airport charging regulation involves the setting of a price cap by the Commission for Aviation Regulation (CAR) with the objective of ensuring that charges paid by airlines to Dublin Airport allow the efficient development of the airport.

Charges in other Irish airports are not regulated.

The system has proved controversial since its introduction in 2001.

On a number of occasions, ministers have issued policy directives to the CAR and there have been ongoing objections from airport users, notably Ryanair, with regular appeals and legal challenges.

Aer Lingus, Ryanair, and the Dublin Airport Authority signalled their intention to appeal the proposed charges for 2015-19 but withdrew that request partly due to the proposal for a review of the whole structure.

The review will examine the entire structure of charges and it is likely to focus on how the cheapest possible access to Ireland can be maintained while still supporting the development of the airports.