Ryanair seeks to overturn new airport scheme

Ryanair has brought High Court proceedings challenging a new scheme for the allocation of take-off and landing spots at Dublin Airport.

Bill Shipsey SC, for Ryanair, yesterday secured leave from Mr Justice Liam McKechnie to bring proceedings aimed at overturning a decision to the Commission for Aviation Regulation, made on April 21st last, to redesignate Dublin Airport as a "co-ordinated" rather than "schedules facilitated" airport in relation to the allocation of airport slots.

The regulator's decision, which does not come into operation until summer 2006, means slots will be allocated on a prescriptive basis by a schedules facilitator independent both of the airport authority and the airlines rather than by consensus between airlines.

Airlines generally prefer a "schedules facilitated" to a "co-ordinated" regime because it offers them greater flexibility in scheduling.

Ryanair argues redesignating the airport is outside the powers of the regulator under the relevant European regulation and under the Aviation Regulation Act 2001 and is an irrational and unreasonable decision.

It contends that the commission was required to carry out an up-to-date capacity analysis prior to sanctioning the redesignation and could not rely on an analysis carried out by a consultancy firm which had made a report in July 2004.

That report had concluded there were no grounds for altering the designation of the airport at that time but had said there could be grounds for such an alteration in certain circumstances, including a relaxation of the Shannon stopover or in relation to the scale of refusals of slots offered to airlines.

On the basis of that report, the commission in October 2004 decided not to alter the designation of the airport. However, on the basis of the second qualification in the report - related to the sale of refusals of slots - the commission redesignated the airport last April.

Mr Shipsey said Ryanair was arguing the commission was not entitled to rely on the July 2004 report to make that redesignation in circumstances where the 2004 report related to a through capacity analysis carried out last year.

There was no power to alter the designation on the basis of anticipating that efficiency might be compromised. Nor had the commission consulted with other airport users and carriers in reaching its decision.

After granting leave to bring the judicial review proceedings, the judge returned the matter to July 6th.

Ryanair will exercise options to acquire a further five new Boeing 737-800 aircraft, worth more than $286 million (€236 million), to continue expanding its European routes. The airline said yesterday the aircraft will be delivered from February 2007 onwards.

Chief executive Michael O'Leary said the 737-800 had the lowest operating costs per seat of any aircraft and the new aircraft would enable Ryanair to develop more new routes.