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Ryanair threatens minister with legal action over charges

Ryanair accused the minsiter of "grossly" exceeding his powers
Ryanair accused the minsiter of "grossly" exceeding his powers

Ryanair has threatened the Minister for Transport, Tourism and Sport with legal action if he does not revoke a direction on airport charges issued to the Commission for Aviation Regulation (CAR) on Monday.

The warning is contained in a letter from Ryanair’s Director of Legal and Regulatory Affairs Juliusz Komorek delivered to Paschal Donohoe's office today.

In the letter, Ryanair accuses the minister of "grossly" exceeding his powers, and warns that if he does not revoke the direction by close of business next Tuesday, 23 September, Ryanair will apply for judicial review.

Mr Komorek says the matter is of extreme urgency as the CAR intends to issue its final determination on airport charges at Dublin airport for 2015-2019 by the end of the month.

Ryanair claims that the minister's direction to the CAR contains specific instructions, which would force the CAR to issue a final determination on airport charges that will contravene the CAR's regulatory objectives.

The company alleges that the directive would require the CAR to permit the DAA to spend at least €41.9m for infrastructure which, it says, the CAR confirmed in its draft determination was unnecessary.

Ryanair also claims the minister's directive would force the CAR to permit the DAA to increase its operational expenditure on security staff, despite the fact that the CAR's independent consultants confirmed that an excessive number of security staff is currently rostered at Dublin airport.

It also claims that a significant reduction is staff was "eminently achievable (and advisable) without impacting security".

Ryanair also insists that the minister's direction would require CAR to permit capital expenditure of "at least €21.5m for infrastructure which CAR in its Draft Determination confirmed was unnecessary”.

Ryanair also criticises potential capital expenditure of €101.5m for infrastructure as unnecessary.

It says the minister's direction will also require the CAR to permit the DAA to fast-track development of a second runway at Dublin airport which could cost €245m, when the CAR confirmed in its draft determination that the second runway would not be required in the near future.

The letter concludes: "Ryanair requests that you revoke the direction to the extent it unlawfully contains the above specific instructions to the CAR by close of business on Tuesday 23 September.

Should you fail to do so, Ryanair will immediately apply to judicially review your unlawful direction."

The letter is also addressed to the Chief State solicitor, the Attorney General, the European Commission, the Commission for Aviation Regulation, the Minister for the Environment Community and Local Government, the Chairman of the Joint Oireachtas Committee on Transport and Communications.

The Department of Transport Tourism and Sport declined to comment on the letter, as did the DAA.