As the Dublin High Court prepares to make a critical decision on Monday regarding the imposition of a passenger cap at Dublin Airport, major airlines like Aer Lingus, Ryanair, and a group of American carriers are bracing for potential significant financial losses. The ongoing legal battle, spearheaded by Aer Lingus, seeks to halt the Irish Aviation Authority’s (IAA) decision to limit the number of passengers during the busy summer season.
Paul Sreenan SC, representing Aer Lingus, expressed urgent concerns in court last Friday, warning of a projected revenue loss of €84 million in 2024 and up to €130 million by 2026 if the cap remains. The cap could severely impact the airlines’ operations, particularly their “use them or lose them” policy for securing airport slots—critical assets that require utilization of 80% per season to retain for the following year.
This imminent court ruling follows a contentious IAA decision that sets a 25.2 million seat capacity for the summer, spanning late March to October. The authority had previously set a winter cap of 14.4 million seats, a decision that has also been met with legal challenges from Ryanair and the Dublin Airport Authority (DAA).
The DAA, on the other hand, has raised concerns that even the winter cap might be too high to stay within the annual limit of 32 million passengers—a figure mandated by An Bord Pleanála in 2007 when Terminal 2 was approved. They have also petitioned for an increase to 40 million passengers, citing planning constraints.
The crux of the airlines’ argument is that the IAA should not consider the 2007 planning condition when assessing capacity, a stance supported by Sreenan who emphasized that the focus should remain squarely on the allocation of slots. In contrast, the DAA contends that pausing the summer cap would facilitate breaches of planning conditions, potentially leading to enforcement actions against the airport authority.
The High Court’s decision could have far-reaching implications, not only for the airlines involved but also for the operational dynamics of Dublin Airport and its adherence to regulatory and environmental standards. As airlines and the airport authority await the ruling, the outcome is set to shape the strategic decisions of the aviation sector in Ireland for years to come.
