LAST UPDATE | 4 Nov 2024

THE HIGH COURT has paused the implementation of the summer passenger cap on Dublin Airport.

In a ruling today, the High Court granted a stay on the operation and implementation on the passenger cap of 25.5 million that was decided by the Irish Aviation Authority (IAA) in October.

The IAA is responsible for identifying and determining the capacity at Dublin Airport and setting the consequent parameters for slot allocation.

“To take account of the capacity constraint represented by the planning condition set by An Bord Pleanála, the IAA has set a seat capacity limit of 25.2 million seats for the Summer 2025 scheduling season,” said the IAA in a statement in October.

Last week, Aer Lingus, Ryanair and a number of American airlines brought an urgent application over the IAA’s passenger cap over the summer season, which runs from late March to October.

In its application to the High Court, Aer Lingus said the loss of revenue from the passenger cap next year could reach €84 million and increase every year thereafter.

Ryanair meanwhile said it stood to lose around €50 million.

High Court’s ruling

The High Court said “the harm contemplated involves very significant financial loss” but also “interference with what can be described as statutory rights to historic series of slots”.

In a written ruling, Mr Justice Barry O’Donnell said: “The potential consequences of a potential breach of the planning conditions does not outweigh the highly probable and very serious adverse consequences of failing to grant a stay in these proceedings”.

“Those consequences extend beyond the immediate serious effects on the applicants, but include serious disruption for the public and potential harmful effects for the broader economy,” added Mr Justice O’Donnell.

In a statement today, IAA said it “took a neutral position on the stay”.

“The remainder of the IAA’s Summer 2025 slot parameter decision stands and the coordination to that capacity will happen in the coming days in the normal way,” said the IAA.

A spokesperson added: “The IAA notes that the alleged harm identified by the airlines flows from the planning conditions rather than from the IAA taking account of those conditions.”

Transport Ministers’ response

Statement from Minister of Transport Eamon Ryan and his junior colleague in the department Minister of State James Lawless said they welcomed the High Court decision as it gave “much-needed clarity” on the issue.

“We welcome the decision of the High Court today granting a partial stay on the Irish Aviation Authority’s decision concerning slots at Dublin Airport for the summer 2024 scheduling season,” the ministers said in a joint statement.

“It gives some much-needed clarity at this stage and reflects the desire for progress expressed by the vast majority of stakeholders who have been engaged with on the issue.

“We look forward to working again with all stakeholders in the time ahead, as we work towards a solution that respects the planning process while continuing to promote the air connectivity of Ireland to the world.”

Responding to the High Court’s decision, DAA CEO Kenny Jacobs remarked that the “court had a difficult task in considering complex issues of domestic planning law, EU law and international treaties”.

He said today’s decision “will be welcomed by aviation as it brings clarity and allows all parties to move forward and protects jobs and connectivity”.

Jacobs added that the “planning cap remains a significant issue for Ireland, and it is essential the planning regime now moves quickly to fully resolve the issue for the long term”.

Meanwhile, a spokesperson for Aer Lingus said the airline “welcomes the decision to grant a stay on the IAA’s earlier decisions to reduce capacity by removing historic slots at Dublin Airport”.

The spokesperson added that Aer Lingus “will now assess the full implications of the stay being granted, including any potential impacts on decisions that the slot coordinator for Dublin Airport may take as a result”.

Ryanair described the High Court decision as “sensible” and added that the “cap is in breach of EU legislation on Freedom of Movement”. 

A spokesperson said: “Ryanair remains confident that EU law will triumph over the 2007 Fingal planning restriction and will allow airlines to grow traffic and tourism with the benefit of Dublin’s second runway.”

The passenger cap was set at 32 million per year in 2007 and hasn’t been changed since.

DAA said the figure was “largely based on the limitations of the road infrastructure to and from the airport”. 

Ryanair CEO Michael O’Leary described the cap as “idiotic, outdated and damaging”.

He added that the High Court ruling “clears the way for this matter to be referred to the European Courts, where Ryanair is confident that this absurd road traffic restriction from 2007 will be removed”.

Minister of State at the Department of Transport, James Lawless, welcomed the decision also and said it “gives space for the planning authority to do its important work unhindered”.

He added: “It gives some much needed clarity and reflects the desire for progress expressed by the vast majority of stakeholders I engaged with over the last two months on the issue.”

Lawless also remarked that the decision will “avoid an unnecessary economic impact which would not have been good for anyone concerned” and called for a “solution that respects the planning process while continuing to promote the air connectivity of Ireland to the world”.