Commission announces plan to reduce air traffic control charges

The Commission for Aviation Regulation is set to reduce the charges airlines pay for traffic control in Cork, Dublin and Shannon by 40% over four years.

The determination will come into force on January 1, 2012, and will apply until December 31, 2015.

Air traffic control (ATC) services are used by aircraft landing and taking off from airports.

The first year of the price cap in 2012 will result in a price reduction of approximately 25% on the 2011 price cap.

Thereafter, the cap is expected to fall a further 6% each year.

The significant fall in the 2012 price cap is due to a lower level of investment planned by the IAA for the next regulatory period, compared to when the current cap was set (2007).

In addition, the Commission has "clawed back" revenues collected by the IAA to fund investments it subsequently did not make.

Finally, after 2012, given the sharp traffic decline in recent years, the Commission has set progressively lower operating cost allowances to bring the IAA’s operating expenditures by 2015 back to the level of 2006 when traffic was similar to that expected for 2015.

Air traffic control charges cover all air traffic control (ATC) services used by aircraft landing and taking off from airports.

Charges are levied by the IAA on airlines. The Irish Aviation Authority's charges are separate from the airport charges levied by the DAA. Over-flight or en-route services are not regulated by the Commission for Aviation Regulation.

For the first time, the determination makes collection of the full price cap by the IAA dependent on its meeting certain service quality targets set by the Commission following consultation with the industry.

If the IAA consistently fails to meet the targets set, the annual price cap could be up to 10% lower. The targets act as a financial incentive for the IAA to avoid delays and cancellations due to equipment failure or staffing problems.