Fears lower price cap may threaten flight safety

THE Irish Aviation Authority (IAA) has warned the Commission for Aviation Regulation (CAR) that a proposed price cap for its air traffic control services could jeopardise the safety of flights using Irish airspace.

The CAR has recommended increases ranging from 6.7% to 14% in the charge to airlines for navigation services provided by the IAA to take effect from later this month.

However, the IAA has expressed concern that the proposed lower increase from €1.94 to €2.07 per tonne of departing aircraft is insufficient to maintain and enhance existing safety levels of its operations.

“The lower of these price caps would result in a serious shortfall in revenue which would jeopardise the safety and effectiveness of terminal services at the three State airports of Cork, Dublin and Shannon,” said the IAA’s chief executive, Eamonn Brennan.

“The authority would be required to reduce the levels of service in order to maintain safety levels,” he added.

The IAA has also questioned the CAR’s ability to properly assess the level of charges on the grounds of safety.

“We do not consider that the commission has the background or expertise to make a determination based on safety criteria,” said Mr Brennan.

He claimed the CAR risked overriding the IAA’s own judgement if it did not award an increase in charges necessary to fund the authority’s planned expenditure for the maintenance and enhancement of safety.

The IAA also partly blamed over-optimistic estimates by the CAR on air traffic levels for its failure to recover €2.9m in costs in the period up to December 2005.

Ryanair has threatened the CAR with legal action if it sanctions either proposed price caps, which provide for 33%-85% increases over a five-year period.

The Aviation Commissioner, Cathal Guiomard, is to decide on the new price limit by March 26.

Favouring the proposed higher price cap of €2.21 per tonne, the IAA points out that its costs are among the cheapest for any airports within Europe. The average cost of aviation terminal service charges at Cork, Dublin and Shannon is just under €130 for a Boeing €737. The charge for the same aircraft is 146 at Heathrow, Gatwick and Stansted, €250 in Paris and €351 in Amsterdam.