7th Apr 2008 12:00
Ryanair Holdings PLC07 April 2008 RYANAIR SUBMITS HIGH COURT APPEAL OF AVIATION REGULATOR'S 50% PRICE HIKES AT DAA MONOPOLY Ryanair today, (Monday, 7th April 2008) confirmed that it will submit a HighCourt appeal against the Aviation Regulator's recent decision to rubber stampanother 50% increase in Dublin Airport check in desk charges (trebled from€8,000 to €25,000 per desk in three years), and to approve a new DOUBLE chargefor check-in kiosks, despite the fact that airlines have already fully paid forthis terminal space, through inflated airport charges. These price increases, which are more than 10 times the rate of inflation, meanthat the Regulator is again in breach of his statutory duties to 'protect thereasonable interests' of Dublin Airport users. Instead of regulating the DublinAirport monopoly, Mr Guiomard has conspired with the DAA to rubberstamp furtherunjustified price increases as these facts prove; 1) The DAA monopoly refused to show users the basis for these further abusive price increases and dismissed user requests for this information saying it had been "sent directly to the Aviation Regulator". 2) The Regulator then refused to publish the DAA monopoly's reasons for these price increases. When airport users requested them, he refused, claiming they were 'confidential and commercially sensitive'. 3) Airport users were therefore denied any right to comment on these costs or price increases because they were refused access to them. 4) The Regulator then completed this conspiracy, by refusing to publish any DAA explanation, on the grounds of 'confidentiality'. Ryanair will also challenge Mr. Guiomard's preliminary approval for a new doublecharging self- service kiosk rental in the terminal because: a) The space for these kiosks has been 'free' since 2005 when first introduced. b) All Dublin airlines have already fully paid for this terminal space through inflated airport terminal charges. c) Mr Guiomard himself confirmed on RTE Morning Ireland, that this means airlines and passengers will be "double charged" for this same space. Over the past 5 years this failed Regulator has presided over the followingunjustified increases, at a time when the average annual inflation rate was just4%: • 31% increase in airport charges • 58% increase in car rental levy €100% increase in car parking charges €200% increase in check in desk charges • 4% average annual inflation rate!!! He has also confirmed that the already high passenger charges at Dublin Airportwill double in future to pay for the over specified, over costed €800m Terminal2. Not alone is this Regulator incapable of controlling costs at the Dublin Airportmonopoly, he is also incapable of controlling his own costs. In the last fiveyears, costs at his overpaid, under worked office have doubled from €2m to €4m.Average salaries have more than doubled to over €84,000 each, staff numbers haveincreased by 40% and he wastes €1m p.a. on consultancy fees. Speaking this morning, Ryanair's CEO Michael O'Leary said: "Cathal Guiomard has no credibility as an independent regulator and it is timehe resigned or was dismissed. He is a regulatory poodle, rubber stampingunjustified price increases and double charging at the Government owned DAAMonopoly. Airport costs at most UK and European airports are falling thanks tolower cost facilities and competition. But in Ireland this failed Regulator isallowing repeated, unjustified, inflation busting price increases at the DAAmonopoly. "This expensive and time consuming legal action would not be necessary if theRegulator was complying with his statutory duty to "protect the reasonableinterests of users" from DAA monopoly abuse. However, if this incompetentRegulator and the overpaid, overstaffed, under worked CAR Regulatory regimewon't protect airlines and consumers from this rampant monopoly abuse, thenperhaps the courts will". ENDS Monday, 7th April 2008 For reference: Peter Sherrard - Ryanair, Tel: 01-8121598 Pauline McAlester - Murray Consultants, Tel: 01-4980300 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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