Media

4 November 2009: The Association of European Airlines (AEA) today issued an unwarranted attack on the Irish Aviation Authority (IAA), claiming that Ireland could become a no-fly zone as a result of a 10 Euro government travel tax and a 17% increase in the IAA's user charges. The IAA strongly refutes this alleged 17% increase and hereby sets the record straight.

IAA estimates in June 2009 of cost base and traffic forecasts for 2010 indicated that the en-route unit rate for 2010 would increase by 17.5% over the 2009 rate, largely due to the forecast fall in traffic. However, the IAA fully accepts that such an increase could not be sustained by our customers, the airlines, and has worked hard through a series of cost containment measures to reduce this increase to about 3.9% which is consistent with similar Air Navigation Services Providers in Europe who have received no Government assistance. Our cost containment programme compares favourably with any in Europe and includes continuation in 2010 of a pay freeze, CAPEX reductions and improved operational efficiencies.

The IAA main user charge known as the en-route unit rate is one of the lowest in Europe and has consistently been so for many years. The AEA in making its claims used out-of-date estimates from last June rather than check the current information which was supplied recently to EUROCONTROL. Furthermore, both the North Atlantic Communications and all Safety Regulation charges remain frozen for 2010 at 2009 rates, a fact that was conveniently ignored by the AEA.  IAA terminal rates are independently regulated by the Commission for Aviation Regulation (http://www.aviationreg.ie/ ) and a determination is expected in December.

                                                                                   *source EUROCONTROL

The IAA receives no exchequer funding whatsoever unlike many of our European counterparts who have obtained Government assistance with reducing their rates.

The IAA has communicated individually with each of its major customers through its Customer Care programme as well as airline representative bodies such as IATA.

Notwithstanding the various cost containment measures referred to above, the IAA continues to strive to deliver operational efficiencies which will deliver operational cost savings to its airline customers.

The Ireland/UK Functional Airspace Block will deliver the ENSURE project commencing in December 2009 which will remove air routes from Shannon Upper Airspace and allow direct routing and flight planning from entry point to exit into UK airspace. It is estimated that this initiative will deliver the following benefits to airlines in 2010:

• Route distances saved of 2.2 million kilometres
• Fuel savings of 14,800 tonnes
• CO2 savings of 46,800 tonnes
• Flight time savings of 195,500 minutes

The IAA is committed to continuing to provide safe and efficient air traffic management services to its customers and also to doing all in its power to minimize costs in the current economic climate.

ENDS

For further information contact:

Lilian Cassin

Corporate Communications Manager

Tel: + 353 61 366 226 / + 353 87 647 4079