New DAA boss facing into a hard landing after Kenny Jacobs exit – The Irish Times
A complex series of developments is unfolding around Dublin Airport, centering on a long-standing passenger cap, planning authority, and recent leadership turmoil at the airport’s operator, DAA. The situation has drawn in multiple stakeholders, including airlines, government ministers, and local planning authorities, and is poised for further legislative action.
Shifting Control and the Passenger Cap
For years, DAA sought to bypass Fingal County Council for direct applications to An Coimisiún Pleanála, but this request was denied a couple of years ago when Darragh O’Brien was Minister for Housing. Now, as Minister for Transport and a shareholder for the State in DAA, O’Brien has secured Cabinet agreement to prepare laws to eliminate the 32 million passenger cap at Dublin Airport and shift DAA’s planning authority away from Fingal County Council.
A Contentious History
O’Brien stated his belief that a national infrastructure asset as critical as Dublin Airport should not be under the planning authority of a local council. This move follows the recent resolution of a dispute between the DAA board and former chief executive Kenny Jacobs, a conflict that resulted in over €1 million – and potentially approaching €2 million – in legal costs. Jacobs ultimately stepped down, receiving a settlement “considerably less” than an initial €960,000 proposal and covering his legal fees.
The passenger cap has been breached in the past two years, and is likely to be surpassed again in 2026, putting DAA in violation of planning consents and facing potential enforcement action from Fingal County Council. This has also led to legal challenges from Ryanair, Aer Lingus, and a US airline lobby group, Airlines for America (A4A).
Legal Challenges and Potential Outcomes
A4A filed a complaint with the US Department of Transport, expressing concern that the cap violates EU regulations and US transport agreements. The High Court referred questions regarding European regulations on airport slots to the Court of Justice of the EU in Luxembourg. While an advocate general at the European court found the cap legally sound, this opinion is not binding and could be overturned.
Simultaneously, Fingal planners are reviewing a €2 billion DAA infrastructure application aimed at increasing the airport’s annual passenger capacity to 40 million. This application, submitted in December 2023, is proceeding alongside the proposed shift in planning authority. A previous “no-build” application to lift the cap to 36 million without new infrastructure was dropped after objections from Fingal.
Governance Concerns
The situation is further complicated by upcoming appointments to the DAA board. The terms of several non-executive directors are expiring, potentially leading to a situation where worker-directors could form a majority, deviating from the intended governance structure. A permanent successor to Jacobs also needs to be appointed.
What’s Next?
O’Brien has indicated the new legislation could be enacted by the end of the year. However, he has acknowledged civil service resistance, citing technical legal issues and concerns about public transport connectivity to the airport, with the MetroLink project still years away from completion. If the legislation passes, DAA could then proceed with its expansion plans without the constraint of the passenger cap. However, the future of Anca, the aircraft noise regulator currently within Fingal County Council, remains uncertain.
Frequently Asked Questions
What is the current passenger cap at Dublin Airport?
The current passenger cap at Dublin Airport is 32 million passengers annually.
Who is currently responsible for planning decisions regarding Dublin Airport?
Currently, Fingal County Council is responsible for planning decisions regarding Dublin Airport.
What was the outcome of the dispute between DAA and Kenny Jacobs?
Kenny Jacobs voluntarily stepped down as chief executive of DAA and received a settlement, which, according to Minister O’Brien, was less than the initially proposed €960,000, as well as covering his legal fees.
How will these changes impact the future of air travel to and from Ireland?