DUBLIN, Ireland: The Dublin Airport Authority (DAA) has resolved its legal challenge to a regulatory cap on airline levies, ending a contentious case just before it was due to go to trial.

The semi-state operator and the Irish Aviation Authority (IAA), which regulates aviation in Ireland, reached a confidential settlement ahead of a scheduled three-week hearing in the High Court's commercial division. The agreement resolves a dispute over the charges airlines pay for services and facilities at Dublin Airport, including runways and security, which constitute about half of the airport's revenue.

The DAA had argued that the levy cap, set by the IAA in late 2022, would cost the airport millions and negatively impact passengers. The case, initiated in 2023, claimed the cap was based on "significant errors," including an alleged miscalculation of the number of security personnel needed to maintain safety standards.

On Tuesday, barristers Niall Buckley and Margaret Gray SC, representing the DAA and IAA, respectively, informed the court that an agreement had been reached, allowing the case to be struck out. Airlines Ryanair and Aer Lingus, which had joined the case as affected parties, were also present.

Following the settlement announcement, Ryanair's barrister, John Kenny, queried whether the confidential agreement would affect current charges or influence future regulatory decisions for the 20232026 period.

Ryanair had previously supported the regulator's decision and opposed any increase in passenger charges, stating in a press release that it would argue against higher levies.

In its legal filings, the DAA alleged that the levy cap forced it to cover the costs of additional security staff to maintain standards, which it claimed placed an undue financial burden on the airport. The IAA denied these allegations.

Justice Michael Twomey commended both parties for reaching an agreement and officially struck out the case. However, he left the option open for either side to return to court if further issues arise.

The resolution ends a dispute that raised concerns about balancing operational costs at Dublin Airport with maintaining competitive airline charges, a critical factor for Ireland's aviation industry.