ANNUAL T 2018 - Aviation Reg Annual Report... · 2020. 7. 31. · 2 Commission for Aviation Regulation Annual Report 2018 Foreword In 2018 passenger numbers at Dublin airport increased

Commission for Aviation Regulation Annual Report 2018 i

ANNUAL REPORT2018

Commission for Aviation Regulation Annual Report 2018ii

Commission for Aviation Regulation Annual Report 2018 1

Contents

01 About the Commission for AviationRegulation 3 KeyStatistics 502 Airport Charges andSlotRegulation 603 Air Carrier Licensing and GroundhandlingApprovals 1104 TravelTradeLicensing 1605 AirPassengerRights 2006 CorporateServices 2407 FinancialInformation 2808 Appendix 34 OrganisationChart 47

Commission for Aviation Regulation Annual Report 20182

Foreword In2018passengernumbersatDublinairportincreasedby6.5%,to31.5million.Duetotheon-goingandstronggrowth,wemadetheregulatorymodelmoreflexibletoallowDublinAirporttocarryout some necessary capital investment to relieve constraintsattheairport.InJune,weapprovedacapitalprogrammeof€269.3million.InNovember,DublinAirportsubmitteda€1.7billiondraftcapitalinvestmentplanfortheperiod2020-2024;forconsultationwithairlinesandotherstakeholders.WewillreviewthefinalsubmissionindetailandinSeptember2019wewillpublishadecisiononthemaximumlevelofairportchargesatDublinAirportfrom2020.

InSeptember,weestablishedaPassengerAdvisoryGroup to improve our understanding of passenger requirementsinourdecisionsfortheairport.Themain topics that the group will consider are quality ofservicelevelsandkeyinfrastructureprojects.This group consists of thirteen organisations that representadiverserangeofpassengersatDublinAirport.

In2018wereceived2,319validpassengercomplaintsagainstairlineswhichwas56%higherthanin2017.Thevolumewereceivehasgrownsignificantlyinthelasttwoyearsandhasimpactedonhowquicklywecandealwitheachcomplaint.Weputin place a plan to deal with the backlog of complaints andthisisworkingwell.WealsoplantostrengthenourAirPassengerRightsteam,inQ12019,todealwiththeincreaseinvolume.

Thisyearweissuedlicencestoandfinanciallymonitored16aircarriersand45groundhandlers.While,therewasnosignificantincreasecomparedto2017,wehavereceivedanincreasingnumberofqueries from parties considering entering the Irish market.Inaddition,duringtheyearwefocusedontheimplicationsforIrish-licensedairlinesiftheUKbecomesathirdcountry.Thiswillcontinuetofeatureinourworkplansfor2019.

In2018,welicensed231touroperatorsandtravelagentsinthetraveltrade.ThePackageTravelDirective(settingoutconsumerprotectionarrangementsifatravelfirmbecomesinsolvent)appliedinallMemberStatesfromJuly.Asaresult,30companies,establishedinotherMemberStates,didnothavetorenewtheirlicencesinIreland.In2019,wewillkeepthisunderreview.

Duringtheyeartherewerethreecollapsesinthetraveltradeindustry;PremierIrishGolfToursLimited,SindacoLimitedandHeffernan’sShippingandTouristAgencyLimited.Wereceived345claimsinrelationtotheseandusedtheTravellers’ProtectionFundtohelpsettletheseclaims.Iwouldliketoacknowledgethe assistance provided to us by Cello Aviation Limitedtorepatriate141passengersfromBulgariaand Aer Lingus for providing preferential fares for an additional59passengers.

In2019,wewillcompleteourreviewofthetraveltrade insolvency protection arrangements that applyinIreland,adviseDTTASonanyamendmentsthat need to be made to ensure compliance with thePackageTravelDirectiveandimplementanynecessarychanges.

Finally,throughouttheyearweworkedcloselywithDTTASandourIAAcolleaguestoprogressthe regulatory reform process which will result in the merger of the Commission and the Safety RegulatoryDivisionoftheIAA.Todateworkhasprogressed in the areas of organisational design and draftlegislation.Wewillcontinuewiththisregulatoryreformworkin2019withtheobjectiveofhavinganewaviationregulatorin2020.

Cathy Mannion Commissioner


01About the Commission for Aviation Regulation


1.AbouttheCommission for Aviation RegulationTheCommissionisIreland’sindependenteconomicaviationregulatorandwasestablishedin2001.TheCommission’sresponsibilitiesareoutlinedbelow.

Airport Charges and Slot Regulation

● ●SetsandmonitorsapricecaplimitingtherevenueperpassengerthatDAAcancollectfromairportchargesatDublinAirport.

● ●EnsurescompliancewiththeEuropeanAirportChargesDirective,whichsetsoutminimumstandardsinrelationtoconsultationandnon-discrimination.

● ●Approves,asrequired,thechargesairportslevyon airlines to fund services for passengers with reducedmobility.

● ●ApprovesfeeschargedbytheairportauthoritiesatDublin,CorkandShannonairportsforaccess to installations needed to provide groundhandlingservices.

● ●DesignatestheschedulingstatusofIrishairportsundertheSlotAllocationRegulation,appointinga schedules facilitator or coordinator where necessary.DeclaresthecoordinationparametersforDublinAirport.

Licensing and Approvals ● ●LicensesIrish-basedaircarrierstransportingpassengers,mailorcargoforremunerationand/orhire.

● ●Licensestravelagentsandtouroperatorssellingoverseastravel.

● ●Administersabondingschemefortravelagentsand tour operators and processes claims if travel agentortouroperatorgoesoutofbusiness.

● ●Investigatesinstancesofallegedillegaltradingandprosecuteswherenecessary.

● ●GrantsapprovalstocompaniesengagedingroundhandlingactivitiesatDublin,CorkandShannonairports.

Air Passenger Rights ● ●Investigatescomplaintsaboutflightcancellations,delaysofatleasttwohoursandinstances of denied boarding or downgrading forallflightsduetodepartfromIrishairportsandforflightsarrivingintoIrishairportsfromnon-EUcountries(ifoperatedbyEU-licensedcarriers).

● ●Investigatescomplaintsrelatingtotheassistancereceived by passengers with reduced mobility whenmakingareservation,travellingthroughanairportwithinIrelandorboardingaflightleavingfromanIrishairport.


We license 16 Irish-based Air Carriers

In 2018 we investigated 14 submissions regarding the rights of persons with reduced mobility

In 2018 we handled 4,420 queries from the public on air passenger rights and obtained €458,817 for passengers affected by flight disruptions

We licensed and bonded 231 travel firms

In 2018 we established a new Passenger Advisory Group with 13 organisations that represent the diversity of passengers at Dublin Airport.

We have approved 45 Groundhandling companies

Key Statistics


02Airport Chargesand Slot Regulation


2.AirportChargesand Slot RegulationAdrian Corcoran is the Director of Economics. He is responsible for the economic regulation of Dublin Airport, slot coordination and the setting of capacity at Dublin Airport. He was appointed to this role in December 2014 after previously working as an economist at the Commission. He holds a PhD in Economics.

2.1. Delivery against Strategic PlanThe key strategic goal for the economics section is toenableefficient,high-qualityandsafetyconsciousairportservices.Centraltoachievingthisgoalarethreeobjectivesandseveralactions(seeChart1).1

The following paragraphs summarise the work undertakenin2018groupedbyeachoftheseobjectives.

2.2. Set Efficient Charges at Dublin Airport 2.2.1 Set a price cap for Dublin Airport

In2019,wewillsetanewpricecapthatwilltakeeffectfrom1January2020.Inpreparationforsettingthenewpricecap,webeganengagingwithstakeholdersin2018.InApril,wepublishedanissuespaperthatsoughtstakeholderviewsonthehigh-levelregulatorypolicies,methodologyanddatasourcestobeusedinarrivingatthenewpricecap.2

1 The appendix to this report summarises the work we have undertaken in 2018 and how this work aligns with our Strategic Plan 2017-2019.

2 www.aviationreg.ie/_fileupload/2019%20 Determination/2018-04-30%20CP7%20Issues%20Paper.pdf

ExamplesofthetopicsdiscussedintheIssuesPaperare:

● ●Themethodologyforpassengerforecastsandtheallowedcostofcapital.

● ●Theassessmentandregulatorytreatmentforoperatingcostsandcapitalexpenditure.

● ●HowweshouldmonitorqualityofserviceatDublinAirport.

● ●Theassessmentoffinancialviability.

InJuly,wepublishedthefivesubmissionsreceivedfromAerLingus,DublinAirport,IrishAirLinePilots’Association(IALPA),InternationalAirTransportAssociation(IATA)andRyanair.3 We will carefully consider these submissions and our ongoing engagement with stakeholders in drawing up the draft Determinationonthenewpricecap,tobepublishedinApril2019.

3 www.aviationreg.ie/regulation-of-airport-charges-dublin-airport/2019-determination.841.html

Adrian Corcoran Director of Economics

Economics GoalEfficient, high-quality and safety conscious airport services

Objective 1. Set Efficient Charges at Dublin Airport

Objective 2. Increase stakeholder involvement in decision-making

Objective 3. Promote competition and facilitate new entry

Commission objective 2. Consult Effectively with stakeholders and achieve best international practice

Chart 1: 2018 Strategic objectives


AttheendofJuly,theDepartmentofTransport,TourismandSportnotifiedusaboutthepolicystatements that we should have regard to when makingthe2019Determination,namelythe2015NationalAviationPolicyandtheNationalPolicyStatementonAirportCharges.4

In2018,wecommencedworkonallthebuildingblockswhichwillleadtothepricecap.ThisworkwillcontinueuptoSeptember2019whenwewillpublishourfinalDeterminationofthemaximumlevelofairportchargesforDublinAirport.

2.2.2 Regulate and monitor the cost-efficient provision of capital projects

InDecember2017,DublinAirportsoughtaninterimreview for a supplementary capital expenditure allowanceof€284mtodeliverasuiteof23projects termed the Programme of Airport Campus Enhancement(PACE).5

InFebruary2018,wepublishedadraftdecisionontheestimateofefficientcostofdeliveringallprojectsand our proposed regulatory treatment of these allowances.6AerLingus,DublinAirport,Emirates,EthiopianAirlines,Etihad,IrishAviationAuthority,IALPA,RyanairandStobartAirrespondedtotheconsultation.

InJunewedecidedonacostallowanceof€269.3m,basedonsubmissionsreceivedandonourassessmentoftheefficientcost.7 Following our decision,inthesecondquarterof2018westartedpublishing quarterly reports on the progress made byDublinAirportindeliveringeachapprovedcapitalproject.8Airfieldprojectsrepresent82%oftheallowances:51%correspondtostandprojectsand31%totaxiwaysandotherairfieldprojects.Allowancesforpassengerprocessingintheterminalsrepresent19%.Chart2showstheprojectallowancesclassifiedintothesethreecategories.

4 www.aviationreg.ie/_fileupload/2019%20Determination/2018-07-23%20FT%20to%20CM%20re%202019%20Determination.pdf

5 www.aviationreg.ie/_fileupload/PACE/20180118%20DAP%20PACE%20Submission%20to%20CAR%20corrected.pdf

6 www.aviationreg.ie/_fileupload/PACE%20Draft%20Decision/2018-02-20%20Draft%20Decision%20final%20draft.pdf

7 www.aviationreg.ie/_fileupload/PACE%20final%20decision/Final%20Decision%20Final%20Draft.pdf

8 www.aviationreg.ie/regulation-of-airport-charges-dublin-airport/compliance-papers.123.html

Chart 2: Supplementary Capital Expenditure Allowed

Airfield/Taxiways€82.8m

Passenger Processing€50.5m

Stands€136m

2.2.3 Monitor Compliance of Dublin Airport with the 2014 Determination

In2018,wepublishedquarterlyresultsofqualityofservicemonitoringinrelationtosecurityqueuetimes,baggage handling facilities and passenger survey results.9 The annual price cap is adjusted on each occasionthatDublinAirportdoesnotmeetanyofthequalityofservicetargets.Oneofthetargetsisthatthesecurityqueuemustnotexceed30minutesinaday.In2018,thequeueinTerminal1exceeded30minutesin four dates:

● 12May-55minutes, ● 27May-31minutes, ● 9June–30minutesand8seconds,

● 29September–32minutes.1011

Consequently,theannualpricecapfor2018wasreducedby0.2%,whichresultsinabout€600,000inforegonerevenue.DublinAirportmetallothertargets.

2.3. Increase stakeholder involvement in decision-making2.3.1 Encourage increased level of consultation and transparency on airport charges and infrastructure proposals

InOctober,wesetoutguidanceforthe2018annualconsultationonairportcharges.First,DublinAirportshould consult on the structure and level of the overall airport charging strategy while focusing on thejustificationofanyproposedchangesortheintroductionofnewchargesorincentiveschemes.

9 www.aviationreg.ie/regulation-of-airport-charges-dublin-airport/quality-of-service-.820.html

10 www.aviationreg.ie/_fileupload/QoS/2018-07%20DUB%20QoS%20Q2%202018.pdf

11 www.aviationreg.ie/_fileupload/2018/2018-07%20DUB%20QoS%20Q3%202018.pdf


Chart 3: 2018 security queue times

0

10

20

30

40

50

J F M A M J J A S O N D

Terminal 1 Terminal 2 Max

Note: The security queue in Terminal 2 exceeded 30 minutes on the 3 March due to severe weather conditions. Therefore, there will be no price adjustment in relation to this day.

Second,theAirportshouldjustifyanyproposedchanges in the charging strategy based on the criteria intheAirportChargesDirective.Inparalleltoourdevelopmentoflocalguidelines,inDecember2018theThessalonikiForumpublishedEuropean-widerecommendationsinrelationtoassessingnon-discriminationundertheDirective.

Evaluation of the 2018 Annual Consultation

InNovember,weobservedtheannualconsultationofairportchargesatDublinAirport.Aheadoftheconsultation,DublinAirportreceivedfourairlineresponses,whichrepresented74%ofpassengertraffic.Attheconsultationmeeting,DublinAirportdiscussedandjustifiedthemenuofcharges,includingincentiveschemes.TheAirportalsoprovidedanupdateonthedeliveryofcapitalinvestmentprojects.TheAirportshowedthe2019forecastrevenuetoairlines.

Asnotedabove,from2020therewillbeanewpricecapinplaceatDublinAirport.Theannualconsultationthatwilltakeplacein2019,inrelationto2020airportcharges,willbeanopportunityforDublinAirporttocomprehensivelyreviewthechargingstrategy.

CIP2020+ Consultations

InNovember,DublinAirportsubmittedaCapitalInvestmentPlanfor2020-2024.12 The proposed projects in this CIP consultation comprise:

● 73coreand15revenuegeneratingcommercialprojectswithanestimatedcostof€580m.

● 20capacityprojectsestimatedtocost€876mforterminalrelatedprojectsand€210mforairfieldrelatedprojects.

12 www.aviationreg.ie/_fileupload/2019%20Determination/Dublin%20Airport%20Consultation%20-%20CIP%202020%20.pdf

From3to6December,DublinAirportconsultedwithusersontheaboveprojects,aswellasonadditionaloptionalprojectswithanestimatedcostof€1billion.Wechairedthemeetingsonthosefourdays.WeexpectDublinAirporttomakeafinalregulatorysubmission to us taking account of views and needs of passengersandairlineusers.

2.3.2 Examine how to better engage the passenger in the regulatory process

InSeptember,wedecidedtoestablishanewPassenger Advisory Group which gives passenger representativesdirectinputtothe2019Determinationprocess.13 The group consists of thirteen organisations thatrepresentadiverserangeofpassengersatDublinAirport:

● ●NationalandInternationalleisurepassengers,includingfamilies,arerepresentedbytheConsumer’sAssociationofIreland,theEuropeanConsumerCentreandFailteIreland.

● ●YoungpassengersarerepresentedbytheNationalYouthCouncilofIrelandandtheelderlybyAgeAction.

● ●PeoplewithreducedmobilityordisabilitiesarerepresentedbytheNationalDisabilityAuthority,theDisabilityStakeholdersGroup,theIrishSocietyforAutism,theNationalCouncilfortheBlindIrelandandAlzheimer’sEurope.

● NationalandInternationalbusinesspassengersarerepresentedbytheIrishBusinessandEmployersConfederation(IBEC),ChambersIrelandandIreland’sinwardinvestmentpromotionagency(theIDA).

13 www.aviationreg.ie/_fileupload/2018/2018-09-27%20CP12-2018%20Decision%20Passenger%20Engagement.pdf


The group is tasked with improving our understanding of passenger requirements in our decisions for the airport.Themaintopicsthatthegroupwillconsiderarequalityofservicelevelsandkeyinfrastructureprojects.

AtthefirstmeetinginNovember,thegroupdiscussedexisting and possible new measures of quality of servicethatweshouldmonitor.

2.4 Promote competition and facilitate new entry 2.4.1 Declare Slot Coordination Parameters at Dublin Airport to optimise the use of infrastructure, facilitating new airline entrants.

InMarch,wepublishedafullcapacityassessmentofDublinAirport.14 This assessment will assist us in declaring Slot Coordination parameters for future seasons.

InMayandSeptember,wedeclaredthecoordinationparametersfortheWinter2018andSummer2019schedulingseasons.1516 These declarations involve significantengagementbetweenstakeholders.Weallowedforsometargeted,incrementalincreasesinthenumberofaircraftwhichcanoperateatDublin;ourapproach,informedbysimulationmodelling,isto strike an appropriate balance between facilitating newentrantsandensuringthatdeliveringtheflightscheduleisoperationallyfeasible.

InSeptember,weapprovedandpublishedaLocalGuideline,asprovidedforintheSlotRegulation,inrelationtoDublinAirport.Thisguidelineallowstimecriticaloperations,forexampletechnicalflightsorflightstorecoverpassengersimpactedbyanunforeseenevent,tobeallocatedaslotabovethenormalparameters(maximumoneoverageperhour).Therulehasbeenineffectfrom1October2018.

2.5 Regulation that Represents Best International Practice2.5.1 Actively participate in the Thessaloniki Forum of European Airport Charges Regulators and the evaluation of the Airport Charges Directive

InDecember,theThessalonikiForumofEuropeanAirport Charges Regulators published two guidance reportswrittenbyaworkinggroupoftheForum,whichwechaired.Thefirstreportdiscussestheuseof selective criteria in the context of the economic regulationofairports.Thereportdiscussestheuseof

14 www.aviationreg.ie/_fileupload/Helios%20capacity%20assessment%20workstream%202/P2410D008_Final_Report_v1_5_1%20(clean).pdf

15 www.aviationreg.ie/_fileupload/W18%20Slot%20Parameters/Final%20Decision%20W18%20Mastercopy.pdf

16 www.aviationreg.ie/_fileupload/S19%20Final%20Parameters/Final%20Decision_S19%20Parameters.pdf

criteria in the following circumstances:

● Todistinguishairportslikelytohavesignificantmarketpowerfromthosewhicharenot,toinformdecisions on whether to conduct a market power assessment.

● To decide on an appropriate form of economic regulation,oralternativelythatfurtherregulation,beyond the behavioural type regulation set out in theAirportChargesDirective,isnotrequired.17

Thesecondreportrecommendshowtoassessnon-discriminationinairportchargesundertheDirective.Thereportsetsoutanexampleofaneffectiveprocessforinvestigatingacomplaintrelatingtodiscrimination.18

In2019,theForumwillworkonregulatoryremediesandbenchmarkingairportcharges.

2.6. Looking ForwardSettingapricecapisasignificantundertaking,withconsequencesfortheairport,passengers,airlinesandnationaleconomicdevelopment.Pricecapdecisionsmayaffecttheattractivenessoftheairporttoairlinesandtheabilityoftheairporttodeliverconnectivity.

In2019wewillsetanewpricecapforDublinAirportcommencingin2020andlasting4plusyears.Wewillconsiderrevenuesintheregionof€2billioninthenextregulatoryperiodanda€1.8billioninvestmentplan which has the potential to serve passengers for decadestocome.

Extensiveconsultationwillcontinuein2019.InFebruaryandMarch,wewillmeetwiththePassengerAdvisory Group to discuss and evaluate the proposals ofDublinAirportoncapitalinfrastructureprojectsand the future measures and targets of the quality of serviceregime.

WeaimtopublishadraftdeterminationinApril2019.Stakeholders will have the opportunity to make submissionstous.InMayandJune,wewillmeetwiththe Passenger Advisory Group to discuss and evaluate theproposalsinourdraftDeterminationaboutthe allowed infrastructure projects and the future measuresandtargetsofthequalityofserviceregime.

WeplantopublishthefinalDeterminationinSeptember2019.ThisDeterminationwillconsiderthefeedback that we receive from stakeholders and the PassengerAdvisoryGroup.

Aswellasthe2019Determination,wewillalsodecideonCoordinationParametersfortheWinter2019andSummer2020seasonsandcontinuetocontributetotheworkoftheThessalonikiForum.

17 http://www.aviationreg.ie/_fileupload/2018/Criteria.pdf

18 http://www.aviationreg.ie/_fileupload/2018/Incentives%20and%20Discounts.pdf


03Air Carrier Licensing and Groundhandling Approvals


3.AirCarrierLicensing and Groundhandling ApprovalsDavid Hodnett is the Commission’s General Counsel and Deputy Commissioner. A solicitor, he joined the Commission in 2003. He is responsible for Legal Affairs, Air Carrier Licensing, Groundhandling Approval and Air Passenger Rights.

3.1 IntroductionLicensing and approval regimes for air carriers and groundhandlers are administered in Ireland by the Commission.Thetablebelowsummariseslicensingandapprovalactivityduring2018.Duringtheyear,licence and approval holders were monitored for compliance with the legislative regimes governing thesesectors.

Table 1: Number of Licences and Approvals, 2018

Air Carriers

Groundhandlers

Self- handlers

Third Party

Licenceholders,1Jan2018

15 10 37

Newlicences/approvals

1 0 1

Licencesrevoked/surrendered

0 1 2

Licenceholders,31Dec2018

16 9 36

3.2 Air Carrier LicensingAttheendof2018,16Irishbasedaircarrierswere licensed by the Commission to engage in commercialairtransportoperations.Duringtheyear,theCommissionreceivedtwoapplicationsforanoperatinglicence(bothCategoryA19).Anewoperating licence was issued in the case of one application(toHibernianAirlinesLimitedinNovember2018)andthesecondapplication(submittedinDecember2018)remainedinprogressattheendof2018.AfulllistofuptodateoperatinglicenceholdersisavailableontheCommission’swebsite.

19 Category A Licence Holders are permitted to carry passengers, cargo and/or mail on aircraft with 20 seats or more and/or over 10 tonnes MTOM (maximum take-off mass).

All licence holders were subject to regular monitoring to ensure compliance with the relevant licensing legislationconcerningfinancialfitness,insurancecoverandownershipandcontrol.Wecontinuedtocloselymonitorthefinancialsituationofaircarriers,particularlythoseinaweakerfinancialposition,throughthesubmissionofmorefrequentfinancialdataandregularmeetings.

We also carried out compliance visits to two licensed aircarriersduring2018.

Licences are subject to a review two years after they arefirstgranted.In2018,onesuchreviewtookplace.Therewasnochangetotherelevantlicence.

Toprovideareadilyidentifiablemeansofconfirminganoperatorislicensed,smallaircraftandhelicopteroperators were issued with licence discs to display in each of their registered aircraft as listed on their AirOperatorsCertificateissuedbytheIrishAviationAuthority.

Air Carrier Licence Disc

Wereceivedonerequestduring2018fromanexisting licence holder for approval to wet lease aircraftregisteredoutsidetheEuropeanUnion.Approvalwasgrantedinrespectofthisrequest.

David Hodnett Deputy Commissioner


Wealsoreceivedfivesubmissionsduring2018fromIrishaircarriersmadeunderArticle8(5)oftheLicensing Regulation which requires the Commission tobenotifiedinadvanceofanysubstantialchangesinthescaleoftheiractivities,20 in advance of any intendedmergers/acquisitionsorwherethereisachangeinownership.Inadditiontotheaircarriersettingouttheprecisechangesindetail,theCommission can require the submission of a revised businessplanifthechangesnotifiedaredeemedtohaveasignificantbearingonthefinancesofanaircarrier.Wherechangesrelatetotheoperationofnewaircraft,theCommissionisrequiredtoexamineinsurance details to ensure they meet the relevant requirements and details of the method of acquisition (e.g.purchase/leasing)andthetermsandconditionsassociatedwiththecontract.

Table2belowshowsasummaryofthenumbersofsubmissionsconsideredunderthisArticlein2018bytypeofnotification:

Table 2: Article 8 (5) Submissions 2018

Article 8 (5) Notification Type Number of submissions

2018

In advance of any substantial changes to scale of activities (includeschangesinthetypeornumberofaircraftused)

3

In advance of any intended mergers or acquisitions

0

Change in ownership and control 2

In line with our strategic objectives as set out in our StrategicPlanfor2017-2019,wecontinuedwithareview of our systems and internal processes in order toachieveourobjectiveofoperatinganefficientlicensing system and to make sure we are being effective.Aspartoftheactionpointsidentifiedfor2018forthisreview,weupdatedourfilesinrelationto the continued compliance of Irish air carriers with thegoodreputerequirementsunderArticle7ofRegulation(EC)No1008/2008.

This exercise required all Irish licensed air carriers to provide evidence that the persons who continuouslyandeffectivelymanagetheoperationsofthecompanyareofgoodrepute.Inaddition,we designed a compliance calendar for issuing tolicenceholdersinearly2019whichhighlightskeycompliancedatesarisingduringtheyear.The compliance calendar will be accompanied by a summary of all monitoring and compliance

20 The relevant changes can include the operation of a new air service to a continent or world region not previously served, changes in the number of aircraft operated or their type or any other change in the scale of its activities.

requirements which arise and a list of events which requirepriorapprovalfromornotificationtotheCommission.

InNovember2018,weissuedapapertoIrishaircarriersonthenewleasingaccountingstandard,IFRS16,andwhatitmeansfortheaviationindustryandinthecontextoftheCommission’sroletomonitorongoingcompliancewiththefinancialfitnessrequirementsunderRegulation(EC)No1008/2008.Asregardsnextsteps,theCommissionhas requested an assessment from all Irish air carriers inrelationtotheexpectedimpactonthefinancialposition and performance of the airline as a result of theimplementationofIFRS16by30thJune2019.

We have also taken the opportunity as part of this request to update our records regarding the method of acquisition for each aircraft operated by Irish air carriers which relates to the core requirement on possession of aircraft for the granting and maintenanceinforceofanoperatinglicence.Thisexercisewasalsoidentifiedasanactionpointfor2018aspartoftheongoingreviewofoursystemsandprocesses.

The Commission participated in a workshop hosted bytheUKCivilAviationAuthorityinJune2018foraviationlicensingregulators.Akeyaimofthisannualworkshopistopromotealevelplayingfieldintheapplication of operating licence requirements within theEuropeanUnionandtohelpgivetheindustryconfidencethatsuchrequirementsarebeingfairlyandconsistentlyapplied.Itisalsoanopportunitytoshareexperiences,developbestpracticeandtoimprovemutualworkingrelationships.

TheworkshopwasattendedbytheEuropeanCommission and representatives from several other MemberStates.Themaintopicsdiscussedweremanagingairlineinsolvency,airportslots,dronelicensing,alternativedisputeresolutioninthecontextofconsumerrightsandtheEuropeanCommissionalsoprovidedanEUregulatoryupdate.

InNovember2016,asprovidedforintheActionPlanoftheAviationStrategy,theEuropeanCommissionalso published a Roadmap for the evaluation of Regulation(EC)No1008/2008oncommonrulesfortheoperationofairservicesintheCommunity.During2018,weparticipatedinasurveyofnationalauthoritiesconductedbyconsultants,Ricardo,appointedbytheEuropeanCommissionaspartofthisevaluation.

During2018,theEuropeanCommissionpublishedfurther notices setting out how it believes the departureoftheUnitedKingdomfrommembershipoftheEuropeanUnionmayimpactontheaviationsector.Thesenoticeswerecirculatedtolicenceholders for information and consideration as


appropriate.Asoneoftheconditionsforqualifyingfor and maintaining an operating licence is that an air carrierismajorityownedandeffectivelycontrolledbyEUMemberStatesand/ornationalsofEUMemberStates,theCommissioncontinuedtointeractwithall air carriers in relation to their ongoing compliance inthisarea.Inparticular,theCommissionengagedwith a small number of Irish air carriers who would beaffectedbythepotentialre-categorisationofUKnationals as third country nationals in the context of a “NoDealBrexit”inrelationtotheirplansforcontinuedcompliance with the ownership and control requirements.

3.3 Groundhandling ApprovalsAttheendof2018,therewere9approvedself-handlers(i.e.whereanairlinechoosestoprovidegroundhandlingservicesforitself)and36approvedsuppliersofgroundhandlingservicesorthird-partyhandlers(i.e.acompanyengagedintheprovisionofgroundhandlingservices,beitanairlineoradedicatedgroundhandlingcompany).Oftheapprovedself-handlers,3arealsoapprovedtoprovidegroundhandlingservicestothirdparties.

A full list of approval holders is kept up to date on the Commission’swebsite.Chart4presentsananalysisofthenumbersofapprovedself-handlersandsuppliersofgroundhandlingservicesbyairport.

Chart 4: Approved handlers by type and Airport 2018

Self Handlers Third Party Handlers

Groundhandling Approvals 2018

9 9 9

2820

10

Dublin Shannon Cork

During2018,theCommissionreceivedfiveapplications for approval as a supplier of groundhandlingservices.Onenewthird-partyhandling approval was issued to Menzies Aviation (Ireland)LimitedfortheprovisionofgroundhandlingservicesatDublinAirport.Theremainingfourapplications were in progress at the year end at variousstagesintheapplicationprocess.Inaddition,duringtheyearanapplicationreceivedin2017forathird-partyhandlingapprovalwasclosedduetolack of engagement on the part of the applicant

company in line with our guidance on applying for a groundhandlingapproval.

Thethird-partyhandlingapprovalheldbyFlightcareMultiservices Ireland Limited was voluntarily surrendered during the year as the activities of the company were integrated into its sister company,SwissportIrelandLimited.Inaddition,thegroundhandlingapprovalheldbythecompany,MetisTechnicalLimited,waswithdrawnforfailuretomeetthe necessary requirements of the legislation in this area and the terms and conditions of the Grant of ApprovalissuedbytheCommission.

Duringtheyear,weexaminedandapprovedapplications from OCS One Complete Solution LimitedandStobartAirUCtoaddadditionalactivitiestotheirexistingApprovals.Wealsoreceivedathirdapplicationfromanexistingthird-partyapprovalholderbasedatDublinAirporttoengageinadditionalgroundhandlingactivities.Thisapplicationremainedunderconsiderationattheendof2018withfurtherdocumentationawaitedfromtheapplicantcompany.

Approvalsareissuedforaperiodoffiveyears.Werenewedfiveapprovalsin2018followingsuccessfulcompletionoftherenewalprocess.

One of our strategic goals is to focus on delivering safeandfinanciallyrobustGroundhandlersinIreland.Inordertoachievethis,ourobjectiveistofocusonoperatinganefficientlicensingsystem.During2018,wecontinuedtoworkwithairportswithaviewto developing a framework for the monitoring and enforcement of compliance by groundhandlers operatingatDublin,ShannonandCorkairports.It is proposed that further engagement with groundhandlerswilltakeplaceinearly2019withaviewtoadoptingaformalprocess.

Also,inlinewithourstrategicobjectives,wecarried out compliance visits to eleven approved groundhandlingcompaniesoperatingatDublinandShannonAirports.Wealsovisitedtherelevantairportauthorities to discuss any issues arising in the context ofourgroundhandlingrole.

We designed a compliance calendar for issuing toApprovalholdersinearly2019whichhighlightskeycompliancedatesarisingduringtheyear.The compliance calendar will be accompanied by a summary of all monitoring and compliance requirements which arise and a list of events which requirepriorapprovalfromornotificationtotheCommission.

InSeptember2018,thenewRegulationforEASAandtheEuropeanaviationsystem(Regulation(EU)2018/1139)enteredintoforce.ThenewRegulationincludes requirements for the safe provision of groundhandlingservices.EASAhascommencedwork on a Road Map which will eventually result


in implementing rules which groundhandlers will berequiredtocomplywith.TheIrishAviationAuthority(IAA)isexpectedtobedesignatedasthecompetentauthorityforthenewBasicRegulation.The Commission will continue to monitor progress on this and will work with the IAA as it will be necessary to consider how the implementing rules once published will sit with the existing groundhandling regime in place in Ireland and the Approvals process administeredbytheCommission.

3.4 Looking ForwardWe will continue to administer the licensing and approvalsregimeforaircarriersandgroundhandlers.We will also closely monitor the implications for Irish air carriers and groundhandlers as a result of the intentionoftheUKtowithdrawfromtheEUpursuanttoArticle50oftheTreatyonEuropeanUnion.


04Travel Trade Licensing


4.TravelTradeLicensingJosephine O’Reilly is a member of the Association of Chartered Certified Accountants in Ireland. She joined the Commission in April 2001 and is Director of Finance and Travel Trade. She also provides support to the airline licensing and groundhandling areas in respect of the financial performance of their licensed entities.

4.1 What we doTheCommissionhasfivemainrolesundertheheading of travel trade licensing:

1) Licensing travel agents and tour operators buying andsellingoverseastravel.

2) Administering a bonding scheme for travel agents andtouroperators.

3) AdministeringtheTravellers’ProtectionFund(whichwasbuiltupwithalevyonpassengersoftouroperatorsbetween1983and1987).

4) Processing claims for refunds and repatriation in the event of a licensed travel agent or tour operatorgoingoutofbusiness.

5) Investigating instances of alleged illegal trading and,whennecessary,prosecutingillegaltraders.

Attheendof2018,231travelfirmswerelicensedby the Commission to operate as a travel agent or touroperatorinIreland.Duringtheyear40firmsexitedourlicensingregime.Weissuedlicencesto10newapplicants.Wereceivedover150newlicenceenquiries.

Table 3: Number of Licences 2018

Travel Agents Tour Operators

Licenceholders,1Jan2018

222 39

NewLicences 8 2

Licences not renewed

34 7

Licenceholders,31Dec2018

196 35

Ofthe40Licenceholderswhoexitedtheregime,30ofthesewerefromotherEUMemberStates(mainlyUK)whodidnotrenewtheirlicencebecausefrom1July2018,ontheintroductionofDirective(EU)

2015/2302onPackageTravelandLinkedTravelArrangements,theseentitiesarenowregulatedinthecountriesinwhichtheyareestablished.

Chart 5: Licensed Travel Agents & Tour Operators, 2018.

2014 2015 2016 2017 2018

300

200

100

0

226 228 225 222

46 44 44 39

Travel Agents Tour Operators

196

35

4.2 Directive (EU) 2015/2302 on Package Holidays and Linked Travel ArrangementsMemberStateswererequiredtoimplementDirective(EU)2015/2302onpackagetravelandlinkedtravelarrangementsby1July2018.TheDepartmentofTransport,TourismandSportisworkingonaStatutoryInstrumenttogiveeffecttotheDirective.Intheinterim,wehaveputinplacetransitionalarrangements.

The Commission issues most licences to tour operatorsandtravelagentsinMayandNovemberofeachyear.InMay,weissuedlicencesto113entitiesfor12months.Thismeantthattheyremainedlicensed for sales out of Ireland until the expiry of thelicence.EntitiesestablishedelsewhereintheEUwere given the option of terminating their licences early.Noentitieschosetodoso.From1July,anyentities established in Ireland who had sales out of any otherEUMemberStateotherthanIrelandprovidedevidence of security to the Commission for these sales.ForanyentitiesestablishedelsewhereintheEU,

Josephine O’Reilly Director of Finance and Travel Trade


theCommissionrequiredthemtoprovidesufficientevidenceofsecurityforallpackagesofferedforsale/orsoldinIreland.ForentitiesestablishedoutsidetheEU,wedecidedtotreatthemaswehaveinthepastandtolicensethemforsalesoutofIreland.

InNovember,weissuedlicencesto112entitiesfor12months.WedidnotlicenseanyentitiesestablishedelsewhereintheEU.AnyentitiesestablishedinIrelandwhohadsalescommencingoutofanyotherEUMember State other than Ireland provided evidence ofsecuritytotheCommissionforthesesales.ForanyentitiesestablishedelsewhereintheEU,theCommissionrequiredthemtoprovidesufficientevidenceofsecurityforallpackagesofferedforsale/orsoldinIreland.ForentitiesestablishedoutsidetheEU,wedecidedtotreatthemaswehaveinthepastandtolicensethemforsalesoutofIreland.

We attended a Workshop on the Package Travel DirectiveattheEuropeanCommissionduringtheyear.CentralcontactpointsforeachMemberStatewereagreedandanon-linesharedcommunicationplatform was launched to enable prompt communicationbetweeneachcontactpoint.Theobligations of each central contact point were also agreeduponanddetaileddiscussionsontheDirectivewereheld.

4.3 Key Performance IndicatorsIn2017,weconsultedonthekeyperformanceindicators that should be applied to our travel trade team.WepublishedadecisionpaperinJanuary2018andtheindicatorshavebeenineffectfrom2018.

Table 4: 2018 Performance Indicators

KPI Result

Respond to applicants within one week of initial contact

94%

DecisioninPrincipleletterissuedwithin one month of completed application submission date

95%

Licence issued within two weeks of Bond/alldocumentsreceived

94%

Annual accounts examined within six weeks of receipt

73%

Percentageoflicensees’premisesvisitedperannum(IncludingmeetingsatCAR)

20%

Our performance in examining the annual accounts withinsixweeksofreceiptisaffectedduringourrounds when we focus on responding to applicants andissuingthelicences;weaimtoimprovethisinthecomingyear.Wehaveincreasedourengagementwiththeindustrythisyear(wereachedourKPIof20%).

Wehad44meetingsin2018comparedto24in2017andaimtoexceedthisnumberin2019.

4.4 Licensing and Financial Monitoring Eachentityundergoesanassessmentofitsfinancialfitnessaspartofthelicensingprocessandwherenecessaryissubjecttoongoingmonitoring.Bondinglevelsarealsothesubjectofongoingmonitoring.Ataminimum,wereceiveannualfinancialstatementsfromentitiesbutinmanycases,wereceivemanagementaccountsonaquarterly,monthlyoradhocbasis.In2018,wecontinuedtoreviewourlicensingandmonitoring frameworks to simply the process where possible.

4.5 Monitoring ComplianceIn2018,weinvestigatedeightcomplaintsaboutpossibleunlicensedtradingduringtheyear.Wealsocarried out a number of visits to companies suspected ofunlicensedtrading.

4.6 Consumer ProtectionTable 5: Licensable Turnover and Bonding21

Licensed Entities

2018 (€m) 2017 (€m)

Bond PLTO21 Bond PLTO

Travel Agent (4%)

43 1083 47 1164

Tour Operator (10%)

19 180 19 195

Totals 62 1263 66 1359

Underexistinglegislation,travelagentsandtouroperators are required to put in place arrangements to provide protection to the travelling public in the event ofacollapse.

Irishestablishedentitiesmustprovideabond.Thebondiscalculatedasapercentageofthefirm’sprojectedlicensableturnover.Bondsarecurrentlysetat4%fortravelagentsand10%fortouroperators.

Asatransitionalarrangement,wehavebeenaccepting full indemnity insurance cover from Irish establishedentitiesforallsalescommencingintheUKnotcoveredundertheabovebond.

Ifthebonddoesnotcoverthecostofallclaims,theshortfalliscoveredbytheTravellers’ProtectionFund.ThisonlyrelatestoentitieslicensedbytheCommission.Asnotedinlastyear’sreport,thefundhasbeendepletedoverthepastnumberofyears.

21 Projected Licensable Turnover


In2017,theCommissionundertookworktoreviewboth the bonding arrangements in place and the operationoftheTravellers’ProtectionFundtoensuretheycontinuetoefficientlymeettheobjectivesofthe scheme and provide the travelling public with an appropriatelevelofprotection.Weconductedstage1ofthisreviewin2017.

Atthattime,wetooktheviewthattheexistinglevelofconsumer protection may not be adequate and that changestotheschemewererequired.Weexpecttocompletethisworkin2019followingthepublicationofaStatutoryInstrumenttotransposetheDirectiveintoIrishlegislation.

ForLinkedTravelOrganisers,wehaveacceptedfullindemnity insurance cover from Irish established airlinesinvolvedinthisactivity.

4.7 Company CollapsesDuring2018therewerethreecollapses:

● ●PremierIrishGolfToursLtdon11July2018.Wereceived35claims.

● ●SindacoLtdtradingasFanfare,IrishFilmTours&BuzzTravelon20July2018.TheCommissionreceived179claims.Werepatriated141passengersfromBulgariabyorganisingtwocharterflightshomewithCelloAviationLimited.Separately,wearrangedpreferentialfareswithAerLingusfortherepatriationofafurther59passengers.

● ●Heffernan’sShipping&TouristAgencyon3October2018.Wereceived131Claimsandthebondwasinsufficient.

4.8 ConferencesWe attended the Worldchoice Annual Conference inKilkennyon3November2018andprovidedanupdate on our licensing rounds and the transposition oftheDirective.

4.9 EGFATTTheCommissionisamemberoftheEuropeanGuaranteeFundsAssociationforTravelandTourism.ThisisaEuropewideorganisationthatwassetupin2011withthecommongoaltoprotectthetravellingpublicagainstthefinancialinsolvencyoftouroperatorsand travel agents and to share knowledge and best practice.WeattendedonemeetinginNorwayin2018andplantoholdameetinginDublinin2019.

4.10 Looking Forward2019lookstobeachallengingandbusyyearfortheteam.Asoutlinedabove,wehaveseveralworkstreams ongoing in relation to the Package Travel Directiveandtheconsumerprotectionscheme.Wewill have to monitor the industry in relation to the impactofBrexit.

The Commission will oversee two licensing rounds andcontinuetomonitorentitiesonanon-goingbasis.Wewillcontinuetoworkwithstakeholderstoinvestigate instances of alleged illegal trading and we willagainbelookingtonewinitiatives.


05Air PassengerRights


5.AirPassengerRightsIn2018theCommissionreceivedwrittencontactsfromthepublicinrelationto4,420differentcomplaintsandqueries22,up66%from2017.Wewerealsocontacted2,713timesbytelephoneandthiswasa47%increaseonlastyear.

Many of these were requests for information on passengerrightsgenerally,thecomplaintprocedureandmattersoutsideofourremit;e.g.baggagecomplaints,safetyissuesandpricingqueries.Wherepossible we referred people to the appropriate authoritycompetenttodealwiththeircomplaint.

Intotal,over67%ofallqueriesrelatedtomattersoutsidetheremitoftheCommission.

Wereceivedatotalof2,389onlinecomplaints.Ofthese,70relatedtotherightsofdisabledpersonsand persons with reduced mobility when travelling byair.Some19ofthesecomplaintswerewithinourremittoaddress.

Theremaining2,319complaintsrelatedtopossibleinfringementsofRegulation261/2004.Thisisa56%increasecomparedto2017figures.

5.1 Cancellations, Delays, Denied Boarding and DowngradesOfthe2,319complaints,101relatedtoflightsdeparting from airports in other Member States or flightsarrivingintosuchairportsfromthird(i.e.non-EU)countriesoperatedbyCommunity-licensedcarriers.Weworkedwithpassengerstoensurethatall information necessary to conduct an investigation was provided before forwarding these complaints to the appropriate national enforcement bodies or enablingthepassengerstodosodirectly.

Theremaining2,218complaintsarethereforesubjecttoafullinvestigationbytheCommission.In2017thisnumberwas981.Thisrepresentsanincreaseinvalidcomplaintsthatrequiredfullinvestigationof126%relativeto2017.Inotherwords,thenumberofvalidcomplaints submitted for investigation more than doubledin2018.

22 Multiple communications were received in respect of many of these complaints.

Ofthesecomplaints,1,657havebeenconcludedand561arestillunderinvestigationorawaitingdecision.Abreakdownoftheoutcomesinthe1,657concludedcasesispresentedinTable623.

In726cases,thecomplaintwasfoundtobeunsustainableundertheRegulation,waswithdrawnby the passenger or related to an infringement for which there was no redress available to the passenger.

In358cases,extraordinarycircumstanceswerefoundtoapply,anditwasconsideredthatreasonablemeasuresweretakenbytheairlinetoavoidtheflightdisruption such that no compensation was deemed payabletoaffectedpassengers.

In488cases,compensationwaspaidtothepassenger,andinafurther113casesthecustomerreceived a refund of the cost of their ticket or expenses.

TheCommissionhasobtained€458,817forpassengersaffectedbyflightdisruptionsin2018:€390,650incompensationand€68,167inrefundsandreimbursements.

Table 6: Air Passenger Complaints by Type

Type of Complaint

Number of Complaints

%

Cancellation 728 44%

Long delay 861 52%

Deniedboarding 64 4%

Downgrading 4 0%

Upgrading 0 0%

Total 1657 100%

23 A complaint might have more than one outcome i.e. the passenger may have received a refund of his/her expenses but the air carrier might also have successfully demonstrated the existence of extraordinary circumstances.


Chart 6: Outcomes of Air Passenger Complaints in 2018 as of 18/01/2019

Compensation paid by airline

Refund of ticket or expenses incurred

Extraordinary circumstances proven and reasonable measures illustrated

Complaint withdrawn, unsustainable or no redress available

Ongoing Complaints and those awaiting action

25% 22%

5%

32%16%

5.2 Complaints by Air CarrierAsmentionedpreviously,2,319complaintsfrompassengers related to possible infringements ofRegulation261/2004weresubmittedtotheCommissionduring2018.Thisincluded101thatwerereferredtootherNationalEnforcementBodiesforfurtherinvestigation.Chart7belowshowsthetotalcomplaintsforAerLingus,Ryanairandan‘Other’category.The‘Other’categoryrepresentsthesumof all complaints in respect of other airlines received bytheCommission.Complaintswererecordedinrespectof52otheraircarriersduring2018.

Chart 7: 2018 complaints for Aer Lingus, Ryanair and other air carriers

Canc

ella

tion

Long

Del

ayDe

nied

Boa

rdin

gDo

wng

radi

ng

Upgr

adin

g

Aer Lingus Ryanair Other

0%

25%

50%

75%

100%

49%

34%

17%

36%

23%

0%

41%

28%

16%

56%

83%

17%

5.3 Persons with Reduced Mobility During2018wereceived70submissionsabouttherightsofpersonswithreducedmobility.Ofthese,51(73%)concernedissueswhichdidnotconstitutepotentialinfringementsofRegulation1107.Theremaining19,morethandoublethenumberin2017,werevalidcomplaintswhichrequiredinvestigation.The issues raised were varied and included:

● The assistance received at an airport of departure/arrivalspecificallytheprovisionofassistanceeitherto/fromadesignatedpointwithintheairportboundaries.

● The assistance received in disembarking an aircraft.

● The transport of up to two pieces of mobility equipmentperpersonwithreducedmobility,in addition to medical equipment and including electricwheelchairsbyaircarriers.

ElevenofthecomplaintshavebeenconcludedwithnoinfringementsofRegulation1107/2006notedinrelationtosame.Afurthereightinvestigationsremains ongoing and it is not yet clear whether an infringementoccurred.

5.4 Other WorkWe also completed a number of airport inspections during2018.Thepurposeoftheseinspectionswas:

● To monitor the provision of assistance to persons with reduced mobility by airport management bodiesinaccordancewithRegulation1107/2006

● ●ToensurethataircarriersdisplaythetextsetoutinRegulation261/2004attheircheck-indesksandkiosksand,also,providecorrectinformationtopassengersaffectedbylongflightdelays,cancellationsandinstancesofdeniedboarding.

Tender processes for provision of passenger with reducedmobilityassistanceatDublinAirportandShannonAirporttookplaceduringtheyear.Weattended these meetings in an observer role as part ofourresponsibilitiesunderRegulation1107/2006.

InAutumn2018wesignedoffonaComplaintHandlingagreementwithAerLingus.

In2018wewentlivewithsomechangestoouronline complaints system which improved complaint validation.Whilecomplaintvolumescontinuetoincrease year on year this enables us to better ensure thatallcomplaintssubmittedtousarerelevant.

In2017,theCommissionreceived502complaintsviaitsonlinesysteminrelationtoflightsdepartingfromoutsideIrelandandthusoutsideourjurisdiction.


ThesewereforwardedtootherNationalEnforcementBodiesforfurtherinvestigation.Followingchangesmade to passenger information inputs for the online complaintsystem,thenumberreducedto101.However,asnotedabove,weforwarded900queriestootherEUagenciesin2018;799ofthesequeriesweree-mailsreceivedbytheCommissionfrompassengerscomplainingaboutflightsthatdepartedfromairportsoutsideIreland.

Over the last couple of years there have been step changes in the volume of complaints and queries receivedbythisoffice.Thishasledtoadelayintheprocessingofcomplaints.Thisissuebegantomaterialisein2017.Webegan2018withsome524casesnotyetexamined.ByAugust2018thisnumberhadincreasedto1,303.

InOctoberweputinplaceanadditionalteam,onashort-termbasis,tostartclearingthisbacklogandweexpecttheworktobefinishedinQ12019.Atpresent1,071ofthesecaseshaveclosed.Inaddition,inearly2019,weplantostrengthenourAirPassengerRightsteamtomanagetheincreasedvolumeofclaims.

At national level we actively participated in the bi-annualFacilitationCommitteemeetingsandwealso continued our participation in the Accessibility Consultative Committee which aims to improve accessibility across the entire transport sector in Ireland.

5.5 Looking ForwardAs will be seen from the preceding sections we have seen a dramatic increase in the number of complaintswereceive.In2019,wewillcontinuetoregularly monitor the level of complaints processed toensurethatabacklogdoesnotmaterialise.

Inaddition,wewillmonitortheimpactthatBrexitmay have on the volume of complaints and queries receivedbytheCommission.IftheUKleavestheEU,allcomplaintsrelatingtoflightsenteringIrelandfromtheUKonEUregisteredcarriersmayneedtobeinvestigatedbythisoffice.


06Corporate Services


6.CorporateServicesBrian Higgins is a Fellow of the Chartered Institute for Personnel and Development and joined the Commission in July 2016 as Director of Corporate Services following an HR and Operational career in manufacturing, finance and aviation. He is responsible for HR, general administration, corporate governance, health and safety, facilities, IT management and public relations.

6.1 Human ResourcesTheCommissionemployedanaverageof17full-timeequivalentstaffin2018(seeappendix).Staffmembersare paid at rates that compare directly with Public Service posts and all rates have been sanctioned by theDepartmentofPublicExpenditureandReform.Flexibility in our organisation structure and job roles has been and will continue to be the cornerstone of ourservicedelivery.Actionsinsupportofourstrategicobjective to achieve a regulatory framework that represents best international practice have seen us alignandimplementeducation,development,andtraining plans based on an analysis of the skill and competencyrequirementsoftheCommission.

WithourStrategicPlaninplace,wesubmittedaWorkForcePlantoDTTASforadditionalresourcesinordertoensureourabilitytodeliveronthisplan.Thefirststagewasapprovedandthesecondisintrain.Theseroles are essential to ensure delivery of our objectives forbothstakeholdersandthetravellingpublic.

6.2 Superannuation SchemesTheCommissionoperatestwopensionschemes.AdefinedbenefitschemewasestablishedundertheAviationRegulationAct2001.TheSinglePublicService Pension Scheme applies to all new employees from1January2013(unlessotherwisepermittedtojointheCommission’sdefinedbenefitscheme).Bothpension schemes are administered in accordance with legislativerequirements.

6.3 Health and SafetyIn pursuance of a proactive approach to health and safety,wecontinuetoencourageallstafftobecomeinvolved in promoting safe practices at work and have completed training programmes in all aspects ofmanualhandling,firesafetyandfirstaid(includingAEDuse)andwillcontinuetodosointhefuture.Weoperate a health screening programme and also

providefluvaccinationsonanannualbasis.HealthandSafety is overseen from within the Corporate Services function with responsibilities dedicated at both managerialandofficerlevel,toensurecomplianceinaccordance with our safety statement and legislative requirements.

6.4 Outsourcing and ProcurementAsinpreviousyears,wecontinuedtooutsourcenon-coreadministrativefunctionsrelatingtointernalaudit,disasterrecovery,mediarelations,ITandpayroll.Wewillcontinuetodosoaslongasitremainsbothcost-effectiveandefficient.Inadditiontothis,wepursuebest value practices in all aspects of our procurement utilisingOGPservices,e-tenderingandcompetitivepricingasappropriate.

Duringtheyear,theCommissionimplementedchanges to its phone system and initiated a phased upgrading of its IT capability resulting in improved access speeds and software upgrades to deliver effectiveuseofresourcesandefficientservicedeliveryinsupportofourStrategicobjectives.

6.5 Official Languages Act, 2003The Commission for Aviation Regulation is listed as a public body in the First Schedule of the OfficialLanguagesAct,2003.InAugust2016,theCommission’s3-yearLanguageSchemewasapprovedbytheMinisterforArts,Heritage,Regional,RuralandGaeltachtAffairs.Thisplanwillbecompleteon31August2019andtheCommissionwillputtogether a new plan to further enhance our capability toconductourservicesthroughIrish.

6.6 FacilitiesWe continued to implement our policy to reduce energyconsumptionbypoweringofflightsandequipmentwhennotinuse.OurenergyconsumptionundertheSEAIreportisontrackforour2020target

Brian Higgins Director of Corporate Services


with a green status and savings since baseline of26.7%.Inthisvein,theCommissioncontinuestoprocure3rdpartysupplierswhodemonstratecapabilitiesinrecycling,environmentally-friendlyproductsandsavingenergywherepossible.Wewillcontinue to innovate in areas of energy saving and wastemanagementin2019.

6.7 General Data ProtectionIn2018weappointedandregisteredourDataProtectionOfficerwiththeDataProtectionCommissioner’sofficeinlinewithourresponsibilitiesundertheGeneralDataProtectionRegulations2018.OurDataProtectionOfficerfacilitatesandmonitorscompliancewiththeGDPR,ensuringthattherightsoftheCommission’sdatasubjectsareupheld.

6.8 Corporate Governance

The Commission remains committed to maintaining thehigheststandardsofcorporategovernance.It complies with the Code of Practice for the GovernanceofStateBodies2016,whereapplicableforanorganisationofitssize.TheCommissioner,asaccountableperson,isresponsibletotheMinisterforTransport,TourismandSportforgoodcorporategovernance.

6.9 TransparencyThe Commission carries out its functions as transparentlyaspossible.Alldocumentsrelatingtoconsultationsarepublishedonourwebsite(alistfor2018isincludedintheappendixtothisreport).

Table 7: Summary of Corporate Governance

Commission Code of Contact ThereisacodeofconductforCommissionemployees.

Investment Appraisal TheCommissiondidnotincuranycapitalexpenditurein2018comingwithinthescopeoftheactivitiesenvisagedintheDepartment’s2005GuidelinesfortheAppraisalandManagementofCapitalExpenditureProposalsinthePublicSector.

Remuneration of Senior Management and Directors’ Fees

TheHRsectionofthisSectionsetouttheinformationinthisarea.Thepaymentofdirectorfeesdoesnotapply.

Reporting Arrangements TheCommissionpreparesreportsfortheMinisterforTransport,TourismandSportasrequired.TheCommissionhasafullydevelopedaccountingsystem,provideddetailedmonthlymanagementandfinancialreportstoseniormanagement.WeadoptInternationalreportingStandardsforouraccounting.Wecalculateouraccountsonanaccrualaccountingsystem,exceptwherespecifiedinthenotestothefinancialstatements.ThesestatementsareauditedbytheComptrollerandAuditorGeneral.TheCommission has taken measure to comply with the obligation to keep properbooksofaccounts.Thesearekeptatitssoleoffice.

Strategic and Corporate Planning TheCommission’sfunctionsandresponsibilitiesaresetoutintheAviationAct2001,theStateAirportsAct2004,theAviationAct2006andthe

StateAirports(ShannonGroup)Act2014togetherwithvariousStatutoryInstruments.TheCommissionreportsannuallytotheMinisterforTransport,TourismandSportonthemannerinwhichitsfunctionshavebeendischargedinthepreviousyear.Sinceearly2017,theCommission

hasbeenimplementingitsStrategicPlan2017-2019.

Travel Policy TheCommissioncomplieswithGovernmentaltravelpolicyrequirements.

Disclosure of Interests TheCommission,itsstaffandallconsultantsandadvisersarerequiredtocomply with the relevant disclosure requirements arising out of Section 18oftheEthicsinPublicOfficeAct1995andSections17-18oftheAviationRegulationAct,2001.

Risk Management The Commission maintains a risk register which is regularly reviewed by seniormanagementandworkswiththeauditcommitteetomanagerisks.


SinceMarch2012,theCommissionhaspublishedquarterly notes on our website detailing its purchase ordersforamountsinexcessof€20,000.TheCommission received two Freedom of Information requests,oneDataProtectionrequestandansweredtwenty-nineparliamentaryquestionsduringtheyear,togetherwithappearingbeforetheOireachtasCommitteeonTransport,TourismandSportwithreference to Ryanair cancellations and the impact on consumers.

6.10 Regulatory Reform During2018,theCommissionworkedwithDTTASand the IAA to start the regulatory reform process which will result in the merger of the Commission and theSafetyRegulatoryDivisionoftheIAA.Weareonthe project steering group and each of the working groups looking at:

(a) Organisation structure and governance

(b) Legislation

(c) Corporate branding and communications

(d) Strategic HR and change management

(e) Finance and funding

(f) IT and facilities

Work has advanced furthest in the areas of organisationdesignandlegislation.Weanticipateworkinallareastoprogressin2019.Forexample,weplantosignaMemorandumofUnderstandingwiththeIAAearlyin2019tocommenceworkonthefundingofasingleregulatoryauthority.Thesteeringgroup’sobjectiveistohaveasingleregulatoryauthorityinoperationby1January2020.

6.11 Looking Forward Wewillcontinuetoensuretheorganisation’ssystemsand processes are aligned with our strategic goals in pursuitofgreaterefficiencyandimprovedcustomerservice.InadditiontothiswewillcontinuetheprogrammeofworkalreadycommencedwithDTTASand our IAA colleagues to form a singular aviation regulatoryauthorityfor2020.Wewillcontinuetoinnovateandensurethecorrectjobroles,knowledgeandexpertisearerecruited,developedandretainedin order to support a regulatory framework that represents best international practice in support of ourstrategicandnationalobjectives.

07Financial Information



7.FinancialInformation2018wasanotherbusyyearfortheCommission.Our2018budgetrosemainlyduetotheneedforsupportforthe2019AirportChargesDetermination,determiningthecoordinationparametersdecisions,reviewingthePackageTravelDirectiveandtheongoing review of current insolvency arrangements inthetraveltradeindustry.Thisisreflectedina19%increaseinLevyIncome.Wedealtwiththreetraveltradecollapsesduringtheyear.ThismeansotherIncomeincreasedtorecoverourcostsforthiswork.

Overallexpenditureroseby2%intheyear.Fulltimeequivalentstaffnumbersremainat17fortheyear.Legal costs increased due in part to issues related to Brexit.Ourtravelandsubsistencehaveincreasedaswe spend more time talking to an increasing range ofstakeholders.Ourauditfeesincreasedbecausewe decided to bring forward certain audits from 2019to2018.Thismeanstherewillbeareductionincostsin2019.Wealsoincurredadditionalspendingunder this heading in connection with a paper we issued to industry regarding a new accounting standard(IFRS16)anditsimplicationsforourlicencedentities.WemadesignificantsavingsunderourSlotCoordination heading as we tendered for this service duringtheyearandthenewcontractpriceislower.

The Statement of Financial Position shows that the level of travel trade cash bonds has increased by €344kbyyearend.Therewere125cashbondsinplaceattheendof2018comparedto123cashbondsattheendof2017.Thenumberofbondshasremainedfairlylevelforthepastfewyears.Thedeficitontheretirementschemeislargelyunchangedsincelastyear;thenetliabilityhasmovedfrom€878,348at31December2017to€899,111at31December2018.Theprincipalfactorsbehindthemovementintheplan’sdeficitwereactuarialchangesin assumptions and investment underperformance duringtheyear.Theactuarialassessmentoftheliability in respect of the SPSPS scheme stood at €107,356at31December2018.

7.1 Statement of Internal ControlThe Commissioner for Aviation Regulation has overallresponsibilityforensuringthataneffectivesystem of internal control is maintained and operated intheCommissionforAviationRegulation.Thisresponsibility takes account of the requirements of the Code of Practice for the Governance of State Bodies(2016).Thesystemofinternalcontrolisdesigned to manage risk to a tolerable level rather thantoeliminateit.

In order to discharge this responsibility in a manner that ensures compliance with legislation and regulations,theCommissionerhasestablishedan organisation structure with clear operating andreportingprocedures,linesofresponsibility,authorisationlimits,segregationofdutiesanddelegatedauthority.

The Commission has an Audit and Risk Committee which operates under a written charter approved by the Commissioner and which consists of three externalmembers,withfinancialandauditexpertise,oneofwhomistheChair.

The Commission also has an internal audit function thatisoutsourced.Theworkofinternalauditisinformed by analysis of the risks to which the Commissionisexposed,andannualinternalauditplans are based on this analysis and agreed with the Committee.AllinternalauditreportsarepresentedtotheCommittee.

The Commission has developed a risk management policywhichsetsitsriskappetite,outlinestheriskmanagement processes in place and details the roles andresponsibilitiesofstaffinrelationtorisk.

TheCommissionerhasconfirmed,inthedraftFinancialStatementsfortheyearto31December2018,thattheCommissionconductedareviewoftheeffectivenessofthesystemofinternalcontrolandriskmanagement.

7.2 Internal AuditBDOIrelandareourinternalauditorsandtheircontractrunsto15August2019.Theinternalauditoroperates under the guidance of the external Audit andRiskCommittee.In2018,theinternalauditorsperformedfiveaudits:

Josephine O’Reilly Director of Finance and Travel Trade


● ●Aviationlicensingreview

● ●GDPRimplementationreview

● ●Procurementandcontractmanagementreview

● ●Riskmanagementreview

● ●Statementofinternalcontrolandriskmanagement review

7.3 Audit and Risk CommitteeThe Audit and Risk Committee met four times during 2018. AteachmeetingtheCommitteewasupdatedbytheCommissioneronouractivities,ongoingworkandkeyissues.Keymanagementstaffattendedmeetingsasrequiredandwhereappropriate. Theindependent internal auditors also attended meetings on a regular basis to update the Committee on the auditplanandrelatedauditreports.TheCommittee’sannualreportfor2018didnotraiseanyissueswiththeCommission’ssystemofinternalcontrol.

7.4 Prompt Payment of AccountsThe Commission acknowledges its responsibility for ensuringcompliance,inallmaterialrespects,withtheprovisionsoftheEuropeanCommunities(LatePaymentsinCommercialTransactions)Regulations,2002(“theRegulations”).Procedureshavebeenputin place to identify the dates upon which invoices fall due for payment and to ensure that payments aremadebysuchdates.Theseproceduresprovidereasonableassuranceagainstmaterialnon-compliancewiththeRegulations.Thepaymentpolicy is to comply with the requirements of the Regulations.

7.5 ProcurementTheCommission’sprocurementprocedurescomplywithnationaland,whereapplicable,EUguidelinesandDirectives.Thevalueofthemajorityofthecontracts is such that national guidelines tend to apply.TheCommissionhasaprocurementplan,setting out the areas in which it expects to tender for services.

7.6 Disposal of Assets and access to assets by third partiesThe Commission has no assets of the scale and valueenvisagedundertheguidelines(€150,000).Nosignificantassetdisposalstookplaceduring2018.

7.7 Investment AppraisalTheCommissiondidnotincuranysignificantcapitalexpenditurein2018comingwithinthescopeoftheactivitiesenvisagedintheDepartment’s2005

Guidelines for the Appraisal and Management of CapitalExpenditureProposalsinthePublicSector.

7.8 Tax ComplianceTheCommissionisliabletopayPAYE,VATandPSWT.TheCommissionhassubmittedallrelevanttaxreturnsfor2018andisfullytaxcompliant.

7.9 LevyUnderSection23oftheAviationRegulationAct2001,theCommissionmaymakeregulationsthatimposealevytomeetproperly-incurredexpensesindischargingitsfunctions.ThelevyispayablebysuchclassesofundertakingsasmaybespecifiedbytheCommission.

On17December2018,theCommissionmadeS.I.556of2018imposingtheLevyfor2019.TheCommissionexpectstoreceiverevenuesof€4.2mfromthelevyin2019.

Levyincomefluctuatesinlinewithexpectedexpenditureneedsandcashflowrequirements.Licence Fee income has remained fairly static over theyear.OtherIncomeiscomprisedofInterestincome and Income from the Travellers Protection Fund.Theformermovesinlinewithdepositsandinterestrateseachyear.Thelatterrelatestoinstanceswhere the Commission incurs expenditure in the administrationoftheTravellers’ProtectionFundandBondAccountsandrecoupsthesecostsfromthefundorbondaccounts.In2018,theCommissiondealtwiththecollapseofthreeentities;PremierIrishGolfToursLtd,SindacoLtdtradingasFanfareandHeffernan’sShippingandTouristAgency.Wereclaimed the costs of dealing with those claims and administering the fund from the bond and fund respectively.

Levy 2018 2017 % Change

Levy 3,190,624 2,680,100 19%

License Fees

137,578 200,848 -32%

Other Income

28,016 4,956 465%

Total 3,356,218 2,885,904 16%

7.10 Financial Statements On28February2018,thedraftfinancialstatementsfor2017weresubmittedtotheComptrollerandAuditorGeneralforaudit.On24September2018,oncompletionoftheaudit,theyweresubmittedtotheMinisterforTransport,TourismandSport.


They were laid before the Houses of the Oireachtas on25September2018andareavailableontheCommission’swebsite.

Draftfinancialstatementsfortheyearended31December2018havebeenpreparedandweresubmitted for audit to the Comptroller and Auditor Generalon28February2019.Anextractfromthesedraftstatementsisprovidedbelow.Thestatementofaccountingpoliciesandthenotestothefinancialstatements,whicharenotpresentedbelowbutwillbepartofthefinalpublishedaccounts,formanintegralpartofthefinancialstatements.

Draft Statement of Income & Expenditure for the year ended 31 December 2018

2018 € ‘000

2017 € ‘000

Income

Levy Income 3,191 2,680

Licence Fees 137 201

Other 28 5

SPSPSDeferredFunding 55 26

SPSPSEeContributionsremittedtoDPER

(16) (12)

Gross Income 3,395 2,900

Transfer(to)/fromCapitalAccount (15) 5

Net Income 3,380 2,905

Expenditure

StaffCosts 1,372 1,391

Pension Costs 310 237

Consultancy 614 547

Legal Fees 43 9

Rent 280 280

Schedules Facilitation 221 307

OperatingExpenses 574 592

3,414 3,363

Operating (Deficit) (34) (458)


Draft Statement of Comprehensive Income for the year ended 31 December 2018

2018 € ‘000

2017 € ‘000

Operating(Deficit) (34) (458)

NetInterestonpensionschemeliabilities

Experiencegains/(losses)arisingonretirementbenefitschemeliabilities

143 (45)

Actuarialgains(losses)onschemeassets (411) 106

Changes in assumptions underlying the present valueoftheretirementbenefitschemeliabilities

293 69

Transfers in for prior service - -

Actuarial gain/(loss) 25 130

ExperiencelossesSPSPS 1 -

Changes in assumptions SPSPS 10 1

Adjustment to deferred in funding 11 1

Total Recognised Gains/(Losses) relating to the Financial Year

2 (327)

Draft Statement of Financial Position as at 31 December 2018

2018 € ‘000

2017 € ‘000

Property Plant and Equipment

Property,PlantandEquipment 32 16

Current Assets

CashandCashEquivalents 20,825 20,781

LongTermDeposits 518 516

Receivables and Prepayments 302 177

21,645 21,474

Creditors (Amounts falling due within one year)

Payables and Accruals (206) (360)

CashBondAccounts (19,696) (19,334)

(19,902) (19,694)

Net Current Assets 1,743 1,780

Total Assets less Current Liabilities 1,775 1,796

NetRetirementBenefitLiability (899) (878)

Net Assets including Retirement Benefit Liability 876 918

Representing

Income&ExpenditureAccount 1,743 1,780

Capital Account 32 16

RetirementBenefitReserve (899) (878)

876 918


Draft Statement of Changes in Reserves and Capital Account as at 31 December 2018

Income & Expenditure

Account

Capital Account

Retirement Benefit

Reserve

Total

Balance as at 1 January 2017 2,165 21 (935) 1,251

OperatingDeficit (458) - - (458)

Movement during the year - (5) - (5)

Actuarial Gain - - 130 130

Transfer 73 - (73) -

Balance as at 31 December 2017 1,780 16 (878) 918

Balance as at 1 January 2018 1,780 16 (878) 918

OperatingDeficit (34) - - (34)

Movement during the year - 16 - 16

Actuarial Gain - - 24 24

PriorYearAdjustments (48) - - (48)

Transfer 84 - (84) -

Balance as at 31 December 2018 1,782 32 (938) 876

Draft Statement of Cashflows for year ended 31 December 2018

2018 € ‘000

2017 € ‘000

Net cash flows from operating activities

Surplus/(Deficit)onIncomeandExpenditure (34) (458)

DifferencebetweenRetirementBenefitCostandEmployerContribution (4) 73

Depreciation 7 5

BankInterestreceivednetofbankchargespaid (1) 1

Amortisation of capital asset 15 (5)

Decrease/(Increase)inReceivables (110) 82

Decrease/(Increase)inPrepayments (15) 85

Increase in Payables (82) 97

(Decrease)/IncreaseinAccruals (72) (133)

Net Cash (Outflow) From Operating Activities (296) (253)

Cash flows from Financing Activities

BankInterest - -

BankChargesPaid (1) (1)

Payments to Acquire Tangible Fixed Assets (22) -

Net Cash Flows from Financing Activities (23) (1)

Cash flows from Investing activities

IncreaseinCashBondAccounts&TPF 363 143

Net cash flows from Investing activities 363 143

Net Increase/(Decrease) in Cash and Cash Equivalents 44 (111)

Cashandcashequivalentsat1January 20,781 20,892

Cashandcashequivalentsat31December 20,825 20,781

Numbersroundedindependently,maynotsumtototal.

08Appendix



Deliveryofthe2018WorkPlanagainstKey Performance IndicatorsEfficient, High-Quality and Safety Conscious Airport ServicesObjective 1: Set Efficient Charges at Dublin Airport

Actions 2018 Key Performance Indicator 2018 Delivery

● SetapricecapforDublinAirport for the next regulatory period2020-2024andconsider other regulatory approaches consistent with legislation.

● ExamineDublinAirport’srequest for an interim review to allow a supplementary capex allowance for the current regulatoryperiod.

● Regulateandmonitorthecost-efficientprovisionofcapitalprojects.

● Monitor the compliance of airport charges and the quality ofservicemeasuresatDublinAirport.

● Publish an issues paper for the nextpricereview.

● Consultation and decision on supplementary capex allowance.

● Implement reporting arrangement.

● Publish quarterly results of qualityofservicemonitoring.

● In April we published an issues paperand,inJuly,submissions.Work on aspects of the price cap determination will continue uptoSeptember2019whenwepublishourfinaldecision.InNovemberDublinAirportsubmitted a capital plan for 2020-2024.

● InJune,inlinewithourmoreflexibleregulatorymodel,weissued a decision on additional capitalexpenditureforDublinAirport.

● InQ2,westartedtopublishquarterly report on the progressmadebyDublinAirport in delivery each approvedcapitalproject.

● We published quarterly results ofqualityofservicemonitoring.

Objective 2: Increase Stakeholder Involvement in Decision making


● Encourageincreasedlevelofconsultation on charges and infrastructure.

● Examinehowtobetterengagethe passenger in the regulatory process.

● IssueDublinAirportwithguidanceoneffectiveconsultation.

● Improve passenger representation in regulatory decisions.

● We issued guidelines used by DublinAirportandairlines.

● InSeptember,weestablisheda passenger advisory group giving passenger representatives direct input tothe2019Determinationprocess.


Objective 3: Promote Competition and Facilitate New Entry


● Declareslot-coordinationparametersatDublinAirport.

● Enforcesanctionsforairlinesoperatingwithoutaslot.

● Publishparameterdecisions.

● Publishcompliancereport.

● InMarch,wepublishedafull capacity assessment of DublinAirport.InMayandSeptember,wedeclaredco-ordinationparametersforWinter2018andSummer2019.InSeptember,wepublished a local guideline whichwaseffectivefrom1stOctober2018.

● We enforce sanctions and provide and update on our annualreport.

Safe and Financially Robust Airlines and GroundhandlersObjective 1: Operate an efficient Licensing System


● Keep our systems and internal processesunderreview.

● Review timelines for responses,processesforlicenceissue,reviews,renewals,withdrawalsorrevocations.

● Further coordinate processes with the IAA in our respective roles of issuing licences to airlines and review ourinformation-sharingarrangements

● Explorehowrelevantgroundhandling objectives couldbemostefficientlyachieved at Irish airports within the scope of the existing legislative and regulatory frameworks.

● Amend existing processes as necessary.

● Amend existing processes as necessary.

● Updateourlicensingprocessandourinformation-sharingarrangement.

● Review existing arrangements with the airports and publish updatedregulatoryapproach.

● Ongoing.Weupdatedourcompliance process and issued a compliance calendar highlighting key compliance datesthroughouttheyear.

● Ongoing.

● We regularly meet the IAA on matters on common interest and are updating our memorandum of understanding.

● Withtheairports,wereviewedexisting arrangements and are developing a framework for the monitoring and enforcement of compliance by groundhandlers.Thiswillbefinalisedin2019.


Financially Strong Tour Operators and Travel Agents Objective 1: Implement requirements of the Package Travel Directive


● InputtoDTTAS’workindetermining requirements of thePackageTravelDirective.

● Identify and implement changes to the licensing processtoreflecttherequirement of the Package TravelDirective.

● Complete consultation on the DirectiveandprovidefinaladvicetoDepartment.

● Implement revised requirements;guidelines;formsandupdatedprocesses.

● WeprovidedadvicetoDTTASon the requirements of the PackageTravelDirective.

● We will continue with this workin2019whenthePackageTravelDirectivehasbeen transposed into Irish legislation.Asatransitionalarrangement,we(a)providedinitial guidance to the industry and(b)acceptedfullindemnityinsurance cover from Irish establishedentitiesforallEUsales not covered by existing bonding arrangements and for Irish established airlines operating as Linked Travel Organisers.

Objective 2: Provide adequate protection to travelling public


● Implementstage2oftheprocess to identify solutions and necessary changes to existing processes for licensing,bondingandtraveller protection measures that are consistent with the requirements of the Package TravelDirective.

● Continue to administer the licensing regime and monitor compliancewiththescheme.

● Implement revised passenger protectionarrangements.Publish revised guidelines for licensees,revisedpassengerprotection measures and implement awareness programme.

● Issue renewals and licences on time,issuesresponsesontime,investigate allegations of illegal trading and take appropriate action,improveawarenessoflicensingregime.

● Stage2ofthisworkwasdelayed and will continue in 2019.

● Licences were issued to tour operators and travel agents intheMayandNovemberrounds.TravelTradeinvestigated eight complaints duringtheyear.


Robust Framework to Enforce Passenger Rights Objective 1: Deal with passenger complaints effectively, efficiently and fairly


● Investigate opportunities to reduce volume of queries that fall outside our remit

● Engagewithstakeholderstoensureefficientcomplainthandling process for passengers.

● Implement plan to reduce volumeofnon-Commissionrelatedqueries.

● Publish complaint handling process.

● We reviewed and amended our claims process to reduce the volume of claims outside ourremit.

● We put in place a process to quickly reduce the volume of complaintstoberesolved.Weexpect to clear the backlog in Q12019.Wewillcontinuetoreviewthisprocessin2019.

Objective 2: Increase travelling public’s awareness of air passenger rights


● Developacommunicationsplan,includingareviewofourwebsites,toincreaseawarenessofpassengerrights.

● Implement awareness programme.

● While some changes were made to our web site to provide passengers with clearerinformation,afullreview is dependent on progress in the regulatory reform work stream when a single website will be developed.


Regulation that Represents Best International PracticeObjective 1: Operate efficient systems


● Review systems for licensing Airlines,Groundhandlers,TourOperators and Travel Agents to ensurebestpractice.

● Benchmarkourselvesagainstothers to ensure best practice in enforcing and promoting passenger rights and airline compliance.

● Implement general data protection regulation requirements.

● Updatelicensingsystemsasnecessary.

● Updateprocessesasnecessary.

● Have compliant systems in placeinatimelymanner.

● Further changes were made to our licensing and monitoring processes.Wewillcontinuethisreviewin2018;makingimprovements necessary to ensurebestpractice.

● Ongoing

● WehaveaDataProtectionOfficertofacilitateandmonitorourcompliancewithGDPR.

Objective 2: Consult effectively


● Encourageincreasedlevelofconsultation on charges and infrastructure.

● Actively participate in the Thessaloniki Forum of EuropeanAirportChargesRegulators and the evaluation of the Airport Charges Directive.

● Co-ordinatewithotherrelevantagencies in relation to the regulationofDublinAirport.

● Developregulatorypolicyinpreparationforour2019DublinAirport determination drawing from experience of other regulatorybodies.

● Keepup-to-dateandprovideinformation to stakeholders (includingtheimpactofBrexitonaviation)inatimelymanner.

● Implementplan.

● Input to working group and forum meetings and report on progress.

● Share information with the IAA andINIS(asrequired)intheprocessforregulatingDublinAirport.

● Publishissuespaper.

● Provideupdatesasnecessary.

● We regularly meet our stakeholders,setupapassenger advisory group and put in place arrangements to increase the level of consultationbetweenDublinAirportandairlines.

● Two guidance reports were written by a working group that wechaired,andtheForumpublished these papers in December.

● Ongoing.Wepublishedanissues paper in April that sought views on high level regulatorypolicies.

● Ongoing.TheCommissionisamemberoftheNetworkofEconomicRegulatorsinIreland,amemberofEGFATT(anEUbodyconcernedwith travel trade consumer protectionmeasures)andpartakes in the Thessaloniki Forum.Inaddition,wemetourcounterparts in other Member States.


Objective 3: Maintain a skilled and motivated staff


● Align resource education and development plans with our Strategic Plan and put in place a training programme based on an analysis of the skill and competencyrequirements.

● Continue to use our Performance Management DevelopmentSystemtoensurebestbusinesspractice.

● Review organisational resilience

● Implement2018trainingplan.

● Conductgoalsetting,interimandannualprogressreview.

● Follow up on recommendations.

● A2018planwasputinplace.

● Completed.

● We carried out a resilience study which formed the basis of a work force plan that was submittedtoDTTAS.

Objective 4: Support the implementation of the national policy statement on airport charges regulation1


● InputtoDTTAS’sworkonthe economic regulatory framework.

● InputtoDTTAS’sworkonthe merger of the Safety RegulatoryDivision’s(SRD)functions of the ITAA1 with the existingfunctionsofCAR.

● Implement any resulting DTTASdecisions.

● Implement any resulting DTTASdecisions.

● WeinputtoDTTAS’sworkandwillreflecttheirdecisionsinfutureworkprogrammes.

● WeworkedwithDTTASandthe IAA to progress regulatory reform.Thisworkwillcontinuein2019.

1 Irish Travel Agents Association


Commission Papers and Other DocumentsPublishedin2018

Jan-18 PACEConsultationDocumentandRegulatorySubmission

Jan-18 CP1/2018 ProjectUpdate:TravelTradeConsumerProtectionMeasures

Jan-18 CP2/2018 DecisiononTimelineforCoordinationParametersDecisions

Feb-18 CP3/2018 DraftDecisionontheSecondInterimReviewofthe2014DeterminationinrelationtoaSupplementaryCapitalExpenditureAllowanceforDublinAirport

Mar-18 FinalReportonDublinAirportCapacityAssessment

Mar-18 CP5/2018 TranspositionofDirective(EU)2015/2302onpackagetravelandlinkedtravelarrangements

Apr-18 CP6/2018 DraftDecisiononWinter2018CoordinationParametersatDublinAirport

Apr-18 CP7/2018 IssuesPaper-MaximumLevelofAirportChargesatDublinAirport

May-18 CP8/2018 FinalDecisiononWinter2018CoordinationParametersatDublinAirport

Jun-18 CP9/2018 DecisionontheSecondInterimReviewofthe2014DeterminationinrelationtoaSupplementaryCapitalExpenditureAllowanceforDublinAirport

Aug-18 CP10/2018 DraftDecisiononSummer2019CoordinationParametersatDublinAirport,andLocalGuideline1

Aug-18 GovernmentPolicyNotification

Sep-18 CP11/2018 DecisiononSummer2019CoordinationParametersatDublinAirportandLocalGuideline1

Sep-18 CP12/2018 DecisiononPassengerAdvisoryGroupandPassengerEngagementGuidelinesinRegulatoryDecisionMakingforDublinAirport

Nov-18 CapitalInvestmentPlanfrom2020atDublinAirport

Nov-18 GuidanceDocumentandConclusionsof22NovemberMeetingwiththePassenger Advisory Group

Dec-18 Thessaloniki Forum Reports:

-TheUseofSelectiveCriteriaintheEconomicRegulationofAirports

-Non-DiscriminationundertheAirportChargesDirective.

2018 Q2DublinAirportCapitalProjectsDelivery



2018 2017-Q4QualityofServiceReport





Key Performance Indicators

Performance Indicator 2018 2017

Travel Trade Licensing2

Respond to applicants within one week of initial contact 94%

DecisioninPrincipleletterissuedwithinonemonthofcompletedapplication submission date

95%

Licenceissuedwithintwoweeksofbond/alldocumentsreceived 94%

Annual accounts examined within six weeks of receipt 73%

Numberoflicensees’premisesvisited 20%

Travel Trade Claims and Repatriations

Numberofclaimsreceivedfollowingcollapses 3

Numberofclaimsprocessedwithintwomonths 185 3

Numberofclaimsprocessedwithinfourmonths 279 -

Numberofclaimsprocessedwithinsixmonths 279 -

Administration costs as a percentage of total claims costs 12% 40%

Numberofpassengersrepatriated 200 -

Passengers awaiting repatriation after scheduled return date - -

Passengers awaiting repatriation for more than a week - -

Consumer Protection

Preliminary reviews of complaints completed within a week 100% 65%Est.3

ComplaintsreferredtoanotherNEBwithinamonthofreceipt 45% 40%

Investigations completed within three months of receipt4 19% 49%

Investigations completed within seven months of receipt5 59% 89%

Numberofairportinspections 2 6

Costs

Annual change in CAR costs +2% +17%

2 We revised our KPIs to apply from 2018.

3 Our complaint handling system was off line (for development work) for the first half of 2017. As queries and complaints were manually dealt with for that period, it is not possible to report a definitive KPI for the entire year. However, the sample we have examined suggests that 65% is an accurate extrapolation.

4 For compl