Consultants being hired to deal with separation of IAA roles
THE Commission for Aviation Regulation is hiring consultants to help it handle a reorganisation of the functions of the Irish Aviation Authority (IAA).
The for-profit air navigation service activities currently undertaken by the IAA are due to become a standalone business as a commercial semiState body.
The move is being made as it’s seen as best industry practice to separate the current dual roles held by the IAA.
The aviation safety and security regulatory functions of the IAA and the economic and consumer protection roles of the Commission for Aviation Regulation are being merged to form a new entity.
Earlier this month, Diarmuid O’Conghaile took over as the new aviation regulator within the IAA.
He’s overseeing the separation of activities at the agency and he will eventually be the chief executive of Ireland’s newly-constituted Aviation Regulator, which will be responsible for safety, security, economic and consumer protection functions.
The Commission for Aviation Regulation (CAR) currently has a number of roles, including setting passenger charges at Dublin Airport, consumer protection and licensing of airlines.
Prior to his appointment, Mr O’Conghaile was chief executive of Malta Air, a subsidiary of Ryanair. He has previously held other senior management roles at Ryanair, and also worked with airport operator DAA and An Post.
The Government had intended that the legislation required to separate the aviation functions would be before the Oireachtas last autumn. However, it’s now expected to be presented some time in the first half of this year.
“In preparation for this separation and merger we require advice and support from a suitably qualified financial consultancy company,” the CAR has told prospective bidders for the work.
“While this is being procured through the CAR, the winning bidder will provide assistance to both the CAR and the regulatory part of the existing IAA – that is, the entities who will form the new regulator on completion of the process.”
“Bids should include a strong project manager (lead consultant) who will lead on the work, co-ordinate and draw on expertise within their organisation and be a single point of contact to liaise with the client,” it added.
“The contract will remain in place for two years,” notes the invitation to tender. “We expect to commit to an initial 50 days of work in the immediate term, this is likely to be increased but there is no commitment to a specific amount of work beyond this.”
Last week, the IAA said it had agreed payroll reduction measures from January 8 for its staff after its revenue from the provision of air navigation services fell sharply due to the pandemic.
A banded pay reduction of up to 10pc has been implemented until January 6 next year for air traffic controllers. That will save the IAA about €6m.
However, it noted that cost containment measures implemented in 2020 have been partially offset by unanticipated costs such as the purchase of PPE and deep cleaning of operational facilities.