The High Court dismissed Ryanair’s judicial review challenge to the Minister for Transport’s award of the Knock–Dublin public service obligation (PSO) contract to Aer Arann. The judgment was delivered by Ms Justice Finlay Geoghegan on 2 April 2009.
Ryanair argued that the Minister could not award the contract to Aer Arann without a new tender after CityJet, the initially selected bidder, withdrew. Ryanair also challenged changes to the compensation arrangements and the route timetable. The Minister defended the decision and argued that Ryanair lacked standing because it had not tendered for the route. Aer Arann did not participate in the proceedings.
The court found Ryanair had standing on its main ground because it had expressed interest in bidding if the Minister had issued a new invitation to tender. The judge said that conclusion did not establish standing on the other grounds; she considered them using her discretion.
CityJet accepted the offer by email but did not sign the written contract and told the Department on 8 July 2008 that it could not operate the route. The court held that the tender process was not complete until the written contract was executed. The tender documents did not expressly address a withdrawal at that stage, but the judge concluded that the Minister could offer the contract to the next preferred tenderer within the same process, subject to applicable EU law principles.
The court found no breach of equal treatment, non-discrimination or transparency. It also held that the tender documents and draft contract allowed compensation limits to be increased in exceptional circumstances involving unforeseen operating changes. The late withdrawal and the resulting shorter lead-in before service began were such circumstances, the judge found. The additional potential payment for October 2008 was not a material amendment requiring a new tender.
Ryanair further argued that the timetable did not let passengers make a same-day round trip in both directions. The court interpreted the route specification as requiring passengers starting from either Knock or Dublin to be able to make a round trip within one day, consistent with the requirement for at least one return flight daily. It found the challenged service specification met that requirement.
Having rejected each ground pursued, the court said it was unnecessary to decide whether Ryanair’s conduct otherwise warranted refusing relief. It ordered that Ryanair’s application be dismissed.