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Aer Lingus is concerned about the seriousness of US retaliation in relation to Dublin Airport Cap

Aer Lingus' chief executive warned on Wednesday that there is a "serious" risk the U.S. could take retaliation and limit its number of transatlantic flights, if the Dublin Airport passenger cap was not?quickly?removed. The Irish government pledged that it would pass a new law before the summer, lifting the 32 million passengers-per-year limit currently suspended in anticipation of a European Court decision. Last year, the airport exceeded its limit by four million passengers.

Airlines for America, a U.S. trade group for the industry, filed a complaint in January with the U.S. Department of Transportation accusing Ireland of violating the EU-U.S. Open Skies agreement that grants airlines the right of operation in each jurisdiction. It also asked the Department to restrict Irish carriers' access to the U.S.

Lynne Embleton (CEO, IAG owned Aer Lingus) told a committee of parliament that was examining the proposed law: "I believe there is a risk of retaliation.

Willie Walsh, former CEO of Aer Lingus and head of the International Air Transport Association, told the committee there was "no doubt" that retaliation threats were real.

A4A CEO Chris Sununu stated that he had discussed the issue with the White House and Department of Transportation last week, and the U.S. closely monitors the next steps.

If you think that this administration will just accept a violation of one of its bilateral agreements, then they are not going to listen. If you haven't seen the headlines yet, this is not what they do," he said.

Sununu said at the end that he will?bring'some good news'?back to Washington, that lawmakers are prepared to move rapidly.

In 2007, the cap was included in the planning permission granted for?construction a second terminal. This was done to reduce local traffic congestion. It was only in 2024 that the issue became a problem, when passenger numbers reached the limit.

After a court advisor endorsed the cap's basis last month, airlines are pressing ministers to accelerate?the legislative procedure. The airport could be forced to drastically reduce capacity if a new law isn't in place by the time a court ruling from the EU comes into effect.

(source: Reuters)