Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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Question 123: To ask the Minister for Transport, Tourism and Sport the rationale for a body such as the Irish Aviation Authority operating as a semi commercial body which sets its own charges and pay scales. [32096/12]

Leo Varadkar (Dublin West, Fine Gael)
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The Irish Aviation Authority (IAA) is a commercial semi-state body established under the Irish Aviation Authority Act 1993 and has two main functions, firstly the provision of air traffic management and related services in Irish controlled airspace, and, secondly, the regulation of safety in the civil aviation industry in Ireland.

These functions are inherently of an operational nature as distinct from policy. As such, there is a regular and ongoing day-to-day operational interaction with commercial and other entities in the aviation sector, domestically and internationally. When the IAA was being established almost twenty years ago it was considered that the delivery of its services to its airspace customers would be enhanced and more efficient and effective if it were operating in a commercially orientated environment where operational decisions could be made quickly and responsively.

The IAA does not receive State funding and generates sufficient revenue to cover all of its payroll and other costs through charges and fees raised from its airline customers and regulatory clients. The IAA's air navigation charges are amongst the lowest of States in Eurocontrol and I am satisfied that the IAA is operating its commercial remit in a satisfactory fashion. Furthermore, certain of the IAA's charges are either subject to national regulations or set within an EU regulatory framework. The CEO's salary has been capped in accordance with the Government decision on pay ceilings for CEOs of Semi State and senior public sector posts.