The operator of Dublin Airport acted unlawfully when it tried to ban a company from running an off-site low-cost car rental service, the High Court has ruled. Judge Max Barrett found that the DAA breached competition law when it issued a cease-and-desist letter to ER Travel Service in March 2016.
The dispute over off-site car hire
ER Travel Service began picking up and dropping off customers at Dublin Airport in 2015. Rival car hire firms, which paid more than €34 million annually to the DAA for on-site rental operations, filed complaints about the service. The Car Rental Council of Ireland also raised concerns about the arrangement.
The DAA claimed ER was breaching its by-laws and could not operate a shuttle service to collect or drop off customers at the airport. Judge Barrett noted that ER had continued operating at the airport without permission from the DAA throughout the dispute.
ER provides low-cost car rental exclusively online and does not rely on passing trade. Customers book car hire services online and collect their vehicles at the company’s business premises near Dublin Airport, rather than at the airport itself. ER argued its service model is offered at most major airports across the EU and worldwide.
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Competition law implications
Other car rental companies secure slots for on-site operations at Dublin Airport through an open competitive tender process run by the DAA, typically every three years. This process was designed to maximize revenue and allows the DAA to manage where rental providers operate and how they handle customer pickups and drop-offs.
ER said it was willing to pay a licence fee, as related entities and other off-airport providers do in Europe. The company argued that the tender process and the DAA’s restrictions on off-airport providers prevented it from operating its business model in Ireland.
The DAA countered that ER was advised of the tender processes in 2016 and 2019 but chose not to participate in either round. The airport authority maintained that ER should have engaged with the established bidding system rather than operating independently.
Judge Barrett rejected the DAA’s position entirely. In his ruling, he concluded that the airport operator’s actions were “not grounded in considerations of aeronautical necessity, safety, or security.” He said they were instead “motivated by the protection of commercial revenue derived from on-site concessionaires.”
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For travelers seeking budget-friendly options, the distinction between on-site and off-site rental services can mean significant savings. ER’s model, which avoids the high costs associated with airport concession fees, allows the company to pass those savings on to customers booking online. The ruling suggests that passengers could benefit from more competitive pricing if such alternative providers are permitted to operate freely.
Court findings and remedies
Judge Barrett said the DAA’s conduct “effectively manifests a policy of tolerating only a singular business model for the provision of car rental services at the airport.” He found this approach unlawful under both EU and Irish competition law, as it prevented, restricted, or distorted competition for short-term car rental at Dublin Airport.
The judge also declared that the DAA had made by-laws that exceeded its powers. He declined to issue an injunction against the DAA, stating that “the DAA cannot elect to act unlawfully.” The ruling means the airport operator must now allow ER Travel Service to continue its off-site operations without interference.
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