1. General

1.1 Please list and briefly describe the principal legislation and regulatory bodies which apply to and/or regulate aviation in your jurisdiction.

The Department of Transport ("DOT") is the Government department responsible for aviation policy in Ireland. It is assisted in carrying out its functions by the following public bodies:

  • The Irish Aviation Authority ("IAA").
  • The Air Accident Investigation Unit ("AAIU"), which is responsible for air accidents that take place in Ireland and air accidents that occur outside Ireland involving Irish registered aircraft.
  • The Environmental Protection Agency ("EPA"), which is responsible for the implementation of the European Union ("EU") emissions trading scheme.
  • AirNav Ireland, which is responsible for air navigation and air traffic management.

The Commission for Aviation Regulation ("CAR") merged with the IAA on 30 April 2023 as part of the Irish Government's regulation reform to establish a single national civil aviation regulator.

The air navigation functions of the IAA have moved to a separate commercial semi-state company, AirNav Ireland, which now provides air traffic control services at the State airports of Dublin, Cork and Shannon and air space covering 455,000 square kilometres.

The key functions of the IAA include:

  • registering aircraft in Ireland;
  • certifying and registering aircraft airworthiness;
  • licensing personnel and organisations involved in aircraft maintenance;
  • licensing pilots, air traffic controllers and aerodromes;
  • approving and monitoring air carrier operating standards;
  • registering drone operators;
  • scheduling coordination/slot allocation at Irish airports;
  • licensing the travel trade in Ireland;
  • licensing airlines and approval of groundhandling services providers;
  • monitoring and regulation of EU legislation covering Air Passenger Rights and the provision of assistance to Passengers with Reduced Mobility; and
  • oversight of civil aviation security.

Principal legislation

The principal aviation legislation applicable in Ireland is as follows:

  1. the Air Navigation and Transport Acts 1936–2022;
  2. the Irish Aviation Authority Act 1993 (as amended);
  3. the Package Holidays and Travel Trade Act 1995 (as amended);
  4. the Aviation Regulation Act 2001 (as amended);
  5. the Air Navigation and Transport (International Conventions) Act 2004 (as amended);
  6. the International Interests in Mobile Equipment (Cape Town Convention) Act 2005 (as amended);
  7. the Aviation Act 2006;
  8. the Air Navigation (Notification and Investigation of Accidents, Serious Incidents and Incidents) Regulations 2009;
  9. the State Airports Act 2004 (as amended);
  10. the State Airports (Shannon Group) Act 2014;
  11. EC (Access to the Ground Handling Market at Community Airports) Regulations 1998 (S.I.505/1998);
  12. EC (Common Rules for the Operation of Air Services in the Community) Regulations 2008 (S.I.426/2008);
  13. EC (Rights of Disabled Persons and Persons with Reduced Mobility when Travelling by Air) Regulations 2008 (S.I.299/2008);
  14. Regulation EC/95/93 (as amended by Regulation (EC) 793/2004) on common rules for the allocation of slots at community airports;
  15. Regulation EC/261/2004 establishes common rules on compensation and assistance to passengers in the event of denied boarding and of cancellation or long delay of flights;
  16. Regulation EC/1107/2006 concerning the rights of disabled persons and persons with reduced mobility when travelling by air;
  17. Regulation EC/1008/2008 (as amended by Regulations (EU) 2018/1139, 2019/2 and 2020/696) on common rules for the operation of air services in the community;
  18. Regulation EU/373/2017 (as amended by Regulation (EU) 2020/469) – the Air Traffic Management Common Requirements Implementing Regulation (ATM/IR);
  19. Commission Delegated Regulation (EU) 2019/945 (as amended by Commission Delegated Regulation (EU) 2020/1058) on unmanned aircraft systems and on third-country operators of unmanned aircraft systems, and Commission Implementing Regulation (EU) 2019/947 (as amended by Commission Implementing Regulations (EU) 2020/639 and 2020/746) on the rules and procedures for the operation of unmanned aircraft; and
  20. Irish Aviation Authority (Standardised Rules of the Air) Order 2019 (S.I.266/2019).

1.2 What are the steps which air carriers need to take in order to obtain an operating licence?

An aircraft operator involved in commercial air transport must be the holder of a valid Air Operator Certificate ("AOC") issued by the IAA and a valid Air Carrier Operating Licence ("ACOL") issued by the IAA.

In order to qualify for an ACOL, an applicant must satisfy all of the conditions for granting an operating licence set out in Article 4 of principal regulation EC1008/2008.

The applicant must, among other things, have its principal place of business and registered office (if any) in Ireland, and its main occupation must be air transport, in isolation or combined with any other commercial operation of aircraft or repair and maintenance of aircraft.

The applicant must also meet the ownership and control requirements of the legislation (i.e. EU Member States and/or nationals of EU Member States must own more than 50% of the undertaking and effectively control it).

In addition, applicants must meet requirements regarding financial fitness and insurance cover.

1.3 What are the principal pieces of legislation in your jurisdiction which govern air safety, and who administers air safety?

The IAA is responsible for administrating Ireland's international aviation safety obligations and agreements in accordance with standards set by the International Civil Aviation Organisation ("ICAO"), the European Aviation Safety Agency ("EASA"), EUROCONTROL and the European Civil Aviation Conference ("ECAC").

The Safety Regulation Division of the IAA ensures specific compliance with safety objectives set down under section 14 of the Irish Aviation Authority Act 1993 (as amended) and the annexes to the Chicago Convention, which are implemented through a combination of EU and domestic Irish legislation.

The IAA's remit with respect to safety includes certification and registration of aircraft airworthiness, licensing personnel and organisations involved in aircraft maintenance, incident reporting and management, the protection, storage and collection of information, licensing pilots, air traffic controllers and aerodromes, and approving and monitoring air carrier operating standards.

There are EU safety regulations relating to initial and continuing aircraft airworthiness that are directly effective in the EU (including Ireland), for example: Regulation (EU) 2018/1139 on common rules in the field of civil aviation and establishing a European Union Safety Agency; Regulation (EU) 748/2012 regarding the implementation of essential requirements for airworthiness and environmental protection; Regulation (EU) 2015/640 on additional airworthiness specifications; and Regulation (EU) 1321/2014 (as amended and updated by EU Commission Implementing Regulations 2019/1383, 2019/1384, 2020/270, 2020/1559 and 2021/700), relating to the continuing airworthiness of aircraft and aeronautical products, parts and appliances, and on the approval of organisations and personnel involved in these tasks.

In April 2019, the European Commission adopted performance targets in respect of the level of effectiveness of safety management to be achieved by air navigation service providers for the period 2020–2024 pursuant to Commission Implementing Decision (EU) 2019/903 of 29 May 2019.

1.4 Is air safety regulated separately for commercial, cargo and private carriers?

No, the IAA regulates commercial, cargo and private carriers.

1.5 Are air charters regulated separately for commercial, cargo and private carriers?

No, the IAA regulates the sector.

1.6 As regards international air carriers operating in your jurisdiction, are there any particular limitations to be aware of, in particular when compared with 'domestic' or local operators? By way of example only, restrictions and taxes which apply to international but not domestic carriers.

The creation of the EU single market for aviation in the 1990s removed all commercial restrictions on airlines flying within the EU. Under the single market, all EU carriers can operate services on any intra-EU route.

Outside the EU single market, access to the air transport market is still heavily regulated under the framework set down in the Chicago Convention. Under the Chicago Convention, Ireland has negotiated bilaterally with a wide range of States to agree market access rights for both passenger and cargo services. A list of States with which Ireland has a bilateral air transport agreement is available on the DOT's website: [Hyperlink] . Following the "Open Skies" judgment in the European Court of Justice in 2002, all market access rights negotiated by each of the EU Member States in their bilateral agreements must be equally available to all EU carriers.

Furthermore, under the EU's external aviation policy, the European Commission has been mandated to negotiate air transport agreements on behalf of the EU and its Member States with certain third countries. Under this process, so-called "Open Skies" agreements have been negotiated, removing restrictions on capacity, routing and other limits, creating a free market for services between the parties to that agreement.

Most bilateral air transport agreements require that substantial ownership and effective control be maintained by nationals of each party to the agreement. Within the EU, Community airlines are required to be at least 50% owned by EU nationals. The EU has indicated its willingness to negotiate these current ownership and control limitations with States prepared to similarly waive the requirement on a reciprocal basis.

1.7 Are airports state or privately owned?

The three main airports (Cork, Dublin and Shannon) are publicly owned commercial airports. These airports are owned by State-owned commercial companies, with Dublin and Cork airports owned by daa plc and Shannon Airport owned by Shannon Airport Authority DAC.

1.8 Do the airports impose requirements on carriers flying to and from the airports in your jurisdiction?

Aviation terminal services charges are levied by the IAA on users at Cork, Dublin and Shannon airports. Dublin airport is the only Irish airport currently subject to economic regulation of the charges it imposes on airlines. Economic regulation of charges at Dublin airport is based on the Aviation Regulation Act 2001 and is implemented by the IAA.

1.9 What legislative and/or regulatory regime applies to air accidents? For example, are there any particular rules, regulations, systems and procedures in place which need to be adhered to?

The AAIU is responsible for conducting technical investigations into air accidents in Ireland, as well as incidents outside of Ireland involving Irish-registered aircraft.

The Air Navigation (notification and investigation of accidents, serious incidents and incidents) Regulations 2009 ("2009 Regulations") give effect to the requirements of Annex 13 of the Chicago Convention and give the AAIU the powers it needs to carry out full and detailed technical investigations.

EU Regulation 996/2010 on the Investigation and Prevention of Accidents and Incidents in Civil Aviation (as amended by Regulations (EU) 376/2014 and 2018/1139) is directly applicable in Ireland.

Following an investigation, the AAIU will issue safety recommendations to the appropriate aviation authority. The AAIU does not purport to apportion blame or liability in respect of an accident.

1.10 Have there been any recent cases of note or other notable developments in your jurisdiction involving air operators and/or airports?

The airline industry has recovered substantially from the COVID-19 pandemic during 2023 and according to the IATA traffic globally is now at 95.7% of pre-COVID levels and airline profitability is beating expectations. According to the Irish Central Statistics Office, in the first quarter of 2023, 7.6 million passengers passed through the five main Irish airports, up 62% compared with 2022 and up 29% when compared with the same period in 2020, with an increase in the number of flights of 15,700 when compared to the same period in 2022.

Impact of EU Sanctions on Russia on EU Aviation

Since 2014, the EU has imposed a series of sanctions on Russia and these measures were significantly escalated following commencement of the war in Ukraine in February 2022. The sanctions imposed severely curtailed the ability of Irish aviation lessors to provide any type of service to any natural or legal person, entity or body in Russia and prohibited the sale, supply, transfer or export of aircraft or aircraft parts to Russia. This includes a prohibition on leasing aircraft to Russian entities, with all Irish lessors being obligated to terminate existing aircraft leases to Russian entities by 28 March 2022. In addition, Russian operated air-carriers are prohibited from overflying the territory of the EU and technology can no longer be supplied to the aviation industry in Russia. This prohibition also applies to the provision of related services such as insurance and reinsurance of Russian connected aircraft.

In October 2022, the EU announced further sanctions against Russia, including section 5n of Regulation 833/2014 (as amended)the prohibition of, inter alia, providing direct or indirect legal advisory services to the Government of Russia or legal persons, entities or bodies established in Russia. This means that any non-contentious legal advice may no longer be provided to in-scope entities, except for some limited exceptions. In terms of the Irish aviation and leasing industry, it means that law firms can no longer: give advice on commercial transactions involving the application or interpretation of law; participate with or on behalf of clients in commercial transactions, negotiations and other dealings with third parties; or prepare, execute or verify legal documents to the above-referenced Russian entities. Inclusion of "indirect" advice within the ambit of the Regulation brings legal entities owned or controlled by Russian parties into scope.

In June 2023, the transit prohibition for certain goods including aviation-related materials was extended to goods exported from the EU to third countries via Russia. In August 2023, measures were introduced which amend Regulation (EC) 765/2006 and seek to align the restrictive sanctions against Belarus with those imposed against Russia to ensure that Russian sanctions cannot be circumvented through Belarus. This includes an additional export ban on goods and technology suitable to use in the aviation industry.

The Irish High Court has seen a number of cases being lodged by several Irish lessors with respect to insurance claims arising from the estimated 400 aircraft that these lessors have been unable to recover from Russia following termination of the leases as mandated by EU sanctions. The cases have been subject to appeals during 2023 regarding jurisdiction of the Irish Courts and the discovery of insurance documentation. The cases are ongoing and will continue into 2024.

In a recent decision of the Irish High Court, the Court considered the effect of the sanctions regulations on two Irish domiciled companies in liquidation, GTLK Europe DAC and GTLK Europe Capital DAC. The companies formed part of the GTLK international transport leasing business and its parent company, Joint Stock Company GTLK, was incorporated in the Russian Federation. The Russian parent company was added to Annex 1 of EU Regulation 269/2014 of 17 March 2014 (the "Asset Freeze Regulation"). The High Court found that the presumption of control of the Irish companies by its Russian parent company contained in the Asset Freeze Regulation was rebutted by virtue of the appointment of the joint liquidators to the Irish companies.

The ongoing liquidation of GTLK Europe DAC and GTLK Europe Capital DAC is understood to be the largest liquidation in the history of the State.

1.11 Are there any specifically environment-related obligations or risks for aircraft owners, airlines, financiers, or airports in your jurisdiction, and to what extent is your jurisdiction a participant in (a) the EU Emissions Trading System (EU ETS) or a national equivalent, and (b) ICAO's Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)?

Irish environmental legislation generally implements EU environmental policies or directives. EU environmental regulations are also part of national law in Ireland and are enforceable. There is a significant body of environmental legislation which includes general environment-related obligations with which businesses operating in Ireland are required to comply. The legislation includes obligations relating to waste management, chemicals, water, air quality and noise emissions. A financier would be responsible for ensuring compliance with such obligations where a financier takes possession of an asset located in Ireland through appointing a receiver or otherwise. It is important for owners and financiers to be able to monitor environmental compliance of lessees particularly with respect to EU ETS and CORSIA obligations.

The EPA is the primary body tasked with implementing and enforcing environmental obligations in Ireland. The IAA also plays an important role in the context of the aviation sector with a view to maintaining environmental standards that comply with the requirements of the ICAO, the EU and EASA, among others. The IAA is responsible for the issue of noise certificates for Irish registered aircraft in compliance with EASA noise certification levels.

EU ETS

The EU ETS Directive 2003/87/EC (as amended) (the "EU ETS Directive") has been implemented into national law in Ireland through various statutory instruments. Aircraft operators operating in Ireland are required to monitor, report and verify their CO2 emissions and to surrender allowances against those emissions. Any shortfall between the allocated sum of free emissions allowances and their actual emissions require the purchase of additional allowances. The EU has limited the scope of the EU ETS to flights within the European Economic Area until 31 December 2023. The EPA is responsible for administering the EU ETS obligations for aircraft operators assigned to Ireland.

CORSIA

Ireland has volunteered to participate in CORSIA for its pilot phase which commenced on 1 January 2021 and ran through to 1 January 2023. The first phase will then take place from 2024 to 2026, in which Ireland will participate. Unlike EU ETS which is a "cap and trade" scheme that sets an upper limit for the total amount of emissions, CORSIA is an "offsetting scheme", implying that emissions can grow but must be compensated by offsets. CORSIA requires aircraft operators to offset a part of their emissions through the purchase and cancellation of CORSIA eligible emissions units. CORSIA applies to international (not domestic) flights.

In June 2022, the EU Parliament and the European Council agreed on a joint proposal to incorporate CORSIA into the EU ETS monitoring, reporting and verification ("MRV") framework and to gradually phase out free aviation emissions allowances to airlines by 2027. A meeting between the Parliament, Council and Commission is to agree on a final Directive. The Council dismissed the Parliament's proposal to include all extra-territorial flights into and out of EU airspace within the EU ETS framework (though it may reconsider this if the ICAO Assembly does not set a long-term carbon reduction goal for aviation).

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Originally published by ICLG.com

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