Case Study

Name: Irish Commission for Aviation Regulation (CAR) Date: 2001 to 2004 Project: Development of Regulatory Framework for Airport Charges Regulation

Summary: IMG assisted the Irish Commission for Aviation Regulation (CAR), the regulatory body established to govern Ireland's airports, on the development and maintenance of appropriate economic, technical, policy, and performance frameworks for overseeing the three major international commercial airports of Dublin, Shannon, and Cork

Issue: CAR required a systematic approach to fulfill their regulatory mandate to develop and administer airport charges through a fair and comprehensive process, while allowing the airport operator to develop, manage, and maintain the airports to the highest levels of service without placing an undue burden on airport stakeholders.

Solution: IMG assisted CAR in developing the regulatory instruments, systems, and structures required to satisfy its mandate. The regulatory structure, still in use today, incorporates financial, operational, and investment performance benchmarks and measurements to monitor and incentivize performance and establishes fair user charges which recover the government’s original investments and provide for a reasonable return.

Value Created: As a result of the regulatory system and performance management tools that IMG implemented, CAR has increased revenue, improved performance and accountability, and realized capital expenditure savings of over $1 billion.