DAA Boardroom Battle and Passenger Cap Crisis Rocked Dublin Airport Growth
Key Points
- 1DAA CEO Kenny Jacobs faced a board rift and suspension notice in late 2025, with the issue unresolved as the year ended.
- 2The Minister for Transport blocked a reported €960,000 severance deal agreed between the DAA board and CEO Jacobs.
- 3Dublin Airport's 32 million passenger cap was significantly breached in 2024 and was expected to top 36 million in 2025.
- 4A High Court stay temporarily suspended the cap's enforcement, allowing airlines to expand capacity pending a European court review.
The commercial aviation sector in Ireland faced a turbulent year. The dominant story was the internal upheaval at DAA, the operator of Dublin and Cork Airports. A protracted dispute between the DAA board and Chief Executive Officer (CEO) Kenny Jacobs overshadowed other critical issues. This internal conflict diverted attention from the ongoing crisis over the Dublin Airport passenger cap.
The DAA Boardroom Battle
The rift between the DAA board and CEO Kenny Jacobs escalated throughout 2025. The board ultimately concluded that Mr. Jacobs was unsuitable for the role. This decision came after new issues emerged during an investigation into two formal complaints, which were ultimately not upheld.
In September, a mediation process resulted in an agreement for Mr. Jacobs to leave the State-owned business. This deal reportedly included a severance payment of nearly €1 million. However, Minister for Transport Darragh O'Brien, acting as the State's shareholder, blocked the settlement. This intervention led to a public standoff between the Minister and the DAA board.
As the year concluded, the situation remained unresolved. In December, Mr. Jacobs was served notice of a preliminary board decision to suspend him on full pay. The dispute involved questions over information provided to the board. It also included proposed, but later scrapped, changes to DAA policy on providing wheelchairs to passengers. The manner in which Mr. Jacobs handled relations with local planning authorities was also a factor in the rift.
Dublin Airport Passenger Cap Crisis
Separate from the boardroom drama, the passenger cap at Dublin Airport (DUB) presented a major challenge. The current limit is 32 million passengers per year. This restriction was a planning condition from 2007 for the construction of Terminal 2.
Passenger numbers have far exceeded this limit. Dublin Airport surpassed the cap in 2024 with 33.3 million passengers. The airport was on course to handle over 36 million passengers in 2025. This growth highlights the airport's role as a critical hub for global connectivity. The cap is seen by many in the industry, including major carriers, as an artificial restraint on Ireland's economy.
- The cap's original purpose was to limit traffic congestion on access roads.
- Improved road networks mean this original concern has largely abated.
- Airlines like Ryanair and Aer Lingus have challenged the cap, arguing it restricts growth.
Regulatory and Infrastructure Challenges
Legal and legislative action provided temporary relief but not a permanent solution. In April 2025, the High Court placed a stay on the cap's enforcement. This action temporarily blocked the Irish Aviation Authority (IAA) from restricting airline slots. This suspension is pending a referral of key legal issues to the Court of Justice of the European Union (CJEU). This temporary measure has allowed airlines to maintain and expand capacity, with some carriers adding up to 5,000 extra flights for the summer 2026 season.
In September 2025, Transport Minister Darragh O'Brien secured Cabinet approval for primary legislation to remove the cap. However, the legislative process is complex and is not expected to be complete until late 2026. Industry leaders, such as Ryanair CEO Michael O'Leary, have sharply criticized the slow pace of governmental action.
The ongoing uncertainty presents a major risk for future planning and investment. Airlines need certainty to commit to new routes and aircraft deployment, which can take years of planning. This is a key concern for global bodies like IATA and regulators such as EASA who prioritize safe and sustainable capacity growth. The DAA's plans to accommodate up to 40 million passengers by 2030 require significant infrastructure investment. Delays in removing the cap hinder the necessary planning and construction. Furthermore, a separate planning ruling in July 2025 limited night flights at the airport to 35,672 annually, adding another layer of operational constraint. The aviation sector continues to monitor these developments for clarity on Ireland's future connectivity and infrastructure plans, as reported by leading commercial aviation news outlets. The need for long-term planning, including the use of aircraft from manufacturers like Boeing, remains paramount for the airport's growth.
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