Irish Cabinet backs law to scrap passenger cap at Dublin Airport

DUBLIN, Feb 10 (Reuters) - Ireland's cabinet gave formal backing on Tuesday to a law to scrap a passenger cap at Dublin Airport that has prompted calls from a group of U.S. airlines for restrictions on Irish airlines flying to the United States.

Transport Minister Darragh O'Brien said he wanted the law, which would give the government the power to lift the cap, to be passed by parliament as quickly as possible.

While the number of passengers at the airport is limited by local planners at 32 million, the imposition of the cap has been suspended pending a ruling by the Court of Justice of the European Union over its compliance with EU regulations.

The airport, which carries around 80% of the country's air travellers, overshot the cap by over 4 million passengers last year when the suspension prevented regulators from cutting the number of passenger seats airlines could sell.

U.S. industry trade group Airlines for America filed a complaint to the U.S. Department of Transportation last month accusing Ireland of breaching EU regulations and the EU-U.S. "Open Skies" agreement granting airlines the right to operate in each other's jurisdictions.

The group has complained the Irish government's legislative plans are too slow and has urged the U.S. Transportation Department to curtail Irish carriers' access to the U.S. if the cap is not swiftly scrapped.

That could significantly hurt Aer Lingus, the former flag carrier that is part of the IAG ICAG.L group of airlines and the only Irish airline with significant U.S. operations.

An advocate-general to the Court of Justice is due to deliver an opinion on the legality of the cap on Feb. 12. The court, which follows its advisers' recommendations in four out of five cases, is expected to then rule on the case in the coming months.