Ryanair is today expected to cut some routes from its winter schedule and reduce flights on other services at Shannon Airport following a recent decision by the Shannon Airport Authority to increase passenger charges at the facility.
Airline Chief Executive Michael O'Leary will hold a press conference at The Clarion Hotel in Limerick this afternoon.
Earlier this year the airline, which employs around 40 people at the airport, reduced its winter capacity blaming the government's €10 travel tax. Shannon has also been affected by Aer Lingus' cancellation of transatlantic services from Shannon Airport for the first three months of 2011.
Clare Fine Gael TD Joe Carey said the government must act immediately to prevent Shannon Airport and the Mid-West region becoming an economic blackspot.
Deputy Carey said: “This expected news this afternoon is another hammer blow for the region, which is already suffering more than most in the economic downturn. Unemployment levels here are above the national average, and inward foreign investment has slowed down hugely.
"Ryanair handles about half a million passengers through Shannon Airport, and that activity is vital for the airport and the region. Further cuts are a major threat to the economic viability of Shannon Airport. The government along with the DAA, are not creating a proper business environment to retain airlines like Ryanair. I believe a positive start would be for government to indicate the axing of the disastrous €10 travel tax from this year’s budget. This tax has effectively doubled the price of many Ryanair winter flights out of Shannon.
"The DAA too must accept responsibility for these reductions in services. It is a failure of airport governance that a multi-year deal on passenger charges with Ryanair has not been agreed. The proposal to increase passenger charges at the airport in recent weeks from €1.58 to €6.32 from November 1st is, I believe, short sighted and unhelpful. This would mean that for some passengers the charge on return flights would be €12.64. At a time when the airport is competing for business in a very competitive tourist market, these increased charges make no economic sense", concluded Deputy Carey.
Shannon Airport last week announced that it plans to adjust its aeronautical charges to bring it in line with other peer regional airports.
The adjustment will see a €1.58 increase per passenger, the first increase in prices at Shannon since 2004. The passenger charge is the only element of aeronautical charges that is being adjusted, as landing charges and all other aircraft-related charges are being frozen at current levels.
“This is a small, but necessary, increase in overall charges that reflects the fact that Shannon is loss-making and needs to improve its viability,” said Shannon Airport Director Martin Moroney.
He continued: “This is the first time in six years that we have adjusted prices in Shannon. While this is an increase in headline prices, Shannon continues to offer generous support schemes to our airline customers, which include discounts of up to 100% on airport charges. Even with this adjustment, airport charges at Shannon remain lower than those at Dublin and in line with those at other comparable airports."
The passenger charge at Shannon will now move to €6.30 and this brings it in line with prices at other regional airports such as Cork, Ireland West Knock, Aberdeen, Southampton, Porto, Gothenburg and Malmo.
Ryanair last week called on the Department of Transport to intervene and order the DAA to reverse the charge increase.
Ryanair announced that if the price increases are not reversed, then it will shortly announce further flight and traffic cuts at Shannon, which it says has become "increasingly uncompetitive under the mismanagement of the Govt owned DAA monopoly".
Ryanair’s Michael O’Leary said: “Shannon Airport’s traffic in 2010 is on target to fall by 37% from 2.7m passengers, to 1.7m. Already this winter Aer Lingus has announced the closure of the transatlantic routes for three months from January 2011. The Government’s €10 tourist tax has also made Shannon Airport totally uncompetitive as a gateway to the West of Ireland.
“At a time when Shannon Airport should be lowering costs, particularly entering the winter, the airport has announced a crazy plan to raise passenger fees further by 33%. This will further damage Shannon’s flights, traffic and tourism business, since price sensitive passengers simply won’t pay these unjustified price hikes from a Government owned airport monopoly.
“The latest cost increases from Shannon Airport prove yet again that the Dept of Transport has no aviation policy in this country, other than protecting the near bankrupt DAA monopoly, even if it’s at the expense of destroying Ireland’s aviation and tourism industries. We call again on the Govt to break up the DAA monopoly and scrap the €10 tourist tax", added Mr. O'Leary
http://www.clareherald.com/regional/2822-more-ryanair-services-at-shannon-set-to-be-axed.html?lang=
Airline Chief Executive Michael O'Leary will hold a press conference at The Clarion Hotel in Limerick this afternoon.
Earlier this year the airline, which employs around 40 people at the airport, reduced its winter capacity blaming the government's €10 travel tax. Shannon has also been affected by Aer Lingus' cancellation of transatlantic services from Shannon Airport for the first three months of 2011.
Clare Fine Gael TD Joe Carey said the government must act immediately to prevent Shannon Airport and the Mid-West region becoming an economic blackspot.
Deputy Carey said: “This expected news this afternoon is another hammer blow for the region, which is already suffering more than most in the economic downturn. Unemployment levels here are above the national average, and inward foreign investment has slowed down hugely.
"Ryanair handles about half a million passengers through Shannon Airport, and that activity is vital for the airport and the region. Further cuts are a major threat to the economic viability of Shannon Airport. The government along with the DAA, are not creating a proper business environment to retain airlines like Ryanair. I believe a positive start would be for government to indicate the axing of the disastrous €10 travel tax from this year’s budget. This tax has effectively doubled the price of many Ryanair winter flights out of Shannon.
"The DAA too must accept responsibility for these reductions in services. It is a failure of airport governance that a multi-year deal on passenger charges with Ryanair has not been agreed. The proposal to increase passenger charges at the airport in recent weeks from €1.58 to €6.32 from November 1st is, I believe, short sighted and unhelpful. This would mean that for some passengers the charge on return flights would be €12.64. At a time when the airport is competing for business in a very competitive tourist market, these increased charges make no economic sense", concluded Deputy Carey.
Shannon Airport last week announced that it plans to adjust its aeronautical charges to bring it in line with other peer regional airports.
The adjustment will see a €1.58 increase per passenger, the first increase in prices at Shannon since 2004. The passenger charge is the only element of aeronautical charges that is being adjusted, as landing charges and all other aircraft-related charges are being frozen at current levels.
“This is a small, but necessary, increase in overall charges that reflects the fact that Shannon is loss-making and needs to improve its viability,” said Shannon Airport Director Martin Moroney.
He continued: “This is the first time in six years that we have adjusted prices in Shannon. While this is an increase in headline prices, Shannon continues to offer generous support schemes to our airline customers, which include discounts of up to 100% on airport charges. Even with this adjustment, airport charges at Shannon remain lower than those at Dublin and in line with those at other comparable airports."
The passenger charge at Shannon will now move to €6.30 and this brings it in line with prices at other regional airports such as Cork, Ireland West Knock, Aberdeen, Southampton, Porto, Gothenburg and Malmo.
Ryanair last week called on the Department of Transport to intervene and order the DAA to reverse the charge increase.
Ryanair announced that if the price increases are not reversed, then it will shortly announce further flight and traffic cuts at Shannon, which it says has become "increasingly uncompetitive under the mismanagement of the Govt owned DAA monopoly".
Ryanair’s Michael O’Leary said: “Shannon Airport’s traffic in 2010 is on target to fall by 37% from 2.7m passengers, to 1.7m. Already this winter Aer Lingus has announced the closure of the transatlantic routes for three months from January 2011. The Government’s €10 tourist tax has also made Shannon Airport totally uncompetitive as a gateway to the West of Ireland.
“At a time when Shannon Airport should be lowering costs, particularly entering the winter, the airport has announced a crazy plan to raise passenger fees further by 33%. This will further damage Shannon’s flights, traffic and tourism business, since price sensitive passengers simply won’t pay these unjustified price hikes from a Government owned airport monopoly.
“The latest cost increases from Shannon Airport prove yet again that the Dept of Transport has no aviation policy in this country, other than protecting the near bankrupt DAA monopoly, even if it’s at the expense of destroying Ireland’s aviation and tourism industries. We call again on the Govt to break up the DAA monopoly and scrap the €10 tourist tax", added Mr. O'Leary
http://www.clareherald.com/regional/2822-more-ryanair-services-at-shannon-set-to-be-axed.html?lang=
