What is behind Ryanair’s latest spat with DAA

0
  • 3pc reduction on routes to Britain
  • mirrors predicted decline in English outbound
  • Ryanair expanding summer 2017 routes despite the reduction
  • Criticism of Dublin Airport ends 3-year truce
Robin Kiely, Michael O'Leary and Kenny Jacobs

Robin Kiely, Michael O’Leary and Kenny Jacobs

Dublin Airport was not primarily blamed for Ryanair’s decision to reduce seats from Dublin by 300,000 next year.

But it seemed that way after Kenny Jacobs hosted a press conference at Ryanair’s Swords headquarters. When Ryanair said it is switching 3pc of its seats away from Dublin as it said the main reason it was doing so was England’s referendum result.

Ryanair is to reduce seats to England but will introduce additional flights to Palma, Reus and Tenerife for summer 2017 and  Increased flights and frequencies from Shannon to Lanzarote and from Cork to Lanzarote and Malaga, reflecting the 6pc increase in inbound travel from Ireland reported by the CSO.

Its reduction of 3pc on Anglo-Irish routes mirrors the 3pc reduction in England’s outgoing travel predicted by David Scowsill of the WTTC. Ryanair is slightly more dependent on inbound visitors that Aer Lingus on routes between Ireland and Britain.

Ryanair added that the routes curtained may would be the newer routes developed under the Dublin Ariport Growth Incentive Scheme, and sought a guarantee that Growth Incentive Scheme will continue into 2017. The criticism ended a three-year truce between Ryanair and Dublin airport after two decades of angry exchanges.

READ  ITAA call on Government to clear backlog of passport applications and renewals as international travel gradually reopens

Ryanair has been the primary driver of growth at Dublin airport and was expected to remain so with 170 new aircraft on order.

The Growth Incentive Scheme pays a rebate in airport charges to airlines that grow their overall business at Dublin, and is open to all scheduled airlines at Dublin Airport.

Since 2011, Dublin Airport has paid €34.2m in rebates of airport charges under the scheme.

Ryanair willl offer 12m million seats from Dublin in 2017, a reduction of approximately 300,000 passengers, or 1,600 flights.

Kenny Jacobs said: ” Dublin Airport is becoming uncompetitive  It incentivises Ryanair to switch growth to other lower cost airports in Europe.”

Michael O’Leary said. “”There’s an incentive each year. But because we can’t get a decision on it at the moment, we have to [go ahead and]announce next summer’s schedule. We have just announced a 3pc cut in our capacity at Dublin next year.

Ryanair said it expects average fares in 2016 to fall by between 8pc to 10pc, and said early indications are that these price reductions will continue into the first quarter of 2017 as well. We urge all customers who wish to book their summer 2017 holidays to do so now on the Ryanair.com website, where they can avail of the lowest fare air travel to and from Ireland. Ryanair will deliver 14m customers to/from Ireland at lower fares in 2017. There will be increased flights and frequencies at Shannon and Cork but a small reduction in seats at Dublin as the DAA withdraws growth incentives. Ryanair, which has delivered over 70pc of the traffic growth at Dublin in 2014, 2015 and 2016, will now switch 3pc of seats away from Dublin to lower cost airports elsewhere in Europe.vRyanair’s Irish S17 schedule will see more frequencies to sun destinations for summer family holidays, lower fares as Ryanair passes on lower fuel costs, and an even better customer experience, as it rolls out year 3 of its “Always Getting Better” customer experience programme. Ryanair will continue to be Ireland’s number one airline, connecting Dublin with major leisure and business centres on high frequency, low fare services including Amsterdam (4 daily), Berlin (2 daily), Brussels (3 daily), London (17 daily) and Madrid (3 daily), with better timings and lower fares, making Ryanair the ideal choice for Irish business and leisure customers.

Dublin

  • Additional sun frequencies – Palma (2 daily), Reus (2 daily) & Tenerife (daily)
  • 85 routes in total
  • 12m customers p.a. (down 3%)
  • 9,000 on-site jobs
READ  Ryanair winter services announcement is ‘an important step’ in Shannon Airport’s recovery from the pandemic

Shannon

  • More flights to Lanzarote (2 weekly)
  • 14 routes in total
  • Over 700,000 customers p.a.
  • 540* on-site jobs

Cork

  • More flights to Lanzarote (5 weekly) and Malaga (5 weekly)
  • 17 routes in total
  • 860,000 customers p.a.
  • 650 on-site jobs

Knock

  • 12 routes in total
  • 570,000 customers p.a.
  • Up to 400 on-site jobs

Kerry

  • 5 routes in total
  • 270,000 customers p.a.
  • Up to 200 on-site jobs

Dublin Airport said: .”Ryanair’s growth at Dublin Airport over the past three years has been supported by a range of incentive schemes most notably the Growth Incentive Scheme, which remains in place  We would like to thank Ryanair for growing its business significantly at Dublin over the past three years and we look forward to continuing to work closely with them to support their route network from Dublin in the future

 

READ  ITAA responds to Malta’s requirement for Digital COVID Certificates only

 

.

The following two tabs change content below.

Comments

comments

Share.

About Author

Leave A Reply