ANY MOVE by Ryanair to reduce its Shannon airport base by 75 per cent “would turn the airport into a ghost town”, it has been claimed.
The mayor of Clare, Tony Mulcahy (Fine Gael), was responding to a threat by Ryanair to reduce the number of aircraft at Shannon to only one from next May if the Government does not remove the €10 departure tax by next February. Mr Mulcahy said yesterday: “If Ryanair presses ahead with this, it will cause horrendous damage.” He described the departure tax as “senseless”.
Shannon-based councillor Patricia McCarthy (Ind) said that relying on one airline for a large proportion of traffic had been detrimental for the airport. “Your choice is reduced and you are also leaving yourself open to pressure from the airline that if they pull out, what services are left.”
Ryanair agreed its five-year deal, due to expire next April, in 2005. “It seemed a good deal at the time and everyone has benefited from lower fares,” Ms McCarthy said.
With the reduction in the airport’s transatlantic services, the Shannon Airport Authority has become even more reliant on Ryanair services.
In 2007, Ryanair’s 1.6 million passengers accounted for 46 per cent of the 3.6 million passengers at Shannon and last year the airline’s 1.85 million passengers accounted for 59.6 per cent of the 3.1 million passengers.
At its peak during the existing deal, Ryanair operated 32 routes out of Shannon.
The airline issued the ultimatum to reduce its services by 75 per cent last Wednesday as it revealed that in talks to extend the current deal with the airport authority, it said it was seeking a 50 per cent reduction in its costs at operating at Shannon. In a letter to the authority, Ryanair has confirmed that it has lost money on each year of its current five-year deal.
Joe Carey TD (Fine Gael) said yesterday: “While there is inevitably a certain amount of gamesmanship and negotiating tactics from Ryanair, there can be no doubt that the travel tax has been a disaster for the Midwest region. It should be removed and removed immediately.”
Timmy Dooley TD (Fianna Fáil) claimed Ryanair was struggling to meet its passenger targets before the departure tax was imposed.
