Ryanair announced today that it is to cut the number of aircraft and services it operates out of Shannon Airport and transfer over 100 jobs from the facility.
The budget airline attributed the move to a decision by the Government to introduce a €10 visitor tax, which it warned could could eventually lead to some 700 support staff losing their jobs at the Co Clare airport.
Ryanair has lobbied consistently against the €10-per-passenger airport travel tax introduced in the last budget.
The airline said that with the tax in place it has no choice but to reduce its Shannon based aircraft from six to four this summer, and reduce its route network at the airport from 30 to 25 and its weekly Shannon services from 136 to 116 flights from March 30th.
It currently employs over 300 people at Shannon. This is to be reduced to under 200, but staff are to be transferred elsewhere rather than lose their jobs.
Michael O'Leary, Ryanair chief executive, said the company would be willing to reverse the decision, which would see Ryanair traffic at the airport fall by oevr one third or 700,000 passengers this year, if the Government scrapped the tax.
Mr O'Leary said the tax is devastating forward bookings in Shannon, because in many cases it exceeds the air fare that is paid by many passengers.
"Having invested millions of euro and sustained large losses growing Ryanair's base in Shannon over the past 4 years from 400,000 to 1.9m passengers (at a time when Aer Lingus and many other airlines pulled out) this insane €10 visitor tax will devastate traffic at Shannon," he said.
"It is not as if the Irish Government hasn't seen examples from other EU countries of the devastating failure this travel tax will have on visitor numbers.
"The UK's traffic has already fallen 10 per cent and Dutch visitors by even more since they introduced an equally stupid and self defeating tourist tax. Ryanair again calls on the Government to scrap this suicidal tax measure."
Fine Gael Tourism Spokesperson, Olivia Mitchell TD said the announcement by Ryanair is the latest proof that the travel tax is a catastrophe.
"Instead of disincentivising passengers and tourists, and losing access routes into Ireland, the Government should be out marketing the benefits of Shannon," she said.
