Aer Rianta extends discount schemes

Aer Rianta said last night that it would extend until December 31st two discount schemes for airlines operating from Dublin Airport. The schemes were due to be abolished today.

Industry sources said last night that the extensions - following the intervention of the Minister for Public Enterprise, Ms O'Rourke - would cost Aer Rianta, the State airports' operator, several million pounds. The company is also facing the loss of substantial revenues from today, following the abolition of duty-free.

Aer Rianta is extending for six months the 25 per cent discount on passenger-load fees which it gives to airlines such as Ryanair, British Midland, Aer Lingus and CityJet on their flights to Britain. It is also extending the Dublin Airport Pier A discount which it gives to Ryanair and Aer Lingus for passengers using the Dublin/ London and Dublin/UK provincial routes as well as some domestic routes.

An Aer Rianta spokesman stressed last night that these and several other discount schemes will definitely be eliminated from January 1st and that this decision had been agreed between the Minister and Aer Rianta chairman Mr Noel Hanlon.

The extensions follow angry meetings between Aer Rianta and the airline operators in recent weeks. They accused Aer Rianta of seeking to recoup its losses from the abolition of duty-free by charging them higher prices for airport facilities.

According to her spokesman, Ms O'Rourke wrote to Aer Rianta last Friday, asking it not to unwind the UK discounts from July 1st. Aer Rianta then requested a meeting and she met Mr Hanlon on Tuesday. Finally, Aer Rianta issued last night's statement.

The other discounts to be abolished on December 31st include the winter discount for landing charges (airlines get cheaper rates in winter), the overnight aircraft parking discounts and all remaining pre-1997 growth discount schemes. Aer Rianta said Ms O'Rourke had confirmed to the chairman that she would bring forward legislation to appoint a regulator for the airports before the end of 1999. The regulator will adjudicate on airport charges and other issues.

Last night, Ryanair welcomed the discount extensions and announced a celebratory seven-day seat sale, involving 20,000 cheap tickets for those travelling in the first three weeks of July. The sale includes a £10 return fare to London and a £20 return fare to Paris.