RYANAIR BOSS Michael O’Leary often laments the fact that the Government and its various State agencies never listen to the helpful advice that he frequently doles out in relation to tourism and aviation here.
So he must have been pleased yesterday to discover that An Bord Snip Nua agrees with his view that the subsidised PSO (public service obligation) regional air routes are a waste of money and should be axed.
Colm McCarthy suggests that this would save the exchequer €15 million a year.
“The continued support of loss-making air services is unsustainable,” the report states.
It also recommends that the operational grant paid to regional airports be abolished, yielding a saving of €2 million.
O’Leary has long argued that the PSO routes are a waste of money. “At a time when we need hospitals, the State is subsidising rich people to fly from Knock and Shannon to Dublin,” he said recently.
It’s hard not to agree with him, given the tens of millions spent on upgrading the road and rail networks out of Dublin to the southern and western regions of the country.
Ironically, Ryanair operates the PSO route from Dublin to Kerry, although O’Leary says it would run this service regardless.
While O’Leary might welcome the move, alarm bells must be ringing at Irish regional airline Aer Arann.
The PSO routes are an important part of its business – they account for about 16 per cent of its estimated €90 million revenues.
Pádraig Ó Céidigh won’t be reaching for the life jacket just
yet, but at a time when consumer spending has nosedived and most airlines are losing money hand over fist, he won’t want to lose the subsidised routes to Galway, Sligo, Knock, Donegal and Derry.
Expect the west of Ireland lobby to leap into action. Its response to this proposal could make the reaction to the axing of Shannon-Heathrow by Aer Lingus look like a walk in the park.
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