Ryanair nears truce with State on airport costs

Ryanair chief executive Mr Michael O'Leary has decided to stop "slagging off Government ministers".

Ryanair chief executive Mr Michael O'Leary has decided to stop "slagging off Government ministers".

But the outbreak of peace with the Government - and the end of Mr O'Leary's personalised attacks on the Minister for Public Enterprise, Ms O'Rourke - is unlikely to produce results quickly enough for the low-fares airline to launch proposed new ex-Dublin services next year, with the aim of bringing one million additional passengers.

Mr O'Leary met the Taoiseach Mr Ahern last week to discuss the Ryanair proposals. But in a conference call with analysts yesterday, he gave a strong hint that the Government was unlikely to make a decision quickly enough to allow Ryanair introduce five new routes next year which would generate one million passengers - enough to compensate for the loss of an estimated three-quarters of a million American tourists next year.

"Our view remains unchanged that Aer Rianta is a high-cost, inefficient monopoly, but perhaps the Irish Government's view is changing. Next year, half to three-quarters of a million American visitors will be lost and nobody is offering to do anything about it except us.

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"There is a new atmosphere and it's time to stop slagging off the Government and certain Cabinet ministers and work more co-operatively with them. If not, we could see 15,000 to 20,000 tourism jobs lost.

"The Government is giving some consideration to our plans to break the Aer Rianta monopoly and our plans for a second terminal. But I'm guessing that the Government will not be able to move quickly enough to meet our deadlines.

"We will need to begin pilot training for our new bases within a week. I can't see the Government moving in that time frame," Mr O'Leary said.

Ryanair has the plans in place for a £13 million (€16.51 million) terminal at Dublin airport which would have 12 departure gates. Ryanair commercial director Mr Michael Cawley said that the terminal would be fully funded and constructed by Ryanair.

Mr Cawley echoed his chief executive's view of the future facing the tourism industry, and said it faced "meltdown" next year.

If a deal could be done with the Government, Mr Cawley said Ryanair would base four or five aircraft in Dublin and Shannon and introduce between five and seven new routes from Italy, France, Germany and Scandinavia. He also said that if Ryanair did not achieve its target of one million passengers for new routes to Dublin, "we will pay full airport charges for any shortfall from that one million target".

Mr Cawley said Ryanair was close to an agreement with Belfast International Airport on a deal which could see new routes opened from Belfast to London, Paris, Frankfurt and Brussels. "An outline deal has been done on a potential base in Belfast for next year. If that is completed, we would base two or three aircraft in Belfast."

He said a decision on a second continental European base would be made soon. Ryanair opened up services from Brussels Charleroi to seven destinations in Ireland, the UK and Europe earlier this year. Pisa and Frankfurt have been mentioned as possible locations for the second continental base.