Airline blames decision on travel tax and airport costs

RYANAIR IS to cut the number of flights it operates at Dublin airport by 20 per cent during the winter season, blaming the Government’s €10 travel tax and high airport costs for its decision.

The airline had announced in June that it would cut the number of aircraft at Dublin to 16. Yesterday, it said it would reduce the number to 14. Four of the aircraft will be redeployed to Spain, one to Portugal and the other to Britain.

Like other airlines, Ryanair typically cuts flights during the winter season. Last winter the airline cut its Dublin schedule by 20 per cent to 1,200 flights. This year it is cutting flights by a further 20 per cent to fewer than 1,000 per week.

“The cuts . . . are entirely because of the travel tax,” chief executive Michael O’Leary said yesterday. “Dublin airport are proposing to hike up charges, even while passenger numbers are collapsing. It’s tourism suicide.”

The 20 per cent reduction does not affect the announcement on Wednesday of 39 new routes to the Canary Islands this winter, which includes two from Dublin.

The cuts will result in 250 job losses at Dublin airport, Mr O’Leary said. One hundred and fifty of those will apply to Ryanair employees who will be moving to other European airports; the remaining 100 jobs losses will be in handling and support companies at Dublin airport.

Mr O’Leary said that between five and seven routes from Dublin will be closed this winter, although they will be reinstated next summer. Among the routes that will be cut are those to Nice, Dusseldorf-Weeze and Billund.

Minister for Enterprise Mary Coughlan said that Ryanair’s decision was due to the general downturn in the aviation industry, rather than the reasons given by Mr O’Leary. “Unfortunately the situation is that not as many people are travelling at this moment in time, but hopefully when we get stability back into the market, we will see a reversal of that.”

The Dublin Airport Authority has also disputed Mr O’Leary’s claim that charges at Dublin airport are behind the cuts. It said independent research shows that passenger charges at Dublin airport are among the lowest of any comparable European airport.

Mr O’Leary confirmed that his bonus for the year to the end of March was cut by almost 50 per cent to €241,000. He also said that Ryanair expected to announce the opening of a new base in Britain in the next two weeks.