Ryanair in talks with Dublin Airport over launch of possible new routes

Discussions could herald thaw in fraught relationship

Ryanair is in talks with Dublin Airport about the possibility of launching new services from there – indicating a possible thaw in relations between the two.

In its annual results statement yesterday, the airline said it was in “active discussion with the new owners of Stansted Airport and the new management at Dublin Airport” about the possibility of expanding services from either base by September this year.

Ryanair chief executive Michael O'Leary has consistently criticised the Dublin Airport Authority (DAA) and its predecessor, Aer Rianta, over high charges and aimed a number of broadsides at it and the Department of Transport in its 2012 results statement.

However, deputy chief executive Howard Millar said yesterday that the airline had met the DAA' s new head, Kevin Toland, and Stansted's new owners, Manchester Airports Group.

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New routes
Mr Millar said the carrier was interested in hearing what incentives both were offering to airlines opening new routes from their airports.

“We are looking at getting reductions in charges so we grow our business from either Dublin or Stansted,” he said.

Ryanair already has 40 aircraft based at Stansted, around 13 per cent of its 305-strong fleet. Mr Millar said traffic from there had been falling, and that the new owner, which paid €1.35 billion for it in March, is looking to increase the number of people using the hub.He also said the company had met Mr Toland, who took over as DAA chief executive this year, “to give him an opportunity to put his proposals to us”.

This year, the airline opened seven new bases in Croatia, Greece, Poland, Morocco and the Netherlands this year, and more than 200 more routes.


Modest yields
It said yesterday that forward bookings from these were ahead of expectations, albeit at modest yields per passenger, as rivals continue to cut short-haul capacity.

“Our new route teams continue to handle more growth opportunities than our current fleet expansion allows,” it said.

“Significant opportunities are opening up in Germany, Scandinavia and central Europe in particular, where Air Berlin, SAS and LOT continue to restructure.”


Spanish talks
The company also confirmed that it was in talks with Spanish airport operator Aena. Last week, Mr O'Leary said Ryanair was in negotiations regarding adding seven routes in Spain.

The airline recently announced that it had agreed to buy 175 new craft from Boeing. Shareholders will have an opportunity to vote on the deal at an extraordinary general meeting in June.

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas