Ryanair to cut 1 in 3 of its Shannon staff

AIRLINE COSTS:RYANAIR ANNOUNCED this week that it will reduce its aircraft numbers, routes, flights and traffic to and from Shannon from March 30th, and a third of its jobs at Shannon will go. CEO Michael O'Leary blamed the imminent €10 travel tax, which can exceed Ryanair fares, for "devastating forward bookings at Shannon".

Meanwhile, Dublin Airport Authority (DAA) rubbished Ryanair’s claim that the pricing structure at its airport has sent passenger numbers into “freefall”. Last week Ryanair called on DAA to cut its charges by 30 per cent in order to boost numbers using the airport.

The airline claimed the move was needed to reverse price increases imposed on airlines and passengers over the past three years. Parking costs, check-in-desk costs and “treble charging at kiosks” were to blame, according to Ryanair.

The airline predicted that traffic would fall further from April 1st, when the Government’s €10 travel tax is introduced.

A DAA spokesman told The Irish Times that Dublin airport has the lowest passenger charges of any major airport in Europe and that traffic at Dublin Airport has “outperformed the European average last year”, as passenger numbers increased by 1 per cent, to 23.5 million. Overall, European air traffic fell by 2.6 per cent during 2008, according to the International Air Transport Association.

Ryanair has drawn over-charging complaints of its own from European airports because of its new rule limiting passengers to one 10kg carry-on bag, including duty free, or else face an additional €30 charge.

Airports Council International says airlines “need to appreciate” airports make at least half their income from retail sales and that this allows them to charge below-cost landing fees.