RYANAIR is shelving all expansion plans for Ireland following the Government's decision not to agree to develop Baldonnel as a second commercial airport for Dublin. Dr Tony Ryan, the airline's chairman, wanted to move Ryanair's operations to Baldonnel because he claims airport charges at Dublin Airport are too high.
The Minister for Transport, Mr Lowry, has written to Dr Ryan saying that, having consulted with his Cabinet colleagues, he has decided that the Baldonnel project would not be in the interjests of the aviation sector or the economy generally. He said the experience of cities with two airports did not support the case for Baldonnel.
The need for more than one airport was generally created by traffic or environmental constraints at the existing locations. "Reliever airports have in general suffered years of losses and have required financial support for extended periods," Mr Lowry said.
Dr Ryan said he was disappointed with the decision.
"Ryanair must now reassess totally its future plans and its Dublin base," he said.
"In the short term, all expansion out of Ireland is being shelved and other fundamental strategies are being reviewed. The company's new service between London and Glasgow is perhaps a template for the airline's future development."
Ryanair has threatened before to move its operational base from Dublin to Stansted Airport in London. Dr Ryan contends that airport charges at Dublin are exorbitant. When announcing his plans for Baldonnel last summer, he said Ryanair would be able to offer return fares to Continental cities for as little as £80 if they were not obliged to use Dublin Airport.
Dr Ryan claimed yesterday "Aer Rianta continues to claim that its charges are among the lowest in Europe. This is nonsense. Dublin Airport is Ryanair's most expensive airport".
Mr Lowry said the alleged high cost base at the airport was not borne out by "recent independent studies".