Madam, - In your edition of February 6th, Alan Dukes claims that the Charleroi issue has been disposed of sensibly and that we should "leave well enough alone". With respect, I beg to differ.
Commissioner Palaccio presents no evidence of any breach of the prudent private investor rule in this case. In fact, Alan Dukes doubts that the opinion of any private airport investor was sought. Since the Commissioner's case is that no private investor would have operated the Charleroi/Ryanair deal, her failure to produce any evidence on private sector airports is crucial.
She presents no financial data on the airport to allow us to contrast the empty Charleroi then with the busy one now.
In the era of non-competing airlines and non-competing airports Charleroi was empty for well over half a century. The Commission presents no evidence that any airline before or since Ryanair sought to develop Charleroi. Competing airports and airlines are essential to successful deregulation.
Given the anti-competitive control of hub airports by high cost airlines through the grandfather rights which has not been addressed in this decision, low-cost airlines depend on low-cost airports in order to access the market to the huge benefit of the travelling public. In this case the Dublin-Brussels fare of £650 has been reduced to an average of €80 by the Ryanair-Charleroi competition.
Fining low cost airlines and airports €4 million for charging too little has echoes of the 1984 Irish legislation to fine those selling airline tickets too cheaply £100,000, while imprisoning them for two years and forfeiting their travel agent licences. That legislation was derailed by a rare parliamentary revolt and a government change of heart.
The 1986 airline deregulation here became a world model for lower air fares, increased business and tourism growth to six million visitors in a sector stuck at two million for twenty years.
The 1984 legislation was taken at the behest of a high cost airline which now competes as a very good low cost airline to the national benefit. The Charleroi case was taken anonymously by a rival high cost airport. Six commissioners including the Competition Commissioner voted against the Ryanair-Charleroi fine.
The Charleroi decision is a repeat of 1984 with the fine increased from £100,000 to €4 million. It also must be reversed. "Leave well enough alone? Never! - Yours, etc.,
SEAN D.BARRETT, Department of Economics, Trinity College, Dublin 2.