Sir, - Your editorial (June 2nd) on Aer Rianta refers. Competition between Ryanair and Aer Lingus has, over the past 12 years dramatically reduced air fares and increased the range of air services available. As a direct result, tourism has boomed and Ireland's economic prosperity has blossomed.
The single greatest threat to this low fare environment is Aer Rianta's failure to reduce its cost base in recent years, or to develop ancillary income which might make up for the disappearance of intra-European duty free. Ryanair has no intention of increasing air fares next year when we will lose our in-flight duty free service. We must absorb these losses and try to fund them from further cost reductions. The airports must do likewise. For Aer Rianta - just beause it is a monopoly - to state that airline charges will increase next year, simply because of duty free is unacceptable. They have had seven years notice, to enable them reduce their costs. Aer Rianta must commit to lower, not higher charges so that low air fares and traffic growth can be maintained.
However there is little point in expecting a monopoly to lower its charges or costs. The only solution is competition. This can be achieved at Dublin Airport by permitting the construction of a second terminal, owned and operated by anybody other than Aer Rianta. The funding for, and interest in, such a project already exists, whether it is the Huntstown Terminal Project, the Ryanair Project or others. Such competition will ensure that low charges are maintained for all airlines using the runways at Dublin Airport and it will also speed up a resolution of the unacceptable terminal congestion at Dublin presently.
State monopolies are past masters at justifying high charges, and cost increases. Aer Rianta's usual response is that its charges at Dublin are "low by international standards". The critical issue for Government and the consumer is, will this monopoly, if it continues, result in higher or lower costs? The answer is obvious - just look at Aer Lingus and Telecom - competition is forcing them to reduce their prices and improve services. Competition at Dublin Airport will lead to reduced charges, lower air fares and rapid improvements in the existing inadequate and congested facilities.
The consumer, the tourism industry (our largest employer) and the economy generally can only benefit from competition at Dublin Airport. Will anybody benefit from maintaining the monopoly? - Yours, etc., Michael O'Leary,
Chief Executive, Ryanair, Dublin Airport, Co Dublin.