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Ryanair today announced 20% flight cuts at its Dublin base for the coming winter schedule (09/10). Compared to winter 2008/09, when Ryanair based 18 aircraft, and operated 1,200 weekly flights, Ryanair’s Dublin schedule this winter will be cut by 22% to 14 based aircraft with 20% fewer flights at less than 1,000 each week. Ryanair estimates that its Dublin traffic this winter will decline by a further 250,000 passengers compared to last winter’s figures, as Dublin Airport loses over 2m passengers overall in 2009.
Ryanair’s decision to cut based aircraft flights at Dublin Airport is for the following reasons:
a) Dublin is one of Ryanair’s two most expensive base airports (Stansted is the other).
b) Costs at the "DAA (Dublin airport Authority) monopoly continue" to increase at above inflation rates.
c) The Aviation Regulator "continues to rubber stamp unjustified Dublin Airport cost increases while costs at most other UK and European airports are falling."
d) The Irish Government's €10 tourist tax makes Ireland an uncompetitive tourist destination at a time when other European Governments have scrapped their tourist taxes.
e) Traffic at Dublin airport is collapsing (down 11% or 1m fewer pax in the first half of 2009) under the weight of these high airport fees and this stupid tourist tax.
The airline says the fact that the DAA monopoly are proposing further price increases at a time when most other UK and European airports are reducing their prices, highlights the damage being done to Irish aviation and tourism by this high cost, inefficient, badly run airport monopoly. Ryanair has repeatedly called on the Government to scrap the €10 tourist tax which has had an equally devastating impact on Irish tourism. Ireland cannot grow tourism by taxing tourists. The Belgian and Dutch Governments have recently scrapped their tourist taxes, and the Spanish and Greek Governments have reduced their airport fees in some cases to zero this winter in order to reverse traffic declines.
Ryanair’s Michael O’Leary said today: “In winter 2007 Ryanair had 22 aircraft based at Dublin Airport. Last year we reduced this by 20% to 18 aircraft and this year we’re cutting it by a further 20% to just 14 aircraft. The high and rising costs at Dublin Airport, combined with an insanely stupid €10 tourist tax, are devastating tourism here in Ireland. These cuts come just one day after Ryanair announced 39 new routes to the Canaries this Winter where the Spanish Government has reduced airport fees to zero. Last week Ryanair announced 11 new routes to Oslo airports this winter where again airport fees have been substantially reduced.
“The response of the Government owned DAA monopoly to this 11% traffic collapse is to seek yet further price increases! The incompetent Irish Aviation Regulator has already proposed that Dublin airport charges for 2010 onwards will be “18% higher” than they would be if the DAA’s traffic was not declining. Sadly the DAA gets rewarded by the regulator with price increases for its abject failure to grow and stimulate traffic.
“The Irish Government has compounded this tourism collapse by inflicting an insanely stupid €10 tourist tax on passengers at Irish airports at a time when the Belgian and Dutch Governments have scrapped their tourist taxes and the Spanish and Greek Governments have reduced their airport fees, in some cases to zero. Ryanair again calls on the Irish Government to scrap this stupid €10 tourist tax before even further damage is done to Irish tourism this winter.”
Paul O'Kane of the DAA commented: "It is not clear what proportion of these cuts will actually take place. Recent experience shows that Ryanair announces large cuts in capacity to the media, but subsequently reduces capacity by a much smaller amount in reality.
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Ryanair’s Top Ten Routes 09 |
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Dublin – Stansted |
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Dublin - Gatwick |
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Stansted - Rome |
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Dublin - Manchester |
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Bergamo - Rome |
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Stansted - Bergamo |
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Prestwick - Stansted |
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Dublin - Birmingham |
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Dublin - Luton |
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Dublin - Cork |
Last summer, Ryanair claimed it would cut weekly flights from Dublin by 12% over the winter of 2008-2009, whereas the actual capacity cut was 4.2%. Ryanair announced that it would carry 500,000 fewer passengers from Dublin last winter. But in actual fact, the reduction in Ryanair passengers last winter was 150,000. These reductions were also due to the economic downturn.
In July last year, Ryanair claimed that its passenger traffic at Stansted would drop by 900,000 passengers in the winter of 2008-09, but according to BAA, which operates Stansted Airport, the reduction in passenger numbers was in reality about 400,000.
The DAA maintains that Ryanair is cutting capacity from Ireland and Britain because it has previously warned investors that declining economic growth in Ireland and the UK is “likely to impact demand for air travel”.
Independent research proves that passenger charges at Dublin Airport are among the lowest of any comparable European airport. Dublin Airport’s passenger charges have fallen by 30% in real terms over the past 20 years.
Studies by Airports Council International (ACI), the Commission for Aviation Regulation and others confirm that passenger charges at Dublin Airport are amongst the lowest of any major airport in Europe.
Airport charges at Dublin Airport are regulated and the regulator has sanctioned some increases over the past three years. During the same three-year period, according to recent independently verified figures, Ryanair’s own charges have exploded:
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Ryanair’s baggage check-in charge has increased by 600% since 2006
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The charge for using a credit card to book a Ryanair flight has increased by 285% since 2006
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The cost of changing a Ryanair flight booking has increased by 66% since 2006
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The cost of carrying sports equipment on a Ryanair flight has increased by 97% since 2006
Ryanair claims that its charges are discretionary; however passengers have no choice but to pay its online check-in charge. Irish consumers also have to pay Ryanair’s credit card charge since Visa does not offer its Electron card product in Ireland.
Dublin Airport is, and has been, good for Ryanair’s business over the past 20 years and the profits made from its Dublin routes have been a key factor in the airline’s expansion.
Ryanair has confirmed Dublin Airport’s pivotal role many times in stock exchange documents. Services to Dublin Airport provided six of Ryanair’s 10 largest routes, including its two largest routes, in the year to the end of March 2009, according to Ryanair’s latest annual report, published earlier this week. Dublin Airport has actually consolidated its position within the Ryanair network over the past 12 months, as last year it accounted for five of Ryanair’s top 10 routes.
Ryanair operated 854 routes at the end of June, while its top 10 routes, all of which provide services to either Dublin or Stansted airports, accounted for 9% of its overall passenger numbers."