DAA Statement Regarding Ryanair Capacity Cuts
July 30 2009
The Dublin Airport Authority (DAA) notes Ryanair’s statement in relation to
its planned capacity cuts from Ireland this winter. The DAA contends that Ryanair’s decision
is purely related to the current economic downturn.
The DAA is always disappointed when an airline customer decides for whatever
reason to reduce capacity from one of its three airports. The DAA expects
Ryanair will be one of the first airlines to expand its services out of Dublin
Airport when economic conditions improve. 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.
Last summer (15 July 2008), 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:
• Ryanair’s baggage check-in charge has increased by 600% since 2006
•
The charge for using a credit card to book a Ryanair flight has increased by
285% since 2006
• The cost of changing a Ryanair flight booking has
increased by 66% since 2006
• 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.
Ryanair’s Top Ten Routes 09
Dublin – Stansted
Dublin -
Gatwick
Stansted - Rome
Dublin - Manchester
Bergamo - Rome
Stansted
- Bergamo
Prestwick - Stansted
Dublin - Birmingham
Dublin -
Luton
Dublin - Cork
For further information contact:
Paul O’Kane, Tel 353 1 8141897, 353 86 6090221
Siobhan Moore,
Tel 353 1 8144108, 353 87 2710065
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