Ryanair wants landing charges abolished

AIR TRAVEL:RYANAIR IS seeking a drastic reduction and even abolition of airport charges – in addition to the abolition of the travel tax – in return for flying an additional five million passengers to Ireland over the next five years.

Minister for Tourism Leo Varadkar last week announced his intention to abolish the travel tax for airline passengers from July, provided airlines increase their traffic volumes to and from Ireland. Mr Varadkar, who has written to the 30 airlines flying into this country, said some had responded positively but one leading airline was “looking for more”. He declined to identify this airline but it is understood to be Ryanair.

A Ryanair spokesman said the airline had submitted a proposal to the Government for additional flights, which had the potential to create 5,000 direct jobs and 10,000 indirect jobs in tourism-related activities. The proposal differs from a previous proposal rejected by the last government in that it envisages increased traffic in Dublin, Cork and Shannon airports, rather than being focused mainly on Dublin, he said.

The spokesman declined to elaborate on the details of the Ryanair proposal but stressed the airline’s view that charges in Irish airports were “off the scale”. Charges in some overseas airports had been abolished, he pointed out.

Airlines have already allocated their planes for this summer so the full benefit of any increase in flights would not be felt until next year. The abolition of the travel tax will cost the Exchequer €15m this year, €90m next year and €105m the year after.

The €10 travel tax was first introduced in 2009 but was reduced to €3 in the last Budget following intense lobbying.

Mr Varadkar acknowledged that Ryanair, because of its size, was key to the Government’s plans to increase air traffic and boost tourism. He also expressed concern about the slump in traffic through Shannon, where passenger numbers are down 18 per cent so far this year. This is in spite of the fact that traffic volumes in Europe in spring 2010 were greatly depressed by the ash cloud from an Icelandic volcano. Traffic in Dublin airport is up 6 per cent, that’s additional 300,000 passengers, but numbers fell 8 per cent in Cork.

Mr Varadkar said he would like to separate ownership of Dublin, Cork and Shannon airports but it was very difficult to see this happening because of debt issues. The Minister said he was expecting a major tourism boost from the forthcoming visits of Queen Elizabeth and US President Barack Obama. In addition, some 40,000 Portuguese soccer fans are expected in Dublin next Wednesday for the final of the Europa League in the Aviva Stadium.