Ryanair won’t axe Shannon routes for now

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Ryanair won’t axe Shannon routes for now

Tuesday, 02 September 2008 14:42

FEARS that low-cost airline, Ryanair might axe routes at Shannon have been calmed, with a spokesman for the Shannon board saying they hope to do business with the O’Leary outfit “well into the future”.
Ryanair has warned that if the Shannon Airport Authority (SAA) changes the costs on its five year deal at Shannon, there will be repercussions.
But yesterday, a spokesman for the board said that the Ryanair deal is doing well, with the airline performing beyond expectations.
“We have a very strong and positive working relationship with Ryanair. They are valued customers and we look forward to this continuing to be the case well into the future,” the spokesman said.
According to Ryanair’s deputy chief executive, Michael Cawley the airline has a fixed cost deal at Shannon and it is working.
He added however, “If by any chance there is an attempt by the Shannon Airport Authority (SAA) – which we don’t anticipate – to change those costs for sure will there will be repercussions.”
Mr Cawley said, “We will honour our deal in Shannon so as long as Shannon honours their deal with us.”
Mr Cawley was making his comments in the wake of Ryanair pulling two routes out of Cork Airport to the UK arising from a dispute with the Cork Airport Authority (CAA) over airport costs.
Mr Cawley said, “Unlike Cork, Shannon made an independent decision in 2004 to do a five year long term low cost deal with Ryanair. We have delivered up to 1.7 million to the end of April at Shannon and are on target to do 1.9 million to the end of April next year.”
Cllr Patricia McCarthy (Ind) said yesterday, “I would expect Shannon to adhere to the deal.”
Cllr McCarthy said that the current deal will expire in 2010. She said, “Ryanair has been good to Shannon and Shannon has been very good to Ryanair.
She added, “Shannon has been made cost competitive with the loss of 250 jobs and in the negotiations, but sides will know how far they can go and the facilities provided at Shannon Airport have to be paid for.”
Earlier this year, Ryanair warned that its multi-million euro deal with the Shannon Airport Authority (SAA) may not be renewed if the airport does not further reduce its cost base.
The maintenance of the five year deal – worth €300 million to the west of Ireland according to the Shannon Airport Authority (SAA) – is key to the airport’s survival and is up for renewal in two years time.
Shannon Airport has become increasingly reliant on Ryanair since it established its base at Shannon in 2005 with the airline now flying to 32 destinations and accounting for over two million or two-thirds of passengers at Shannon.
Underlining Ryanair’s dominance at Shannon, the company has recently erected a ‘Welcome to Ryanair Country’ billboard at the entrance to the airport.

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