Govt Removal of Regional Airport Subsidies Right Policy Says Ryanair
12-Jun-2011 Ryanair, Ireland’s largest airline, today (12th June) said that the new Govt policy to axe subsidies (capital and operating) to Galway and Sligo Airports is the correct policy for Irish aviation and should be supplemented by the withdrawal of all PSO subsidies which have supported uneconomic and unviable domestic routes to Dublin which can no longer be justified given the recent improvements in motorway and train connections to the Capital.
Ryanair pointed out that over €80m in taxpayers' money has been wasted on PSO subsidies for Galway and Sligo Airports alone since 2002, with an average subsidy of €55 per passenger for the 80 daily return passengers on the Galway - Dublin route, and €87 per passenger for less than 50 daily return passengers on the Sligo - Dublin route. Ryanair believes that Govt waste on this scale is impossible to justify at a time of deep recession and widespread cuts in spending for hospitals, schools and pensions.
PSO SUBS FOR GALWAY & SLIGO 2002-2011
|
Route
|
Subs
|
Pax p.a.
|
Subsidy per pax 2008-11
|
|
Galway-Dub
|
€35.3m
|
60,000
|
€55
|
|
€46.8m
|
65,000
|
€87
|
|
|
Total
|
€82.1m
|
125,000
|
Ryanair's Stephen McNamara said:
"Ryanair fully supports the Govt decision to axe capital and operating subsidies to Galway and Sligo Airports. Indeed we would go further and axe the PSO subsidies to Donegal and Kerry as well despite the fact that we have received the subsidies on the Dublin-Kerry route for the past three years. Ryanair stopped receiving the PSO on Dublin - Kerry from Nov 2010 and continues to operate the route successfully today without any subsidy. Analysis of the enormous PSO subsidies on these routes over the past decade proves that there is no significant demand for domestic air routes between these regions and Dublin, as thousands of consumers have voted with their feet and switched to car, coach or train services on the significantly improved motorways and rail lines from these regions.
Ryanair does not believe the scare stories that any regional airports will close simply because uneconomic subsidies are removed. Instead these airports can and will become commercially viable by offering much lower costs and developing more international services from Galway and Sligo to London, other UK provincial destinations and the continent. The new Govt policy to axe subsidies is therefore the correct one and these scarce funds can now be allocated to more needy causes such as pensions, schools and hospitals."