Brussels Airport

Rail link plans fall through but demand remains high

For the air transport industry to remain competitive with what is an increasingly ‘preferred’ mode of transport in the EU and beyond – rail – the air-rail link is, ironically, a saviour. In two recent cases such links have been postponed or called into question by a bidder, but there are still plenty of schemes in the pipeline, with Europe leading the way in this field.

The scheme that has been postponed is one at Dublin, Ireland, where the Transport Minister confirmed early in Nov-2011 that investment in transport infrastructure generally will be scaled back significantly over the next five years. Overall spending on transport capital will fall by almost 50% from EUR1.5 billion in 2011 to EUR0.8 billion in 2016. As part of this reduction, the Government will postpone the new rail link to Dublin International Airport. Prime Minister Enda Kenny stated, “We cannot afford to do all that we want to do. This plan is based on what the country can afford. We face a large budget deficit, dependent on support funding and operate in a very challenging international environment."

Air Malta troubles worsen as unions flex muscle and LCCs grow

Air Malta’s troubles have become more acute as the struggling carrier’s unions increase their opposition to large-scale redundancies. Prime Minister Lawrence Gonzi has stated the present situation is increasingly worrying, particularly in light of the EUR77 million the government has poured into the airline since Jun-2011.

Ryanair in the dock

Ryanair may have to repay millions of euros as Germany’s highest court ruled fees it has received to operate from airports may amount to subsidies in breach of EU competition rules. Lufthansa and airberlin have been awarded the right to pursue legal action accordingly. Together with the other difficulties the Irish airline faces in Germany could this be the beginning of the end for its operations there? Or might there be even more significant outcomes?