Ryanair received an average of 60 cents per person for their 34.7 million passengers carried in 2011, whilst Air Nostrum received and average of €3 per person for the 8 million passengers they carried in the same period.
Well 60c is diddly squat, Spanish APD (eqv) is still around £5, so it is the usual case of govts giving with one hand and taking with the other
I don't think this is the biggest problem with Spanish aviation either. If these routes are bringing people in to spend money, there is an argument to interfere with the market.
On the other hand, building white elephant airports that research should have shown before hand were just going to lay empty, is a different story.
Foolish or not surely you would think the subsidies must surely now cease, although they may well argue that they are a necessity to keep the tourist trade alive, which after agriculture, is their biggest earner and they cant afford to lose. Their largest car rental company AurigaCrown has just collapsed.
All will depend on how the moneymarkets and the Gauleiters in Brussels view it in the months to come...No doubt they will be getting some more wise words from Mr O`Leary in due course
The local press report that the main reason Spanair collapsed when it did about 10 days ago was because the attempts to involve Qatar Airways in it foundered because Qatar feared that Brussels would make them pay back multi million pound financing from the Catalan government.
Incidentally, Spanair don't get a mention in the original article cited. Which does make the figures very suspect indeed. As being far far too low if they are only for money from "Madrid."
Why does nobody in Brussels appear to pay a blind bit of notice to the total of 100m € subsidy to Ryanair mentioned in this article ?
¿ Time to wake up in Belgium ?
Last edited by BigFrank; 6th Feb 2012 at 22:40.
Reason: Add new para 2
Had an email from the car brokers `DoYouSpain` to this effect and found the details on the `eyeonspain` website as well as a thread on Manilva Life under general info on the forum..
Apparantly, unlike here, clsoures are handled slowly over a period of time but they are closing at the end of this month so I`m led to beleive. They have no cars available at La Linea or Malaga after this time.
Not long ago Spanish tourist resorts were on a big winner charging airlines a nice wedge in landing fees and at the same time the airlines were bringing in the main source of income ie tourists. then a long came Mol who said hang on your charging me to land my planes and we are bringing you your main source of income. i will charge you so much per passenger from now on.And for all island destinations like the canary's they are finished without flights and the airlines know it.Pay per Passenger in one form or another is hear to stay.
Almost half of all Spanish airline subsides paid over the last 5 years have been made to Ryanair, who recieved just over €100 million of the €250 million total paid out.
Hardly "diddly squat"
I am not a socialist at all..But with Spain relying on tourism, I think these payments where a shrewd Investment.
@Big Frank..Pity the UK firm did not put up 2 fingers at Brussels..
I am going to Spain twice this year and like the majority of Brits don't care about subsidies of it helps flight to heep taking us there.
Last edited by Ernest Lanc's; 7th Feb 2012 at 15:16.
Not long ago Spanish tourist resorts were on a big winner charging airlines a nice wedge in landing fees and at the same time the airlines were bringing in the main source of income ie tourists. then a long came Mol who said hang on your charging me to land my planes and we are bringing you your main source of income. i will charge you so much per passenger from now on.And for all island destinations like the canary's they are finished without flights and the airlines know it.Pay per Passenger in one form or another is hear to stay.
Well IF the figures are to be believed the £100m and the 60 cents per passenger i work out as FR delivering 165 Million people in 5 years which is not the case yet but will be over next 4/5.
So 165Million SLF with an assumed spend of circa €300 on accommodation / car hire etc per person gives you a €50 Billion over 5 years with it all being spent in the country and on services / local jobs.
Spanish return is for every 60 cent it spends and given Spanish VAT is 8% then even if tourist only spends €10 on a meal the state is ahead.
How much would Spain offer in grants to an industrial company to come in and set up offering 2000 jobs in a poor region ?
Have I got this right. Are you claiming there were no flights to either airport until Ryanair arrived ???
¿ And are you also claiming that MOL single-handedly built both airports, acting as navvy, as ganger and as architect and pouring all the re-inforced concrete himself ?
That would be a first. A boy from Clongowes Wood doing a hand's turn on a building site. Still less building two multi million pound installations single handedly.
