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Old 15th Oct 2001, 15:08
  #31 (permalink)  
The Guvnor
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Das Pferd - I don't think that Idunno is having a go or anything - the discussion was deviated somewhat by westjet and I was debating two different points. However, Idunno is quite right - the subject under discussion is FR and Aer Rianta.

I suspect, however, that mjenkinsblackdog may have rabies and might have to be put down

Back to the subject at hand...

Yep, MO'L does use rather 'Bransonesque' PR tactics. Aer Rianta offer a deal to everyone - even FR - that instead of the charges I provided above they have a 100% discount (ie free) on landing and passenger charges on new routes. This offer was originally for three years; I understand it's been extended to four.

However, the animosity between MO'L and Aer Rianta goes a lot deeper than just charges. They have been long time advocates of a second, non-Aer Rianta terminal at DUB and it looks like they have got their way. It's probable that this terminal will be a joint venture between FR and the McEvaddys.

There are persistent rumours about Aer Rianta being cut lose from the government's apron strings, and if that happens, things could get rather interesting.

Looking at things from Aer Rianta's perspective though, they really don't want the low cost carriers. Sure, they bring in lots of passengers - but as LTN has found with EZY, they end up costing the airport more than the revenue they bring in. In addition, having a low cost carrier on a route is a barrier to entry for a full service airline or a start-up - except of course for other low cost operators (eg the current dogfights going on between EZY, FR and GO).

When I was at the Routes conference in Dublin a few weeks ago, a number of airports made it very clear that they would not welcome the likes of FR.

FR - and its ilk - needs to grow at around 25% per annum to keep its investors happy - and of course the bigger it gets the bigger that 25% leap has to be. Finding viable new routes will be the biggest problem they face.

[ 15 October 2001: Message edited by: The Guvnor ]