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Old 27th Aug 2008, 15:26
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That represents a lot of lost revenue for Cork Airport.

If 10% of the pax are dropped off it's 46000€ in short term car parking fees alone. If 50% park for 2 days it adds another 2 700 000€ down the drain and that's before the reduction in sales in the terminal.
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Old 27th Aug 2008, 17:51
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The full article
Ryanair to close two Cork routes

From irishtimes.com

17:27

Wednesday, 27th August, 2008

Ryanair said today it is to close two of the seven routes it operates from Cork airport from the end of October following what it claimed was a 20 per cent increase in charges imposed on the routes.



However, Cork Airport rejected Ryanair's claim and said the airline had, in fact, reneged on its commitment to a discount scheme that operates on a sliding scale.
Ryanair's daily flight from Cork to East Midlands will end on October 2nd while the daily service to Glasgow (Prestwick) will close two days later.
The route cancellations are expected to result in a loss of 100,000 passengers at Cork this winter, equivalent to a 6 per cent drop in traffic using Cork Airport.
Ryanair said the decline in passenger traffic will result in up to 200 local jobs being lost.
“We regret that we have to close these two daily routes to/from Cork. However, a 20 per cent increase in airport charges on these routes reduces our ability to offer really low fares at a time of higher oil prices and these higher costs will make these two new routes loss-making this winter," said Ryanair chief executive Michael O’Leary.
“The loss of these flights, 200,000 passengers, €20,000,000 in tourism revenue and 200 jobs could have been avoided if Cork Airport had agreed to continue the current low cost agreement on these routes. However, Ryanair can not and will not absorb a 20 per cent increase in costs just to keep loss making routes open at a high cost airport like Cork,” he added.
Rejecting Ryanair's claims, Cork Airport Authority said in a statement: "All airlines are eligible to apply for route support through the Route Support Scheme when introducing new destinations."
"The scheme operates over a five-year period and is based on a sliding scale with a 100 per cent discount in
year one. In the second year of operation, the discount moves to 80 per cent and so on over the five year period of the scheme. The purpose of the sliding scale is to facilitate development of new routes at start-up.
"Having availed of the 100 per cent discount provided by the Route Support Scheme on its East Midlands and Glasgow Prestwick services since December 2007, Ryanair has today reneged on its commitment to the Route Support Scheme."
The airport body said this scheme was "a fully transparent system available to all airlines in order to support and facilitate route development".
Cork aren't raiseing fee's by 20% it's part of a 5 year deal , year 1 free, year 2 20% of the normal rate etc....
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Old 27th Aug 2008, 19:56
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If thats all Ryanair can do for Cork airport they might be better off without them in the longer term it seems to be their usual bully boy tactics which they have already tried in Dublin and lost.I hope the CAA attract some new services in spite of Ryanair's Bull**** press reports.
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Old 28th Aug 2008, 09:20
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Market forces: supply and demand etc.

If Cork wants services and therefore passengers, revenue and jobs - not just at the airport but within the local economy - they have to compete with all the other European airports who are desperate for Ryanair services.

The aircraft will be deployed on routes where the airport authority has a more enlightened perspective and can see the benefits of fiscal support.

Thatcherism in action
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Old 28th Aug 2008, 09:42
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In some respects, Ryanair are really pathetic.
When they started the two routes from Cork, they knew the rules.
Now, like a spoilt child, they are sulking.
MOL's figures for passengers, loss etc. beggar belief.
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Old 28th Aug 2008, 10:05
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Would it be that beneficial to offer Ryanair a great package?

Shannon did that and now it has no short-haul flights by any airline other than Ryanair, apart from a single Air France service. Quite frankly, Ryanair has Shannon Airport by the balls.

Cork treats all carriers equally and gets served by 7 short-haul airlines other than Ryanair.
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Old 28th Aug 2008, 11:50
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bmi rejected Shannon's approach for a service to LHR because the LHR slot was more valuable to them for other services. Market forces, nothing to do with Ryanair.

Aer Lingus pulled out in a hissy fit because they had to continue to operate their long haul through Shannon when they wanted to drop it completely. Nothing to do with Ryanair.

FlyBe pulled off the Shannon - BHX route long time before Ryanair set up the BHX base. Nothing to do with Ryanair.
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Old 28th Aug 2008, 11:53
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Ryanair

Heard Cawley on 96FM this morning trying to explain this decision to his fellow Corkonians.

Did they not read the new routes incentive scheme before they signed up for the new Cork Routes? Zero Charges in year one, 80 discount in year 2. It couldn't be clearer.

Ryanair would want to realise that Cork is not Shannon. It's run like a business and the management there are not going to be bullied by any one carrier.

The Aerlingus operation there is first class and would probably be expanded if Ryanair decided to pull out of Cork completely.

Aer Arann, BMI Baby, Wizz and Jet 2 and dare I say it Easy Jet are all capable of filling the void should Ryanair decide to leave.
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Old 28th Aug 2008, 15:07
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840 you are misinformed, SNN-CDG is thrice daily on weekends and twice daily on weekdays

What are these seven carriers?

Aer Lingus, Ryanair, Wizzair, Jet2, Aer Arann and BMIbaby, that makes five. Skyeurope are pulling out
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Old 28th Aug 2008, 15:19
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What are these seven carriers?

Aer Lingus, Ryanair, Wizzair, Jet2, Aer Arann and BMIbaby, that makes five. Skyeurope are pulling out
Air Southwest fly from Cork to Plymouth and Newquay
Did they not read the new routes incentive scheme before they signed up for the new Cork Routes? Zero Charges in year one, 80 discount in year 2. It couldn't be clearer.
MOL seems to have selective amnesia. The rules of the Route Support Scheme are up on the Cork Airport Website. Perhaps MOL should read them!
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Old 28th Aug 2008, 15:46
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And the RSS isn't negotiable given the downturn in the economy and the increase in fuel prices???
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Old 28th Aug 2008, 15:57
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Playing devil's advocate here but perhaps MOL did know all about the rules of the route support scheme. This could be the perfect opportunity for him to shuffle a few routes around and get zero charges on the first year of a new route. For example the EMA route could be switched to LBA. Low cost airlines are going to look at every possible way to avoid costs especially in the current economic climate. The trouble with sliding scale route incentive schemes is that they become less attractive as time goes by. It all depends on the exact agreement signed by both parties. Although it is annoying it is completely understandable what RYR are doing and of course the outcry by the two apparently discruntled parties (RYR/Cork airport) has just added publicity.

Just my thoughts,

Leeds App.
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Old 28th Aug 2008, 16:03
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I'd say the relationship between Ryanair and Cork Airport, if not indeed, many Cork people is getting pretty near now to being irrideemable. Maybe, the time is approaching that the kindest thing to do would be to invite Ryanair to quit all their operations in Cork in order that the airline may better plough it's furrow with an airport partner that it would find more amenable?
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Old 28th Aug 2008, 16:44
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It probably sounds much better if one says: 'we pull out because the airport authoritity has raised the charges and didn't want to re-negotiate them' and much harder to say 'we quit because even the 80% discount is not enough to keep the route profitable'. The reason? It's just another example of the undesired consequences of the limits of well-known point-to-point system. Good for big centres, not efficient for less-populated areas. Cork (as many other FR airports) has too small population to support more than just a few most important p2p routes. The further growth of a low-cost traffic can be sustained only by the acceptance of some connecting flights. It should finally be understood, the earlier the better.
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Old 28th Aug 2008, 17:14
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Ork Ema Pik

Looks as if FR are losing the PR battle on this one as journalist have been looking behind the headlines and asking the hard questions all day.

It's a pity the CAA doesn't put forward a spokesman with their side of the story.

The fact that EI and BMI didn't budge from ORK BHX and RE stayed on ORK EDI must also have affected FR's performance on the two routes.

A change to see Ryanair blinking first!
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Old 28th Aug 2008, 20:36
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THREE YEARS in employment and a command at 27???? What the F***????? Surely that can't be right (!)

Glasgow Prestwick Airport
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Old 28th Aug 2008, 21:56
  #2477 (permalink)  
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Ryanair at Cork

So MOL in the interest of Ryanair for profit and loss sake and some publicity decided to axe PIK and EMA because he wasnt getting an extention of the favourable terms of ZERO in year 1. Well if he is so concerned about his airline and wants to act in a prudent manner and in the interest of shareholders why does he not axe Dublin/Cork? No he will continue to allow the airline to lose millions on this sector in the name of putting Aer Arann out of business. It's not right and there should be some intervention by competition authority. The government will be looking back in a few years when we have 1 airline serving Ireland and we will only have 1 airline as Ryanair will own everything. This is not good.

I hope Cork Airport dont bow down to MOLs demands,and what's more lets hope Aer Arann open a daily Glasgow Cork route we then would see where Ryanair would stand then on the subject...
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Old 28th Aug 2008, 22:53
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FR PR

Don't think CAA are losing the PR battle.

It has come across quite clearly on the various threads here and in the press that FR's allegation for the withdrawal of routes because of an increase of 20% in airport charges was false. Rather FR had not read the big print of ORK's route incentive scheme.

I note from the local press in Cork today that FR attempted to change tack and tried to lay the blame not on ORK's route incentive scheme but on the fact that ORK was not independent from the DAA and therefore not free to set its own airport charges.

Not sure about the soundness of this argument. In any event this was a belated attempt to remedy a PR blunder in Cork.
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Old 28th Aug 2008, 22:57
  #2479 (permalink)  
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Have FR paid the BAA bill yet?
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Old 29th Aug 2008, 10:38
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Market forces: supply and demand etc.

If Cork wants services and therefore passengers, revenue and jobs - not just at the airport but within the local economy - they have to compete with all the other European airports who are desperate for Ryanair services.

The aircraft will be deployed on routes where the airport authority has a more enlightened perspective and can see the benefits of fiscal support.

Thatcherism in action
Another way to look at is that there is only one Cork airport, but LCC's are ten a penny. If Ryanair can't provide the service another airline will.
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