eurostar builder
6th Feb 2004, 01:43
IT has been dubbed a "disaster" for consumers and for small-scale airports
like Bournemouth.
Bosses at the budget airline Ryanair are furious at being ordered to repay
around £3 million of the state aid the company received for operating from
Charleroi airport in Belgium.
The airline - which flies from Bournemouth to Dublin, Glasgow Prestwick and
Barcelona Girona - says the decision by the European Commission could put up
fares and hit publicly-owned airports.
Chief executive Michael O'Leary called the decision a "disaster" for
consumers and said the company would appeal to the European Court.
He said: "We have done nothing wrong. We have reduced costs and we are going
to carry on doing so for the benefit of consumers".
The decision was a "meaningless interference in the running of the free
market".
Ryanair passengers in Bournemouth yesterday were not unduly worried about the
impact of the European decision.
Alan Turner, from Poole, said he had read claims that the ruling could put £5
on fares.
He said: "A fiver in today's money is nothing. That's two drinks in this day
and age. It's virtually nothing in my book."
He added: "I think my daughter picked this ticket up for £35 return. That's
cheaper than you can go by ferry."
Local taxpayers do not pay for Bournemouth Airport, but Manchester taxpayers
do. Its parent company, Manchester Airport, is owned by local authorities
around the city.
Ryanair has been important to Bournemouth, accounting for 40 per cent of the
465,000 passengers who used the airport last year. For passengers, the growth
of budget airlines has helped cut air fares by 75 per cent in three years.
Peter Bath, chairman of Bournemouth firm Palmair, has been flying from
Bournemouth since 1958. He says the fact that Ryanair and other budget airlines are
offered far cheaper landing charges is a "cross for us to bear".
He added: "The new approach to the financial side of running an airport is no
longer related to flying activities, ie landing charges, passenger load
supplements and other charges.
"The new approach seems to be that the money is made from the sale of teas,
coffees and other drinks and meals, car park charges and the odd purchase from
the airport shop. With the exception of car park charges it appears to be more
like a motorway service station."
Mr Bath is lavish in his praise of Bournemouth Airport's staff, describing it
as one of the most efficient airports in the country, with security second to
none.
"While the subsidies Ryanair receives are less than they used to be,
subsidies still exist, but presumably it is the citizens of Manchester who are losing
out as they own the airport," he said.
Charleroi's support for Ryanair was sizeable. As well as a 50 per cent
reduction in landing taxes and a landing charge of only one euro per person instead
of the usual 13 euros, the airport paid £350,000 for the accommodation of air
crews and £500,000 towards pilot training.
Some industry insiders are not convinced that the European decision deals a
blow to other low-fare operators.
They say the law will still allow the kind of discounts which can fairly
attract a budget airline, but not the sort of wholesale subsidy which can only be
handed out with state backing.
Ryanair's competitor Flybe, which flies from Southampton, believes this
week's decision was based on "a set of circumstances specific to Ryanair".
Mike Rutter, marketing and sales director, said: "Only by safeguarding a
level playing field can the low cost sector continue to pass on exceptional value
to customers and stimulate the best possible commercial benefits for regions.
"All airlines negotiate cost deals with airports and we, along with other low
cost carriers, remain committed to the drastically reduced airport charges
we've worked hard to push through."
like Bournemouth.
Bosses at the budget airline Ryanair are furious at being ordered to repay
around £3 million of the state aid the company received for operating from
Charleroi airport in Belgium.
The airline - which flies from Bournemouth to Dublin, Glasgow Prestwick and
Barcelona Girona - says the decision by the European Commission could put up
fares and hit publicly-owned airports.
Chief executive Michael O'Leary called the decision a "disaster" for
consumers and said the company would appeal to the European Court.
He said: "We have done nothing wrong. We have reduced costs and we are going
to carry on doing so for the benefit of consumers".
The decision was a "meaningless interference in the running of the free
market".
Ryanair passengers in Bournemouth yesterday were not unduly worried about the
impact of the European decision.
Alan Turner, from Poole, said he had read claims that the ruling could put £5
on fares.
He said: "A fiver in today's money is nothing. That's two drinks in this day
and age. It's virtually nothing in my book."
He added: "I think my daughter picked this ticket up for £35 return. That's
cheaper than you can go by ferry."
Local taxpayers do not pay for Bournemouth Airport, but Manchester taxpayers
do. Its parent company, Manchester Airport, is owned by local authorities
around the city.
Ryanair has been important to Bournemouth, accounting for 40 per cent of the
465,000 passengers who used the airport last year. For passengers, the growth
of budget airlines has helped cut air fares by 75 per cent in three years.
Peter Bath, chairman of Bournemouth firm Palmair, has been flying from
Bournemouth since 1958. He says the fact that Ryanair and other budget airlines are
offered far cheaper landing charges is a "cross for us to bear".
He added: "The new approach to the financial side of running an airport is no
longer related to flying activities, ie landing charges, passenger load
supplements and other charges.
"The new approach seems to be that the money is made from the sale of teas,
coffees and other drinks and meals, car park charges and the odd purchase from
the airport shop. With the exception of car park charges it appears to be more
like a motorway service station."
Mr Bath is lavish in his praise of Bournemouth Airport's staff, describing it
as one of the most efficient airports in the country, with security second to
none.
"While the subsidies Ryanair receives are less than they used to be,
subsidies still exist, but presumably it is the citizens of Manchester who are losing
out as they own the airport," he said.
Charleroi's support for Ryanair was sizeable. As well as a 50 per cent
reduction in landing taxes and a landing charge of only one euro per person instead
of the usual 13 euros, the airport paid £350,000 for the accommodation of air
crews and £500,000 towards pilot training.
Some industry insiders are not convinced that the European decision deals a
blow to other low-fare operators.
They say the law will still allow the kind of discounts which can fairly
attract a budget airline, but not the sort of wholesale subsidy which can only be
handed out with state backing.
Ryanair's competitor Flybe, which flies from Southampton, believes this
week's decision was based on "a set of circumstances specific to Ryanair".
Mike Rutter, marketing and sales director, said: "Only by safeguarding a
level playing field can the low cost sector continue to pass on exceptional value
to customers and stimulate the best possible commercial benefits for regions.
"All airlines negotiate cost deals with airports and we, along with other low
cost carriers, remain committed to the drastically reduced airport charges
we've worked hard to push through."