Idunno
28th Apr 2002, 11:26
Interesting article in todays Irish Sunday Business Post. Seems Ryanair like taxpayers money as much as anyone else...only they never pay it back.
Here's the link...Sunday Business Post (http://www.sbpost.ie/story.jsp?bottomadvert=&rightadverts=&rightnav=/common/navs/right/sponsorsnav.jsp&leftadverts=&advert=/common/adverts/top/homepage.htm&title=Sunday+Paper&story=WCContent;id-44553&list=businesspost)
Here's the article:
Ryanair is not willing to repay insurance costs
By Kathleen Barrington
Dublin, Ireland, 28 April, 2002
Ryanair is in receipt of a state subsidy in the form of free aviation insurance.
The chief executive of `no frills' airline Michael O'Leary told The Sunday Business Post he has no intention of paying for the insurance cover which he got free last October, courtesy of the Irish taxpayer.
The Irish government pledged about €5 billion to underwrite the cost of aviation insurance for all airlines operating out of Ireland after commercial insurers temporarily withdrew cover following the events of September 11.
O'Leary argues that Public Enterprise Minister Mary O'Rourke had not told the airlines they would be required to pay for the insurance cover provided by the taxpayer for the first month.
He said that at the time the cover was provided, airlines were told "we wouldn't be charged".
Ryanair had not passed on the cost of providing the cover to its customers because it had not expected to be charged for it, he added. He said that when the Department of Public Enterprise had retrospectively asked for premiums to be paid, he had refused.
It is understood that all other Irish-based airlines, such as Aer Lingus, have paid the government premiums on the insurance provided by the state for October and all subsequent months, while only Ryanair has resisted paying for October.
Ryanair is believed to be charging €3.41 per passenger to cover the cost of insurance since last October while Aer Lingus is charging €4.58.
Aer Lingus sources said the differential was because Aer Lingus was active on the US routes where the insurance loading was higher. By contrast, Lufthansa charges €9.13.
Meanwhile, Ryanair last month ceased to avail of the state-backed scheme after it secured aviation insurance from commercial insurers through Lloyd's of London.
O'Leary would not say whether the price he was paying for this aviation insurance was more or less than what he would have paid if he continued to avail of the state-backed aviation insurance which Aer Lingus continues to buy.
However, he played down suggestions in the market that Ryanair had settled for a lower level of aviation cover than what would have been available under the state scheme.
He said Ryanair now had a larger amount of cover per plane and that it had obtained a guarantee from the insurance provider that the cover would not be withdrawn for a period of one year even if there was another international terrorist attack.
Meanwhile, it is believed that Aer Lingus will seek insurance in the commercial market when the government scheme expires later this month.
Here's the link...Sunday Business Post (http://www.sbpost.ie/story.jsp?bottomadvert=&rightadverts=&rightnav=/common/navs/right/sponsorsnav.jsp&leftadverts=&advert=/common/adverts/top/homepage.htm&title=Sunday+Paper&story=WCContent;id-44553&list=businesspost)
Here's the article:
Ryanair is not willing to repay insurance costs
By Kathleen Barrington
Dublin, Ireland, 28 April, 2002
Ryanair is in receipt of a state subsidy in the form of free aviation insurance.
The chief executive of `no frills' airline Michael O'Leary told The Sunday Business Post he has no intention of paying for the insurance cover which he got free last October, courtesy of the Irish taxpayer.
The Irish government pledged about €5 billion to underwrite the cost of aviation insurance for all airlines operating out of Ireland after commercial insurers temporarily withdrew cover following the events of September 11.
O'Leary argues that Public Enterprise Minister Mary O'Rourke had not told the airlines they would be required to pay for the insurance cover provided by the taxpayer for the first month.
He said that at the time the cover was provided, airlines were told "we wouldn't be charged".
Ryanair had not passed on the cost of providing the cover to its customers because it had not expected to be charged for it, he added. He said that when the Department of Public Enterprise had retrospectively asked for premiums to be paid, he had refused.
It is understood that all other Irish-based airlines, such as Aer Lingus, have paid the government premiums on the insurance provided by the state for October and all subsequent months, while only Ryanair has resisted paying for October.
Ryanair is believed to be charging €3.41 per passenger to cover the cost of insurance since last October while Aer Lingus is charging €4.58.
Aer Lingus sources said the differential was because Aer Lingus was active on the US routes where the insurance loading was higher. By contrast, Lufthansa charges €9.13.
Meanwhile, Ryanair last month ceased to avail of the state-backed scheme after it secured aviation insurance from commercial insurers through Lloyd's of London.
O'Leary would not say whether the price he was paying for this aviation insurance was more or less than what he would have paid if he continued to avail of the state-backed aviation insurance which Aer Lingus continues to buy.
However, he played down suggestions in the market that Ryanair had settled for a lower level of aviation cover than what would have been available under the state scheme.
He said Ryanair now had a larger amount of cover per plane and that it had obtained a guarantee from the insurance provider that the cover would not be withdrawn for a period of one year even if there was another international terrorist attack.
Meanwhile, it is believed that Aer Lingus will seek insurance in the commercial market when the government scheme expires later this month.