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Dublin Airport Authority and Ryanair 'growth discount' talks break down

18-Feb-2011 11:44 AM

Dublin Airport Authority stated Ryanair rejected (17-Feb-2011) its offer of more than EUR60 million worth of discounts on airport charges to stimulate incremental passenger growth across its three Irish airports. Ryanair insisted it be paid more than EUR100 million in discounts, with no guarantee of any additional traffic and the LCC also sought to be paid EUR10 million in discounts for existing passengers at Dublin Airport. The DAA believes Ryanair's proposal would see the LCC financially rewarded for reducing traffic at Cork and Shannon airports and transferring it to Dublin. [more]

Ryanair stated it is "extraordinary" the DAA would not agree to its terms. The LCC confirmed plans to grow by 5 million passengers in 2011, but "will not now allocate any of this traffic growth at Dublin". CEO Michael O'Leary expects Dublin to suffer a third consecutive year of traffic decline, while the DAA "manages two empty terminals and funnels 'growth' discounts to Aer Lingus and other traffic cutting airlines". [more]

DAA: “We have offered Ryanair generous discounts worth more than GBP60 million if the airline delivers the new passengers that it claims it can. Our aim is to encourage additional passenger traffic for Dublin Airport and for the country as a whole, but Ryanair was unable to provide any guarantee that the traffic it would deliver under its proposal would be additional ... Agreeing to the Ryanair proposal would mean that DAA could potentially pay Ryanair GBP100 million in incentives for no overall passenger growth and no extra inbound tourists" Declan Collier, CEO. Source: Company Statement, 17-Feb-2011.

Ryanair: “It’s extraordinary that the DAA, having presided over two years of traffic collapses during which Dublin Airport’s traffic has fallen from 23.5 million to just 18.5 million p/a, has now rejected Ryanair’s offer of 4 million passenger growth which would generate up to 4000 jobs and more than GBP2 billion for Dublin and Irish tourism. The DAA is presently giving discounts to Aer Lingus, despite the fact that Aer Lingus’ traffic is in decline, but have this morning refused to extend these discounts to Ryanair because Mr Collier claims that Ryanair’s growth would be 'too expensive' for the DAA." Michael O'Leary, CEO. Source: Ryanair, 17-Feb-2011.