Ryanair announced (12-Jun-2011) the new government policy of ceasing the provision of subsidies to Galway and Sligo airports is the "correct policy for Irish aviation and should be supplemented by the withdrawal of all PSO subsidies which have supported uneconomic and unviable domestic routes to Dublin which can no longer be justified given the recent improvements in motorway and train connections to the capital [Dublin]." The LCC stated that more than EUR80 million of taxpayer funds has been "wasted" on PSO subsidies for Galway and Sligo since 2002, with an average subsidy of EUR55 per passengers for the 80 daily return passengers on the Galway-Dublin route and EUR87 per passengers for the less-than-50 daily return passengers on the Sligo-Dublin route. Ryanair spokesman Stephen McNamara said the airline would also support the axing of PSO subsidies on routes from Dublin to Donegal and Kerry, "despite the fact that we have received the subsidies on the Dublin-Kerry route for the past three years". [more]
Ryanair supports PSO withdrawals
You may also be interested in the following articles...
Ryanair: digital success raises ancillary target to 30% as it becomes the "Amazon of air travel"
Kenny Jacobs, Ryanair's Chief Marketing Officer, has said that its website aims to become the "Amazon of air travel". The airline that was built around selling seats on flights as cheaply as possible – and not much else – now wants to sell a much wider range of products and services. In Oct-2016 it launched its new accommodation service, Ryanair Rooms, and it plans Ryanair Holidays by next summer.
Now well into its third year, Ryanair's 'Always Getting Better' programme (abbreviated to 'AGB') has been a demonstrable success. Accompanied by a move to increase Ryanair's presence in primary airports, AGB has aimed to improve customer service and reinvigorate its digital interfaces. Since AGB was initiated in 2014 Ryanair's passenger numbers have returned to double-digit rates of growth, and load factor has gained more than 10ppts.
Romania aviation Part 3: Blue Air opens Liverpool base and creates new markets; TAROM feels the heat
CAPA's first two parts of this analysis of Romanian aviation and the country's leading airlines highlighted the rapid, LCC-fuelled growth in the market of the past two years. The home-grown LCC Blue Air has overtaken the national airline TAROM in passenger numbers and fleet size, although Wizz Air is the largest airline in the market and Ryanair is also growing fast in the country. This third part of the analysis considers respective route networks and the competitive positions of TAROM and Blue Air.
Blue Air announced in Oct-2016 that it will establish a base in Liverpool in 2017, with new routes from the UK city to a range of European destinations outside Romania. This is a sign that Blue Air is taking the fight to airlines such as Ryanair and easyJet as it embraces the pan-European LCC model. Blue Air CEO Gheorghe Racaru has said, "The UK is a strategic market for Blue Air and we strongly believe that basing a 737-800 at Liverpool will allow us to strengthen our position as one of Europe’s fastest growing airlines".
For its part, TAROM, loss-making in contrast with Blue Air's profitability, is embarking on a restructuring following a change of management. It is facing increased competition on its network, while Blue Air has targeted its growth on routes where competitors are scarce or non-existent.