End to PSO Subsidies
Ryanair Holdings PLC
29 February 2008
RYANAIR CALLS FOR AN END OF PSO SUBSIDIES
OVER €100m SUBSIDIES PAID TO AER ARANN OVER 6 YEARS
IN MASSIVE PUBLIC WASTE
Ryanair today (Friday, 29th February 2008) renewed its call for the ending of
the extraordinarily excessive and wasteful PSO subsidies under, which:
- Over €45m has been paid to Aer Arann over the past three years.
- Over €100m has been paid to Aer Arann over the past six years.
This taxpayers money is being wasted in order to prop up Aer Arann and to
sustain uneconomic domestic air routes, which serve tiny traffic figures. One
must question, given the improved motorways, bus and train services to the
regions as well as international air routes, whether these enormous subsidies of
up to €100 for each passenger is really justified. Perhaps this €109m could be
better spent on Ireland's hospitals and schools where millions of people rather
than hundreds could be served.
--------------- ----------- ---------- ---------- ------------
Route Jul '02/Jul July '05/Jul 2007 Subsidy per
'05 '08 Pax
Pax Nos 2007
--------------- ----------- ---------- ---------- ------------
Kerry-Dublin €14,361,100 €9,025,482 98,000 €31
--------------- ----------- ---------- ---------- ------------
Galway-Dublin €16,317,100 €8,999,571 73,000 €42
--------------- ----------- ---------- ---------- ------------
Sligo &
Donegal-Dublin €14,400,000 €15,526,782 79,000 €68
--------------- ----------- ---------- ---------- ------------
Knock &
Derry-Dublin €17,699,268 €12,266,066 42,000 €102
--------------- ----------- ---------- ---------- ------------
Total Subsidy €62,777,468 €45,317,901 = €108,595,367
Ryanair highlighted the fact that Aer Arann's high costs, and the tiny passenger
figures (less than 150 passengers per day on each of 6 routes) means that the
taxpayer is subsidising these few passengers on every flight to the tune of:
- Over €100 per passenger on Knock/Derry route
- Over €68 per passenger on Donegal/Sligo route
- Over €42 per passenger on Galway route
- Over €30 per passenger on Kerry route
The Department of Transport has invited applications for another three years of
unjustified and excessive subsidies on these routes for the period from July
2008 to July 2011. These tenders must be submitted to the Department on Monday,
3rd March next.
Ryanair will be submitting a tender on the Dublin-Kerry route which will
substantially reduce the subsidy on this route. However because of the terms of
the tender, Ryanair cannot bid for, and cannot operate, flights on the Galway/
Knock/Derry or Donegal/Sligo routes. Accordingly, these massive subsidies to Aer
Arann will continue unless common sense prevails and this PSO subsidy scam is
ended.
Calling for an end to the massive Government waste on these PSO subsidies,
Ryanair's Peter Sherrard said:
'This money is being poured down the drain by the Irish Government,
supporting uneconomic air services from the regions at a time when Ireland's
road, rail and bus connections to the regions has improved dramatically.
There is no justification for subsidising every passenger on the Knock and
Derry routes by over €100 per passenger. It would be cheaper for the
Government to give this money directly to the passengers concerned as it
would more than pay for train and taxi fares for each of them to connect to
Dublin. We believe that these subsidies are a massive State which are
propping up the uneconomic activities of Aer Arann.
'At a time when the Irish health services and schools are in a crisis, it is
hard to justify €100m in subsidies for a small, high cost regional airline.
One can only imagine how many hospital beds, or how many Autism schools or
Cystic Fibrosis centres could be built and run with these vast sums of
money. Ryanair believes that its time that these PSO subsidies were ended,
and this €100m. of taxpayers funds was better used to improve the health
system, or the education facilities system in this country instead of lining
the pockets of a few Aer Arann shareholders'.
Ends. Friday, 29th February 2008
For reference:
Peter Sherrard - Ryanair Pauline McAlester / Robert Marshall - Murray Consultants
Tel: +353-1-8121228 Tel: +353-1-4980300
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