Ryanair Reduces Shannon Base as Unfair ¤10 Govt...
RYANAIR REDUCES SHANNON BASE, AS UNFAIR ¤10 GOVT. TRAVEL TAX TURNS
OFF TOURISTS
RYANAIR SHANNON TRAFFIC TO FALL 40% FROM 1.9M TO 1.2M P.A.
Ryanair, Europe's largest low fares airline, today (Thurs, 5 Feb)
confirmed that the Government's new and unfair ¤10 travel tax is
already having a damaging impact on forward bookings from 30th March
next. This ¤10 tourist tax, which has already caused traffic
declines in the UK and Holland when previously introduced, is
devastating forward bookings in Shannon, because in many cases it
exceeds the air fare paid by many passengers on Ryanair's low fares
routes from Shannon. Ryanair regrets that this 100% rate of tax
leaves it with no alternative other than to reduce its aircraft
numbers, routes, flights and traffic to/from Shannon from 30th March.
Ryanair confirmed this morning that from 30th March, it will:
* Reduce its Shannon based aircraft numbers from 6 to 4 in
Summer'09.
* Reduce its route network at Shannon from 30 to 25.
* Cut its weekly Shannon flights from 136 to 116 flights.
* Reduce its Shannon traffic from 1.9m to 1.2m in the first
year of this unfair ¤10 tourist tax.
* Reduce its Shannon jobs from over 300 to less than 200.
These cuts will result in over 100 Ryanair jobs at Shannon being
transferred to other bases. The loss of 700,000 passengers will also
give rise to the loss of approximately 700 support jobs in and around
Shannon Airport.
Ryanair condemned the Irish Government's insane decision to levy a
flat rate ¤10 tourist tax on passengers travelling from the West of
Ireland, at fares which are frequently less than ¤10 one way.
Ryanair called again on the Irish Government - even at this late
stage - to cancel this insane and stupid tax which will devastate
traffic and tourism numbers in Ireland in 2009.
Speaking today in Shannon, Ryanair's Michael O'Leary said:
"Having invested millions of euro and sustained large losses growing
Ryanair's base in Shannon over the past 4 years from 400,000 to 1.9m
passengers (at a time when Aer Lingus and many other airlines pulled
out) this insane ¤10 visitor tax will devastate traffic at Shannon.
The only reason why many of the 1.9m passengers travel with Ryanair
to/from Shannon is because of Ryanair's exceptionally low fares, many
of which are less than ¤10. This Government's decision to impose a
travel tax of more than 100% on these price sensitive visitors is
insane and simply "tourism suicide".
"It is not as if the Irish Government hasn't seen examples from other
EU countries of the devastating failure this travel tax will have on
visitor numbers. The UK's traffic has already fallen 10% and Dutch
visitors by even more since they introduced an equally stupid and
self defeating tourist tax. Ryanair again calls on the Government to
scrap this suicidal tax measure and make greater savings by
withdrawing funding from useless quangos like Tourism Ireland (¤40m)
or Fáilte Ireland (over ¤60m).
"Irish tourism can only succeed if Ireland is a low cost
destination. Irish tourism has been the beneficiary of Ryanair's
extremely low fares and no fuel surcharges for many years, but now
this Government seems determined to kill the tourism industry with
this insane ¤10 visitor tax. Ryanair will do its utmost to maintain
the maximum number of flights and traffic at Shannon, but we cannot
do so when the Government taxes are greater than our ticket prices,
which makes Shannon and the West of Ireland totally uncompetitive
against the many other low cost - non taxed - destinations across
Europe."
Ends. Thursday, 5th
February 2009
For further information
please contact: Stephen
McNamara Pauline McAlester
Ryanair
Ltd Murray Consultants
Tel:
+353-1-8121212 Tel. +353-1-4980300
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