ICG passenger numbers drop 12%

PASSENGER numbers have slumped 12% in the first four months of the year, ferry operator Irish Continental Group (ICG) said yesterday.

The group blamed the decline on a competitive market and industrial relations difficulties that forced the partial closure of operations over a four-day period earlier this year.

Chairman Tom Toner told shareholders at the group's annual general meeting that the overall tourist market had fallen by 7%. But improved cost control and higher passenger yields had partially offset the revenue hit arising from the lower volume of business on its routes across the Irish Sea and to France.

The group's freight operations had a 4% increase. Mr Toner said the group was confident ahead of the key trading period over the summer, when ferry operators earn the bulk of their revenues.

Managing director Eamonn Rothwell said the group had not yet resolved its industrial relations problems with SIPTU and the Seamen's Union of Ireland. Mr Rothwell said ICG's adherence to national pay deals meant its pay bill had increased more quickly than those of competitors but needed to implement industry best practices to remain competitive.

Mr Rothwell called on the government to ensure that subsidies given to regional airline Aer Arann to provide flights within Ireland were not being used to cross-subsidise the airline's routes from regional airports to Britain.