Authority disputes ‘no-fly zone’ claims

THE Irish Aviation Authority (IAA) has hit back at claims from a European airline group that Ireland is set to become a “no-fly zone” because of increased charges.

The Association of European Airlines (AEA) said airline traffic in Ireland will go into free-fall because of the €10 travel tax and decision by the Irish Aviation Authority to increase navigation charges.

The AEA said the IAA is planning to increase the fees it charges its airline customers by 17% next year. However, the IAA has strongly disputed this saying that it had initially planned such an increase but it now accepts that such a hike could not be sustained by the airlines.

It said it has “worked hard” through a series of cost containment measures to reduce this increase to about 3.9%. “Our cost containment programme compares favourably with any in Europe and includes continuation in 2010 of a pay freeze, CAPEX reductions and improved operational efficiencies,” said IAA spokeswoman Lillian Cassin.

The AEA is also critical of the Irish Government’s travel tax and has called on the Government to scrap the tax.

AEA secretary general Ulrich Schulte-Strathaus said: “It doesn’t take a genius to work out what will happen when you put a €10 surcharge on airfares in the middle of the worst recession on record, your traffic will go into free-fall.

“Aviation can drive the economic recovery and especially so in the case of islands in the periphery of Europe, which depend upon aviation as a means of trade and tourism.

“What the Irish government has failed to see is the implication of penalising aviation, and thus jeopardising employment, by the twin burdens of a heavily taxed customer base and an overpriced and under-productive infrastructure,” he added.

Ryanair also called yesterday for the government to freeze airport charges.

Ryanair spokesman Stephen McNamara said: “It is time to get rid of this useless Aviation Regulator and to axe the tourist tax.

“Ireland must immediately put in place an efficient and effective system of regulation which is not biased towards badly run, inefficient Government monopolies.”

He said that throughout Europe airport charges are falling and tourist taxes are being scrapped but in Ireland “we stick by suicidal tourist taxes and increase already uncompetitive airport and ATC charges”.

Bloxham analyst Joe Gill condemned the hike in charges saying “this new nail in Ireland’s aviation coffin” does not just affect flights to and from the island it also impacts overflights and said Ireland is a key airspace between the EU and the US.