Ryanair threatens to slash Shannon base

Ryanair has said it will reduce its Shannon base by 75% - cutting its aircraft numbers from four to one – if the Government does not remove the €10 tourist tax or if the airport fails to reduce its cost base by 50%.

The low-fares airline is currently in talks with airport authorities about the terms for an extension of Ryanair’s five-year base agreement at Shannon, which runs out in April 2010.

Today Ryanair said that under the current agreement which was signed in late 2004, it has grown its annual traffic at Shannon from 300,000 passengers in 2004, to 1.9m last year.

However it said that the Government’s €10 tourist tax, introduced in April 2009, “continues to devastate traffic and visitor numbers at all Irish airports and Shannon in particular”.

Ryanair has already cut its Shannon base from six aircraft in winter 2008, to four in summer 2009, and is reducing the base further to three aircraft in winter 2009/10.

The airline, which says it has lost money in each of the five years it has operated a Shannon base, insists that it is “willing to continue to base aircraft and deliver substantial passenger numbers and jobs at Shannon” if the €10 tourist tax is removed before February, and if Shannon airport reduces its costs by 50% over the terms of a new five-year agreement.

Deputy Chief Executive Michael Cawley reiterated Ryanair’s call on the Government to scrap the “stupid and damaging” €10 tax in line with other European governments.

“The Belgian and Dutch governments have already realised the damage that these tourist taxes cause and have scrapped them,” Mr Cawley said.

“Similarly the Greek and Spanish Governments have reduced their airport charges, in some cases to zero, in order to reverse traffic and tourism declines during the current recession. The Irish Government and its inefficient airport monopoly the DAA must follow suit."