Price war takes off as Aer Lingus slashes fares
The national carrier squared up to low-fares airline Ryanair by cutting prices on half a million seats, offering flights for as little as 8.
Aer Lingus is knocking 30% off flights to cities like Glasgow, Munich and Rome and booking is expected to be brisk from tomorrow when the seat sale begins for travel between January 6 to March 31, 2003.
Ryanair quickly responded by offering one million seats at half price.
"Customers continuously tell us they want cheaper airfares and value for money," said Aer Lingus corporate affairs manager Dan Loughrey. "Our strategy now is to cut our costs and increase the number of customers flying with us. This is working. So far this year we have carried 3.5 million passengers on low fares."
Last night, Ryanair branded the Aer Lingus seat sale as pathetic, claiming Ryanair has double the number of discounted seats on offer, at half the price.
"This is a pathetic move by Aer Lingus and we are not at all worried," said Ryanair commercial director Micheal Cawley.
"Aer Lingus admits that customers continuously tell them they want lower airfares and value for money, yet they still disappoint them by offering fares which are more than twice those offered by Ryanair," he said.
He added Ryanair has seat sales every day, while Aer Lingus only announces them occasionally.
Despite the war of words between the two airlines, chief executive of the Consumers' Association of Ireland Dermott Jewell welcomed the price war and said it was exactly what hard-pressed consumers want.
"It's real competition coming into play and it's been needed for a long time. It's about time Aer Lingus got into the fray and fought for custom," he said.
But he criticised both airlines for engaging in misleading ticket pricing and warned consumers to be aware of the hidden extras such as taxes, insurance and credit card handling charges.
"There is an extraordinary amount of small print. Basically, it not only confuses consumers about what is on offer, it also misleads them about the actual price," Mr Jewell said. Aer Lingus discount flight offers do not include taxes and charges. To a 16 return ticket to Glasgow must be added 33 in taxes, making the total price 49. Ryanair's one-way prices do include taxes, but not the 5 handling charge for credit cards bookings.
