Ryanair Rejects Aer Arannâs Claims
Ryanair News
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News Release
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06.06.08
Ryanair Rejects Aer Arannâs Claims
Ryanair, Irelandâs largest airline, today (Friday, 6th June 2008) rejected
the remarkable and completely ludicrous claim by Aer Arannâs Pádraig Ã
Ceidigh who suggested in an Irish Times interview that âThe biggest problem
we (Aer Arann) are facing is that Ryanair is all over us like a rashâ.
Ryanair confirmed that there was no substance whatsoever to this ludicrous
claim.
Ryanair pointed out that of its 670 routes, it competes with Aer Arann on
just one (Dublin-Cork). Out of Aer Arannâs 40 plus routes they compete with
Ryanair on just one (Dublin-Cork). Even Aer Arann would find it difficult
to explain how Ryanair could be âall over it like a rashâ on just one of
its 40 plus routes.
Ryanair confirmed that these claims by Pádraig à Ceidigh are designed to
deflect attention from its financial losses, at a time when Aer Arann have
lost one of its PSO subsidised routes (Dublin-Kerry) to Ryanair. This will
reduce the amount of Government subsidies received by Aer Arann by some â¬5m
over the next three years. The reality of Aer Arannâs financial position is
that the combination of high fares, low load factors, poor punctuality and
the loss of massive Government subsidies will result in significant losses
this year. Aer Arann, which doesnât publish its accounts (a remarkable
omission for a company who received over â¬100 million in subsidies over the
last 6 years) cannot survive without massive Government subsidies. These
attempts to blame Ryanair for its losses have no substance when the two
airlines compete on only one route.
Ryanair believes that Aer Arannâs losses will rise as a result of the loss
of the Dublin-Kerry subsidies and it is questionable whether Aer Arann
could survive at all without the Government PSO subsidies.
Commenting today on Pádraig à Ceidighâs claims, Ryanairâs Michael OâLeary
said:
âWe compete with Aer Arann on just one of our 670 routes. At a time when
we plan to double in size over the next 5 years, our major focus is on our
principal competitors BA, Air France and Lufthansa and not on tiny regional
loss making airlines like Aer Arann. We remain concerned that the Irish tax
payer is still paying out millions of unjustified subsidies annually to an
unlimited airline which doesnât publish any accounts. It is seriously
questionable whether this is a sensible use of tax payersâ funds, which
should in our view be better spent on the health services or education in
Ireland. There is no truth to the claim that Ryanair is âall over Aer
Arannâ. We have demonstrated to the Competition Authority that there was no
truth in Aer Arannâs claims on the Cork-Dublin route. Aer Arann is simply
trying to deflect attention from its ongoing and increasing losses by
blaming an airline which it competes with on just one of its 40 plus
routes.
Ryanair calls on Aer Arann to put up or shut up. Aer Arann should publish
its accounts and let its customers see exactly whether it would be
profitable or not or whether it could even survive without these massive
taxpayer subsidiesâ.
date: Sun, 8 Jun 2008 02:43:16 +0100
author: Jim Mason
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Ryanair Rejects Aer Arannâs ClaimsRe:
In article ,
jim.mason@removethisukonline.co.uk says...
> Ryanair calls on Aer Arann to put up or shut up. Aer Arann should publish
> its accounts and let its customers see exactly whether it would be
> profitable or not or whether it could even survive without these massive
> taxpayer subsidiesâ.
You really have to admire their nerve. RYR are the biggest by far
beneficiary of the EU deemed illegal Scottish Route Development Fund.
I assume RYR will now be publishing how ""profitable"" their Scottish
routes are without this SE handout?
date: Sun, 8 Jun 2008 02:47:35 +0100
author: Jim Mason
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