Shannon passenger charges to increase

AERONAUTICAL charges at Shannon Airport are going up from the end of October, a move that has seen Ryanair warning further services could be cut. There will be an increase of €1.58 per passenger, bringing charges to €6.30.

Shannon has claimed the increase only brings it into line with other airports but concerns have been voiced about the wisdom of raising costs, in the current economic climate.
In a statement, airport director Martin Moroney said the increase is needed and that prices have been stable for a long time.
“This is a small but necessary increase in overall charges that reflects the fact that Shannon is loss-making and needs to improve its viability. This is the first time in six years that we have adjusted prices in Shannon.
“While this is an increase in headline prices, Shannon continues to offer generous support schemes to our airline customers, which include discounts of up to 100% on airport charges.
“Even with this adjustment airport charges at Shannon remain lower than those at Dublin and in line with those at other comparable airports.”
Michael Vaughan of the Irish Hotels Federation said the increase could have been worse.
“Putting up charges in the current economic environment is unwelcome, but I would prefer to see this increase instead of what was being mooted in March, when a charge of €15 to be paid at the airport was mooted. That’s gone off the agenda and this is the lesser of two evils.”
He acknowledged the decline in numbers using the airport is a difficulty that has to be responded to.
“I would prefer to see charges being reduced rather than increasing, but having said that there is a serious situation at the airport with a loss of traffic and it’s inevitable that there will be steps to increase revenue, and I don’t think the amount is huge.”
Mr Vaughan said that it is important that incentives to encourage people to travel to Ireland are also put in place, given CSO figures showing a huge drop in the number of inbound passengers to the country.
Ryanair CEO Michael O’Leary blasted the increased charge in typically colourful style.
“Shannon Airport’s traffic in 2010 is on target to fall by 37% from 2.7 million passengers to 1.7 million. Already this winter Aer Lingus has announced the closure of the transatlantic routes for three months from January 2011. The Government’s €10 tourist tax has already made Shannon Airport totally uncompetitive as a gateway to the West of Ireland.
“At a time when Shannon Airport should be lowering costs, particularly entering the winter, the airport has announced a crazy plan to raise passenger fees by 33%. This will further damage Shannon’s traffic and tourism business, since price sensitive passengers simply won’t pay these unjustified price hikes from a Government owned airport monopoly.”
Clare TD Pat Breen said the increase is coming at a bad time.
“Any increase in passenger charges at this time sends out all the wrong signals. Passenger traffic numbers have plummeted at Shannon Airport over the past two years. At the end of last year 2.7 million passengers went through Shannon, down from 3.16 million the previous year. A further fall is expected this year with figures expected to fall to two million.”
He said that Government policy has failed Shannon, while he claimed that the near future will be very significant for the airport.
“Shannon Airport is at a crossroads and it will face further challenges in the coming months in its fight to retain passenger numbers, with Aer Lingus set to cease their transatlantic routes out of the airport for three months of 2011. New and innovative ways of developing business is now a priority. Many of the routes abandoned by Ryanair to sun destinations proved very popular and were very well supported and every effort must be made to secure alternative airlines to service these routes over the coming months.
“Shannon Airport needs more business and a strong marketing fund is required in the battle to secure additional services, otherwise, we will continue to witness the trend of declining passenger numbers.”
His colleague, Joe Carey, was also critical.
“This is incredibly short sighted financial planning and further evidence of the dead hand of the DAA at work in the Mid West. Levelling yet more charges on passengers will not help kickstart tourism and business in the region or help sustain and increase passenger numbers in such a difficult economic environment,” he said.
“Already we have seen what happens when more taxes and charges are levelled on passengers, as is the case with the Government’s €10 travel tax. Ryanair and others have significantly curtailed their business through the airport with many winter fares doubling.”