Updated charge demand is rejected

SHANNON Airport has rejected an updated demand from Ryanair regarding charges at the airport.

Ryanair had said they would bring 600,000 passengers to the airport per annum, with one aircraft at Shannon paying full passenger charges and serving eight routes.
The proposal would also have seen services provided to other European destinations also, from planes not based in Shannon. However, Ryanair were demanding that passenger charges on these routes be cut to just 50c, half of what they paid under the incentive scheme offered to them over the past five years.
Shannon Airport director Martin Moroney said that a deal was not possible under the terms. “The airport would require the payment of full commercial charges for such a low level of passenger traffic and therefore, it could not accede to the unreasonable demands of Ryanair for the continuation of some routes at a minimal level of charge.”
Mr Moroney said that regulations prohibit airlines from continuing to offer incentives to certain airlines indefinitely.
He claimed that cutting the charges to Ryanair further would mean Shannon would be providing the services at a loss, if passenger numbers were down to 600,000. “On the basis of that lower throughput, we couldn’t consider giving much by way of incentives. We certainly couldn’t reduce it below €1 per passenger.”
Shannon’s viability has to remain a priority, he added. “We have to look at the long term and make sure the airport is financially sound.”
Mr Moroney said that Shannon is in talks with a number of airlines and is hoping to add new services.
In a statement, Ryanair’s Stephen McNamara said that Shannon’s pricing structure wasn’t competitive.
“Ryanair’s customers are demanding lower fares. Therefore, as a commercial operation, Ryanair must seek lower airport charges; it is simple economics.
“Shannon Airport has decided not to listen to the needs of Ryanair, its largest customer, which is fine.
“We accept their decision and like all customers looking for value for money, we will now look for value elsewhere. Airports throughout Europe are lowering charges, in some cases to zero, and from March our Shannon, aircraft will move to these more competitive markets.”