Ryanair attacks subsidies on routes

RYANAIR HAS called on the Government to scrap subsidies for air routes from Dublin to six regional airports, describing them as "extraordinarily excessive and wasteful".

The call was made less than 72 hours before the deadline closes for tenders to operate six public service obligation (PSO) routes between 2008 and 2011. Ryanair plans to pitch for the Dublin-Kerry route. The contract winners will be announced on May 3rd.

Ryanair claimed yesterday that the Government had paid €109 million over the past six years to subsidise six air routes out of Dublin - to Derry, Donegal, Galway, Knock, Kerry and Sligo.

It said 42,000 passengers were carried on these routes in 2006 at an average cost to the taxpayer of €102 each.

It said more than €100 million was paid to Aer Arann alone over this period. "This taxpayers' money is being wasted in order to prop up Aer Arann and to sustain uneconomic domestic air routes, which serve tiny traffic figures," Ryanair said.

The Department of Transport declined to comment but informed sources said the figure quoted by Ryanair as having been paid to Aer Arann was too high.

Aer Arann's executive chairman Pádraig Ó Céidigh said PSO routes were a matter of Government policy and were approved by the European Commission.

"We just tender for them like other airlines tender for them," he added. "PSO routes are decided as a matter of government policy. It's about whether they want regional access or they don't - it's as simple as that.

"It's not up to me to say if they are right or they are wrong. There's a procurement process in place and that's highly transparent."

Mr Ó Céidigh also pointed out that Aer Arann won four of the six PSO contracts last time around but was subsequently awarded an additional contract when Scotland's Loganair pulled out of the Knock route. Loganair provides the subsidised service between Dublin and Derry.

Ryanair, BMI Regional, CityJet and European Express all applied without success in 2005.