Aer Arann dubbed ’subsidy junkie’

Ryanair dubs Aer Arann ‘subsidy junkie’


Emer Gallagher

RYANAIR has won the right to challenge the awarding of the Government-subsidised Knock/Dublin route to Aer Arann.
Aer Arann was awarded the Knock/Dublin Public Service Obligation (PSO) route last week with Ireland West Airport Knock welcoming the decision.
Aer Arann had been operating the flights from Ireland West Airport Knock to Dublin under a similar contract from July 2005 until July 21 of this year.
Ryanair, however, said it is seeking an explanation as to why its offer of a smaller subsidy, lower fares and triple the passenger numbers for the Knock route was rejected in favour of Aer Arann’s proposal.
The High Court granted Ryanair’s application for a judicial review of the decision last Tuesday. Davy analyst Stephen Furlong said this decision could prove significant if Ryanair’s challenge is successful.
Ryanair’s director of legal and regulatory affairs, Jim Callaghan, said: “Ryanair has been a vocal critic of the Department of Transport’s waste of taxpayer funds in the area of PSOs and this is the latest example. We’re delighted the High Court has granted our request to challenge this unlawful decision.
“At a time of economic downturn, it is high time the Department of Transport stopped wasting taxes on grossly inflated PSOs by supporting the subsidy junkie Aer Arann, which does not publish accounts yet continues to receive massive state subsidies.”
Aer Arann is due to provide a daily early-morning service and an evening return service on the route beginning on October 1. It is unlikely this service will be affected by proceedings.