Monday, December 29, 2008

DAA to offer airline incentives in 2009

The Irish Times reports that the Dublin Airport Authority are to offer airlines an incentive scheme for launching new routes in 2009. The paper quotes a figure of €450,000 in marketing support over two year period for launching long haul routes and €100,000 for launching European routes. The scheme also incorporates steep discounts on passenger handling charges over a three year period. Year one sees a 100% discount on the current figure of €7.50 per passenger, 50% in year two and 25% in year three.
Expansion of the EU in recent years has seen growth in passenger numbers at Dublin coming from the newer markets rather than the mature UK and near Europe routes. The current economic downturn will have seen the newer markets suffer most and so the focus will be on these routes. The DAA will also be anxious to exploit the possibility of routes to Asia, especially China. Figures quoted earlier this year would indicate that passenger numbers from Ireland to the main Chinese gateways of Beijing and Shanghai are of a sufficient level to warrant a direct service. However the possibility of Aer Lingus launching on routes such as this would be slim thus relying on a Chinese airline to introduce a service.
Aer Lingus have apparently responded to the effect that their summer 2009 schedule is cut in concrete but that they would look at the scheme for winter 2009. Ryanair have responded by saying that they are unlikely to avail of the scheme since Dublin Airport is "high cost and uncompetitive".

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