Diminishing returns

The worst kept secret in Shannon finally broke cover today when Ryanair announced that the airline would be reducing it's base size at the airport by 33%. Commencing April 1st the impact of the cutback will be :

• Based aircraft reduced from 6 to 4.
• Network reduced from 30 to 25 destinations.
• Weekly flights reduced from 136 to 116.
• Ryanair headcount at Shannon reduced from over 300 to less than 200.
• Passenger throughput reduced from 1.9m to 1.2m per annum.

Ryanair blame the cutbacks at Shannon on the imposition of the €10 travel tax which was brought in by the government in the last budget. The airline says that the value of the tax exceeds the value of fares which are "frequently less than €10 one way" and is "devastating forward bookings in Shannon". 

Speaking in Shannon today, Ryanair CEO Michael O'Leary said that the decision of the Irish government to impose the travel tax was "tourism suicide" adding that the only reason many people travel on Ryanair flights to Shannon is the fact that the fares are often below €10. 

Ryanair while regretting today's decision have also said that the decision is immediately reversible if the Irish government should scrap the €10 travel tax.

Responding to today's announcement the Shannon Airport Authority said that "Ryanair has availed of an extremely attractive based aircraft incentive scheme to deliver agreed targets at Shannon over a 5 year period. Shannon Airport has met all its obligations in respect of the agreement and we expect the airline will likewise honour its commitments. We do not accept that Ryanair can avoid its contractual commitment on the basis of the air travel tax introduced by the Government.

Ryanair is a valued customer at Shannon Airport. We look forward to holding discussions with Ryanair to agree ongoing traffic development well beyond the current agreement in the mutual interest of both companies and to support the development of the West of Ireland."