Michael O'Leary, Ryanair's chief executive
Chief executive Michael O’Leary said the airline would remove one aircraft from both Dublin and Shannon for its winter schedule, which starts in October.
This will result in 100 Ryanair jobs being lost at the airports. Ryanair has already taken five aircraft out its schedule at Dublin airport this year, with the loss of 250 jobs.
This winter it will operate 16 aircraft from Dublin and three from Shannon.
Ryanair has yet to announce which services will be cut. Mr O’Leary said additional cutbacks are likely in the coming months.
“The base in Shannon could close altogether and Dublin could face the loss of one or two extra aircraft this winter.” Mr O’Leary explained.
“This is just the start of it. There are going to be more cutbacks in July and August as tourist numbers collapse.”
Mr O’Leary said the move was prompted by the Government’s decision to introduce the travel tax in March 30th.
He described this decision as “crazy”, “stupid” and “tourism suicide” and said he had written yesterday to the Ministers for Finance and Transport and the Taoiseach asking them to abolish the tax.
“This [tax] is already devastating Irish tourism,” Mr O’Leary claimed, adding that passenger traffic at Dublin had declined by 11 per cent in the first five months of this year.
According to Mr O’Leary, the travel tax will result in about 1.25 million fewer tourists visiting Ireland this year, with a loss to the economy of €750 million, which includes about €150 million in VAT receipts.
The Government has estimated that the travel tax will yield it about €125 million a year in revenue. “If ever there was a tax that was self-defeating it’s this one,” he added.
Mr O’Leary said Ryanair would reverse the cuts if the Government changed its mind on the travel tax.
In the interim, he said Ryanair’s growth would be focused on its bases in continental Europe.
The airline expects to grow its passenger numbers by nine million this year. “We would like Ireland to participate in this rapid growth,” he said.
Mr O’Leary said staff in Dublin and Shannon affected by the cutbacks could seek to transfer to other bases in Europe, but no redundancy would be paid by the airline. “We don’t do redundancy,” he explained.
In response to the Ryanair announcement, the Shannon Airport Authority (SAA) said it was “disappointed” by Ryanair’s decision.
“Ryanair is a valued partner at Shannon airport and we hope that services will be restored in the future.” the SAA said.
A spokesman for the Dublin Airport Authority said: “The DAA is always disappointed when an airline decides to reduce its operations at the airport.”
Ryanair said it expects to carry about 8.3 million passengers at Dublin this year, down from 10.8 million in 2008.
It expects to handled 800,000 at Shannon, compared with 1.2 million last year.
Mr O’leary, I have to say you are totally and utterly delusional if you think the the republics government taxes are destroying air travel.. You should stop gazing at your navel, take a sniff of your own crappy onboard ‘premium’ coffee and understand that it is you and your money grabbing, disrespectful, and mercenary company tactics that are ruining air travel. Please just do us and your competitors all a favour.. Close down your sad excuse for a ‘customer service’ based business … take the millions and go and live away from us all so we dont have to listen to your childish rants and arrogant statements any more….
“We don’t do redundancy” says neocon, neolib and Thatcherite O’Leary. Either these redundant Irish employees relocate to mainland Europe, paying all cost involved without any compensation from MeanAir, or get thrown out on the street like garbage. This is part of the vile ideology of neoliberalism, whose supporters regard their employees as crap, treat them as such, and force them to work under the worst possible conditions. They would love to revert to 19th century working practices and conditions. One more reason for boycotting this nasty company.
I’ve given up on Ryanair, the whole experience with them over the past few years has wound me up with all the ‘extras’ and the cynical pricing policy that is designed to screw customers at every single opportunity. It makes my skin crawl and my head hurt. Recently they have also lost any advantage they did have on price. BA can get me to my destination, with the same baggage allowance etc as Ryanair for more than 10 quid less when booking for travel the same day to the ’same’ destination when all extras are taken into account. I arrive at a sensible time too and know the service I receive will better that of Ryanair even MOL is on the same flight.
BA ARE better value. Vote with your feet and let O’Leary spout his usual crap about ‘Europe’s favourite airline’ You’ve lost the plot you greedy ignorant irritating little man.