Ryanair in muy caliente water
All cross Europe, airports, local authorities and politicians are pointing the finger at Ryanair’s methods. Among them, blackmail, pressure, and public money as its only sustainable way to survive. This week, Tallin Airport (Estonia) spoke out about the pressure, and Ryanair’s impossible demand: to reduce airport charges to nil.
Erik Sakkov, a member of the supervisory board of the Tallin Airport declared that “It would be hopeless to lower the fees so much that Ryanair would be prepared to fly here” and stated that the airline’s offer included a demand that from 950,000 passengers airport fees will be lower to zero. As many small regional airport managers, Sakkov has realised, that it would be an impossible challenge for the airport, “If the revenue base would be zero, our costs would not go anywhere”, asserted Sakkov, commenting that the airport would be forced to pay
for Ryanair’s services from its own pocket. He calculated that if the airline reached its goal and carried one million passengers out of Tallin Airport, the airport would need 130 million kroons to survive.
Ryanair in muy caliente water
From Estonia to Spain, reactions are equal. Let’s now have a look at what’s going on at Federico García Lorca Airport, Granada, Spain. Ryanair recently decided to close four of six routes at the airport “due to the excessive costs of airport”.
This implies the loss of 28 flights per week, 400,000 passengers, 400 jobs. According to local analysis, Ryanair calls for a contribution of 1,35M€, stating, “if we divide the 400,000 passengers who may lose out to EUR 3.36 subsidy that is provided for each passenger.”
Once more, Ryanair has decided to close routes, and probably open new ones from another small regional airport, somewhere where public authorities will agree to pay up. Ostende Airport is a likely guess, as it is currently negotiating Ryanair’s come back, and seems to agree to 1M€ the airline has asked for.
International airports stand up to Ryanair
If Ryanair is advantaged regarding negotiations with small airports, there is one battle it will have a hard tome winning: International airports. Indeed, international airports already have traffic.
However, Ryanair attempted to ask El Prat for 11M€, but the airport declined its demand.. Each times Ryanair tries to negotiate special deal with major international airport, it failed. Take Madrid for example or even its desire to open routes out of Lisbon airport. Major cities, don’t need to pay Ryanair to be attractive, to generate traffic. El Prat is one of these kinds of aiports.
Ryanair stabbed in the back by one of its own
Most people think that the low cost business model is unique. Actually, it’s more like Ryanair’s business model is unequaled. It’s the only airline to perceive such amounts of public money.
Following Ryanair’s demand to El Prat, Vueling’s pilots and the work council of Barcelona sent to the president of El Prat, José Montilla a letter asking him not to subsidize Ryanair. Alvaro Middleman, Director of Air Berlin in charge of Spain and Portugal, also reacted. He argued that “opaque” subsidies that Ryanair receives from operating in certain Spanish airports traffic only create an “artificial” traffic.
