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Ryanair Rejects Aer Arann?s Claims

Ryanair News
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News Release
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06.06.08
Ryanair Rejects Aer Arann’s Claims


Ryanair, Ireland’s largest airline, today (Friday, 6th June 2008) r
ejected
the remarkable and completely ludicrous claim by Aer Arann’s PÃ
¡draig Ó
Ceidigh who suggested in an Irish Times interview that “The biggest
problem
we (Aer Arann) are facing is that Ryanair is all over us like a rashâ€
�.
Ryanair confirmed that there was no substance whatsoever to this ludicrous

claim.

Ryanair pointed out that of its 670 routes, it competes with Aer Arann on

just one (Dublin-Cork). Out of Aer Arann’s 40 plus routes they comp
ete with
Ryanair on just one (Dublin-Cork). Even Aer Arann would find it difficult

to explain how Ryanair could be “all over it like a rash� o
n just one of
its 40 plus routes.

Ryanair confirmed that these claims by Pádraig Ó Ceidigh are desi
gned to
deflect attention from its financial losses, at a time when Aer Arann have

lost one of its PSO subsidised routes (Dublin-Kerry) to Ryanair. This will

reduce the amount of Government subsidies received by Aer Arann by some â
‚¬5m
over the next three years. The reality of Aer Arann’s financial pos
ition is
that the combination of high fares, low load factors, poor punctuality and

the loss of massive Government subsidies will result in significant losses

this year. Aer Arann, which doesn’t publish its accounts (a remarka
ble
omission for a company who received over €100 million in subsidies
over the
last 6 years) cannot survive without massive Government subsidies. These
attempts to blame Ryanair for its losses have no substance when the two
airlines compete on only one route.

Ryanair believes that Aer Arann’s losses will rise as a result of t
he loss
of the Dublin-Kerry subsidies and it is questionable whether Aer Arann
could survive at all without the Government PSO subsidies.

Commenting today on Pádraig Ó Ceidigh’s claims, Ryanair
’s Michael O’Leary
said:

“We compete with Aer Arann on just one of our 670 routes.   At a ti
me when
we plan to double in size over the next 5 years, our major focus is on our

principal competitors BA, Air France and Lufthansa and not on tiny regional

loss making airlines like Aer Arann. We remain concerned that the Irish tax

payer is still paying out millions of unjustified subsidies annually to an

unlimited airline which doesn’t publish any accounts. It is serious
ly
questionable whether this is a sensible use of tax payers’ funds, w
hich
should in our view be better spent on the health services or education in

Ireland.   There is no truth to the claim that Ryanair is “all over
Aer
Arann�. We have demonstrated to the Competition Authority that ther
e was no
truth in Aer Arann’s claims on the Cork-Dublin route. Aer Arann is
simply
trying to deflect attention from its ongoing and increasing losses by
blaming an airline which it competes with on just one of its 40 plus
routes.

Ryanair calls on Aer Arann to put up or shut up. Aer Arann should publish

its accounts and let its customers see exactly whether it would be
profitable or not or whether it could even survive without these massive
taxpayer subsidies�.

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