Ryanair route applications and air fares
The Minister said decisions on Cork and Shannon–London services were pending UK negotiations, while applications for Dublin–Manchester, Amsterdam and Paris had previously been refused because market conditions did not justify another carrier; he would reassess those conditions. Members pressed for competition to reduce high fares and questioned disparities between routes, while the Minister supported lower fares and acknowledged that fare regulation could have a similar effect.
asked the Minister for Communications if he proposes to accede to the request by Ryanair to operate on the Cork-London, Shannon-London, Dublin-Manchester, Dublin-Amsterdam and Dublin-Paris routes; and if he will make a statement on the matter.
Comment on this
In relation to the Cork and Shannon to Luton routes, I understand that my predecessor postponed a decision on the Ryanair applications pending the outcome of current negotiations with the UK on the development of a more liberal bilateral air services agreement. I am awaiting the outcome of those negotiations.
Ryanair applications for approval to operate on the Dublin-Manchester, Amsterdam and Paris routes, were refused last October on the grounds that market conditions did not warrant the introduction of an additional carrier on those routes.
More recently, Ryanair were given approval in principle for services between Dublin and five new European points, namely, Palma, Geneva, Luxembourg, Nice and Stuttgart and between Connacht Horan Airport and three UK points, namely, Birmingham, Manchester and Glasgow. I will be interested in watching the development of services on these routes.
Comment on this
Does the Minister regard it as acceptable that the lowest unrestricted fare on the Dublin-London route is now £95 while the lowest unrestricted fare from both Cork and Shannon to London is £240 and whether this amounts in practice to discrimination against people who would use and airport in the west or in the south as opposed to those who are in a position to use Dublin Airport? Will he take steps by licensing Ryanair, in introducing competition from Cork and Shannon, to reduce the unrestricted fare from those airports to something approximating to Dublin or at least pro rata to Dublin?
Comment on this
The question I was asked was about requests for services, not about fares which is a different question altogether.
Comment on this
I am in support of that and I want to tell the House that as my brief now covers both transport and tourism I will be committed to whatever action I can take in this Department to make fares as low as possible because I want as many tourists as possible into the country this year.
Comment on this
That is great news. Will the Minister now tell us about the other routes mentioned in the question — Dublin-Manchester, Dublin-Amsterdam and Dublin-Paris? I welcome his agreement with the necessity to reduce fares as much as possible but will he not agree that it is ridiculous, for example, that the return fare from Dublin to Liverpool or to Manchester is substantially higher than the return fare from Dublin to London even though London is much further away from Dublin than either Liverpool or Manchester? Since the advent of competition is the only factor which has in recent times caused a reduction in fares will the Minister immediately allow competition on those other routes so that fares will be reduced by the substantial amount by which they were reduced on the London route?
Comment on this
The Deputy has referred to the second paragraph of my reply. Applications were refused last October on the grounds that market conditions did not warrant the introduction of an additional carrier on these routes. I will be looking at this to see if market conditions now warrant the introduction of an additional carrier on these routes. I should like to take the opportunity of telling the House that I spent two hard days helping a past pupil of mine, the present Commissioner, Peter Sutherland, working in the Council of Ministers of Transport in Brussels on the question of a more liberal air transport policy and the reduction of fares, PEX and APEX. We discussed a general liberalising, particularly of fifth freedom rights, in the area of our transport.
Comment on this
Will the Minister agree that it is desirable that in this matter he should learn from his former pupil on the question of air fares rather than vice versa? Does the Minister not realise that the market between Dublin and Paris would be a very different one if somebody was allowed to provide a return fare of £200 as opposed to the present market where the unrestricted fare is in excess of £400? Will the Minister take steps to create a new market to bring many additional people into the country by allowing extra carriers on these routes and creating competition?
Comment on this
I should like to inform the Deputy that despite his omniscience in the matter the Commissioner indicated that he was still learning from me when we were working together on the same objective in Brussels on Monday and Tuesday last.
Comment on this
We are committed to the same objective and what puts an edge to my interpretation is the fact that I also have the Tourism brief now.
Comment on this
I am glad the Minister is capable of learning and I hope he has learned not to believe everything Deputy O'Malley says about air fares.
Comment on this
I accept there are routes where market conditions will not allow extra carriers but I hope the Minister will take the point that there should be some relationship on the fare per mile basis on all routes. Where he deems it not possible to license additional carriers will the Minister consider introducing a fare regime on a fare per mile basis similar to that on routes where there is competition?