We’ll go abroad and jobs will be lost if green list isn’t expanded, warns Ryanair
The budget airline will warn a Dáil committee today that airlines will ultimately move their assets to countries where there aren’t restrictions in place. Ryanair has called for the immediate inclusion of all 27 EU countries and the UK on the green list so that Ireland can reopen for business travel.
In a scathing criticism of the Government’s current travel restrictions, Ryanair will say that the green list has done more harm than good and will continue to have a ‘severe, detrimental effect’ on the airline and tourism sectors, and lead to further job losses.
‘Ryanair recently cancelled 1,000 flights between Ireland and the UK and allocated that traffic elsewhere, more of that is to come, not just in Ryanair but inevitably every other airline that currently operates in and out of Ireland,’ the airline says in its opening statement.
It also warns that if airport charges aren’t reduced then more people will lose their jobs.
‘The Government should offer incentives in the form of cuts to airport charges in all airports across Ireland for the next three years,’ it says
‘If Ireland doesn’t act now with incentives to attract traffic this winter and for next year and beyond, then airlines will plan accordingly and migrate that traffic to the other 27 EU countries and the UK where there will be incentives to increase traffic, but more importantly – no travel restrictions.’
Last week, the Covid Committee heard that Aer Lingus could be wound up without State aid or an easing of travel restrictions.
Evan Cullen, president of the Irish Airline Pilots’ Association said that the airline was spending €1.5 million a-day with little or no revenue coming in.
Ryanair has reported a loss of €185million for the three months to June 30 as passenger numbers fell by 99% due to Covid-19 travel restrictions.
This compares with a profit after tax of €243milion for the same period last year.
Its key recommendation at today’s committee is for the expansion of Ireland’s green list to every country in the EU, including the UK.
‘The idea that the major economies of Europe are not dealing effectively with Covid-19 will do huge damage to our relations with those countries,’ the airline says in its opening statement.
‘Ireland is an integrated part of the EU economy and if we lose this opportunity to restart, then we will pay for it with economic decline and massive increases in unemployment.’
‘We have now cut ourselves off from the largest economies in Europe, Germany, France, UK, Spain, Austria, Netherlands, Poland and telling them that Ireland is closed for business.
‘Germany for example was excluded from Ireland’s green list, when Germany’s death rate from Covid-19 per head of population is 70% less than Ireland’s.
‘The green list has done more harm than good and will continue to have a severe, detrimental effect on the airline and tourism sectors, which have already been financially devastated by the collapse of business due to the Covid-19 pandemic.
This will lead to further job losses, on top of the significant number of jobs that have already been lost.’
The low-budget airline will also blame the media for promoting a ‘self-congratulatory’ narrative in relation to tackling the virus.
‘A completely unsubstantiated narrative has developed that the only fool-proof plan is to close our borders for business with our major trading partners.
‘Even the WHO have advised that Covid-19 will be with us for years to come,’ the statement continues.
‘We should urgently put our efforts into how we will manage the risks, inevitable breakouts and clusters, rather than the current policy of an illusory utopian longterm elimination of Covid-19, that simply isn’t going to happen.’
Meanwhile, Dublin and Cork Airports are facing significant losses and an uncertain future amid plummeting passenger numbers.
A representative from the Dublin Airport Authority (DAA), the company that operates both airports, will tell the Special Covid Committee today that remaining open, with minimal traffic, results in losses of around €1million per day.
‘Our best estimates are that passenger levels will fall to 9million from 32.9 million last year in Dublin and to less than 1million in Cork, from almost 2.6million last year,’ insisted the representative.
‘Worryingly, almost every expert is predicting a slow and protracted recovery for the industry.’
The semi-state company also expresses concerns that Dublin faces strong competition from other airports of its size overseas.
It also warns that Cork Airport faces particular challenges, including maintaining a level playing field with its national competitor airports.
It is now calling on the Government to extend its state aid for Cork Airport and increase airport charges to ensure their ongoing sustainability. ‘Cork Airport plays a critical role in serving the South of Ireland. It requires specific support as its revenue base has all but disappeared. A specific mechanism will be required to offset essential operating costs and incentivise route development.
‘Cork should also be admitted to the existing Regional Airport Capital Funding Programme. Pre-Covid, DAA experienced a high demand for capital expenditure, however airport charges have continually been lowered by the regulator (22% in 2019) making our charges well below the level of most peer airports.
‘This comes at a cost of lower or slower investment and unnecessary financial risk or instability.
‘We believe that a more supportive pricing model will be required as we move forward especially post Brexit and with commitments to a Green Deal policy framework.’
‘Ryanair has has a loss of €185m’ ‘A slow recovery is predicted’