Another war of words has developed between Ryanair CEO Michael O’Leary and the Chairman of the Dublin Airport Authority over proposals to increase passenger services in Shannon.
Mr O’Leary claims that the DAA has rejected its offer to grow passengers at Shannon by 1m in the next five years.
The DAA has claimed Ryanair’s demands that Shannon pay €4.70 for every new passenger were unreasonable and would be financially ruinous for the airport.
Speaking at a Shannon Chamber business lunch in Shannon this afternoon, DAA Chairman David Dilger said the authority does not have a deal with any airline to pay them to bring in passengers.
'In fact, it is legally prohibitive, and is not economically sustainable,' he said.
Mr Dilger added that a range of discounts and incentives are available to all airlines including Ryanair, but the company's terms to increase passengers at Shannon are simply not sustainable.
He said Shannon Airport was in a much better financial position now than it was at the height of the last Ryanair five-year deal because it has attracted new airline services that are economically sustainable.
Mr Dilger said Shannon had a loss of €8m last year, but that its losses this year would be less, and the DAA was well on its way to making it more financially sustainable by 2012.
Mr O’Leary turned up at the hotel in Bunratty Hotel where the Shannon Chamber lunch was happening to hold an impromptu press conference to dismiss the DAA's claims, even though he had arranged a formal press conference in Limerick city later this afternoon.
