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Ryanair chief hits at PSO subsidies

Michael O'Leary - War of words over Kerry costs
Michael O'Leary - War of words over Kerry costs

Ryanair says it carried 6.84 million passengers in September, up 12% on the same month last year. The load factor, or percentage of seats filled, rose by one point to 86%.

Meanwhile, Ryanair chief executive Michael O'Leary has said Public Service Obligation (PSO) subsidies for regional air routes are no longer sustainable. He was speaking on RTÉ radio.

Ryanair and the Minister of Transport Noel Dempsey are engaged in a war of words over the details of the PSO contract Ryanair has to operate the route between Kerry and Dublin.

Ryanair plans to reduce the service at the end of this month as a result of the row. The airline says the subsidy the Government pays it to operate the route no longer covers its costs, but the Minister says it was never intended that the airline would receive increased payments to cover increased costs.