EIGHT BANKS TO PAY €17.6m IN IRISH STRESS-TEST COSTS - Eight banks in Ireland will have to pay €17.6 million between them to meet the costs of the comprehensive assessments that have been conducted this year by the European Central Bank to review their assets and test the resilience of their balance sheets to certain stress situations. The assessments are part of a pan-European review by the ECB, in conjunction with the European Banking Authority, in advance of the Single Supervisory Mechanism coming into effect in November, says the Irish Times. The SSM is set to assume supervisory control for euro zone banks from the end of this year. In total, 127 banks across Europe are being tested. In Ireland, the costs will be met by AIB, Bank of Ireland, Ulster Bank, Permanent TSB, KBC Bank Ireland, ACC, Merrill Lynch International and Depfa. The Irish costs relate largely to work carried out by Ernst & Young, KPMG and Deloitte on behalf of the regulators. It is understood that the Central Bank of Ireland believes this to represent good value for money, with the Irish costs thought to be lower than in many other countries involved in the assessments.
***
RYANAIR'S PLAN FOR DUBLIN-RUSSA ROUTE LAUNCH THIS YEAR PUT ON ICE - Ryanair has ditched plans to fly between Dublin and St Petersburg in Russia this year. The commercial director of Northern Capital Gateway, the company that operates St Petersburg Pulkovo airport, said that it had received formal notification from Ryanair that it will not launch the route in 2014. That decision comes as Ryanair yesterday started taking delivery of the first of 180 Boeing aircraft it ordered last year. Ryanair chief executive Michael O'Leary was on hand at Dublin Airport to welcome the aircraft from Seattle. Ryanair had expected to be in a position to launch flights from Dublin to St Petersburg this autumn, writes the Irish Independent. It has also been eyeing a service to Moscow. Ryanair was granted permission last year by Russia's federal air transport agency, Rosaviatsia, to operate the routes as of March this year. But speaking to the Independent last month, Mr O'Leary claimed the delay in launching the routes to Russia was because tourism funding support hadn't been forthcoming. "Services from Ireland to Moscow and St Petersburg would be very successful," said Mr O'Leary. "But they're long flights and they would be a relatively low fare for a couple of years while you're building them up," he added.
***
AER LINGUS REGIONAL AXES SHANNON-MANCHSTER SERVICE - Aer Lingus Regional has confirmed that it is axing its Shannon to Manchester service from the end of next month but has denied it is because Ryanair will begin operations on the same route, reports the Irish Examiner. Stobart Air (formerly Aer Arann) the franchise flying partner to Aer Lingus, will cease operations between Shannon and Manchester on October 27, the day after Ryanair commences services on the same route. However, Stobart Air has said its decision is not connected with the Ryanair move but according to sources, the airline is “disappointed” that Shannon allowed another airline on the same route. The news comes as Aer Lingus Regional experienced its third successive record-breaking month in August with an increase of 49% in passenger numbers at Shannon for the month. The airline currently operates a three times daily service to Manchester using an ATR42-300 turbo prop aircraft capable of carrying 48 passengers. While Ryanair will operate a single daily flight, their Boeing 737-800 jets can carry almost four times as many customers on that one flight.
***
BOOM IN UK HOUSING MARKET EASES - The excess froth in the UK housing market, particularly in London, looks to be dissipating as the market returns to a more stable outlook, says the Financial Times. New buyer inquiries fell for the second month in succession in August and the number of agreed sales declined for the first time since September 2012, according to the Royal Institute of Chartered Surveyors. The statistic captures the experience of surveyors at the start of the buying process so is considered one of the best forward looking indicators of the market. Rics said the overall picture was of a return to a “less volatile market” with more stable price expectations. A net balance of 9% of those questioned are expecting prices to rise rather than fall during the next three months, down from a balance of 51% at the start of the year. The booming London market, where prices over the past year have increased at roughly double the rate seen in the rest of the country, also appears to be cooling, with another dip in new buyer interest in August. Simon Rubinsohn, chief economist at Rics, said there were increasing signs that London was moving on to a more sustainable footing, with a modest increase in the number of instructions coming on the market helping to create a better balance with demand and “taking the edge off price gains”.
