When Rents Went Up, Airline Gave Up on Staying at Dublin

CityJet says it's a matter of supply and demand: the airline's demand for space and access at Dublin, Ireland isn't high enough to meet the management's new rate schedule. The airline, owned by Air France, is moving its BAe 146 fleet, and its service, to a non-Aer Rianta airport, at Swords.

Things changed, fast.

Last year, in early February, Aer Rianta was pleased to make public a report of one Professor Regis Doganis, on Aviation and Tourism Issues. In a press release, Aer Rianta noted that the report "... confirms:

• Aer Rianta's airport charges are among the lowest in Europe when compared to those of other major European airports
• There is no evidence that airport charges have a significant effect on traffic growth and development of new routes
• Lower airport charges for low-cost carriers would be discriminatory"

Apparently, management had a change of heart, and, faced with lowered traffic overall, decided to raise rates. Now BizWorld says, "Cityjet has claimed its recent decision to move its headquarters to Swords was taken after Aer Rianta attempted to more than double rents at the airport." The reported rate increase was in the neighborhood of 140%.

CityJet's CEO, Geoffrey O'Byrne-White also noted that parking costs at the airport were "prohibitive."

Mr. O'Byrne-White also mentioned that he didn't think it was fair to give breaks to some airlines, and not others, a result of Ireland's policy of "incentivising" some businesses.

FMI: www.aer-rianta.ie; www.cityjet.com (temporarily down)