Thu, Mar 06, 2003
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.
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