Ryanair Wins Right To Challen

RNS Number : 0698D

Ryanair Holdings PLC

09 September 2008

 



RYANAIR WINS RIGHT TO CHALLENGE EXCESSIVE KNOCK SUBSIDY

Ryanair, Europe's leading low fares airline, won the right today (Tuesday, 9th September 2008) to challenge the award of the PSO subsidy on the Knock - Dublin route to Aer Arann. Ryanair is seeking an explanation why its offer of a smaller subsidy, lower fares and triple the passenger numbers for the Knock route was rejected in favour of Aer Arann's larger subsidy, higher fares and fewer passenger numbers.

The High Court in Ireland has granted Ryanair's application for a judicial review of the decision of the Department of Transport following the unlawful award of a PSO (Public Service Obligation) contract for the Dublin to Knock route to Aer Arann, following Cityjet's announcement that it would not serve the route.  Ryanair today underlined that the Minister should have called for a new tender process in order to comply with European Regulations on the grant of PSOs but failed to do so.

Ryanair had offered to serve this route for a much lower subsidy and with over 3 times the seat capacity but the Department rejected the offer without having carried our a new tender.

Speaking today, Ryanair's Director of Legal & Regulatory Affairs, Jim Callaghan, said:

'Following Cityjet's announcement that it would not fly the Dublin - Knock route, Ryanair immediately offered to serve this route for a much lower price to the taxpayer and with over 3 times the passenger numbers.  However the Department rejected this offer and unlawfully granted the PSO to Aer Arann without calling for a new tender.

'Ryanair has been a vocal critic of the Department for Transport's waste of taxpayer funds in the area of PSOs and this is the latest example.  We are delighted that the High Court has granted our request to challenge this unlawful decision.

'At a time of economic downturn, it is high time that the Department for Transport stopped wasting taxes on grossly inflated PSOs by supporting the subsidy junkie Aer Arann, which does not publish accounts yet continues to receive massive state subsidies. The Department must instead choose the value for money option - Ryanair!'

Ends.                            Tuesday, 9th September 2008

For further information:

Stephen McNamara                     Pauline McAlester

Ryanair                                         Murray Consultants

Tel: [phone]                 Tel: [phone]

 

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