Lack of Aer Lingus commitment to Irish market very worrying
Posted on September 10, 2010 at 12:01 PM
The announcement by Christoph Mueller CEO of Aer Lingus, at the Leinster Society of Chartered Accountants, that there will be no growth in Aer Lingus passenger capacity in Ireland next year is extremely worrying.
Air traffic into and out of Ireland declined by a massive 40% over the last two years and according to Mr. Mueller Aer Lingus is trying to escape the Irish market wherever they can. This policy retrenchment and abandonment of the Irish market spells disaster for the Irish economy.
Twenty one million passengers travelled through Irish Airports last year compared to 30 million in 2008. Every passenger that enters Irish Airspace is a potential customers and the loss of nine million passengers over the last two years has had a huge negative impact on the economy and on levels of unemployment.
Growth in tourism is an obvious and crucial mechanism for tackling the present recession. Aer Lingus is now a private airline and its only commitment is to its shareholders. It has now "adopted the low cost model entirely" in the words of Mr. Mueller and is moving to the higher end and more profitable sectors of the market with a consequent reduction in volume. That maybe good news for shareholders but not for the Irish people. An island nation needs a strong aviation policy focussed on bringing in the maximum number of passengers not just into Irish airspace but into Irish shops and restaurants. The 10 euro passenger tax and the 40% increased airport charges are a huge determent to the Irish Tourist Industry.
The ordinary punter will only travel abroad if the cost is reasonable. Ireland is a wonderfully attractive tourist destination once the price is right. It is incumbent on the Minister for Transport to put together an aviation policy that will facilitate the increase in passenger numbers to pre-crisis levels and not stand idly by as airlines simply reduce their capacity.
