Ryanair will open its first base in continental Europe at Charleroi, in Belgium, from which it will operate flights to the Republic, Britain, France and Italy.
Ryanair chief executive Mr Michael O'Leary said yesterday he expected the company to open a new European base every year. There was no limit to the number of bases which could be opened by Ryanair in the coming 10 years, he said.
The company will initially base two aircraft in Charleroi, south of Brussels. Overall, Ryanair will operate 30 flights per day to and from seven destinations. The number of aircraft based at the airport will increase to four next year. The new routes start on April 26th. The company has said it will cut the prices being charged by Sabena, the Belgian state airline, out of Brussels by between 80 per cent and 90 per cent.
It is understood the Walloon regional government has agreed a deal whereby Ryanair can land at Charleroi "practically for free" for the next 20 years. It will also receive training grants.
The decision to base the operation at Charleroi was taken following extensive negotiations with the airport authority and the Walloon government, which owns the airport. It followed strong competition from airports in Germany, Italy and Sweden, according to Mr O'Leary.
He said the Charleroi aircraft and routes "are a direct loss to Dublin and Ireland, where they would have been based if a competitive cost base was available".
The new service is to include flights to:
Dublin (four return flights per day from £39 one way);
Shannon (one - £39);
London Stansted (three - £19);
Glasgow Prestwick (one - £39);
Carcassone, in the south of France (two - £49);
Pisa (two - £49);
Venice (two - £49). Mr O'Leary said half the 1.5 million seats from Charleroi annually would be sold at the lowest air fare. He expects one million passengers to travel with Ryanair to and from Charleroi during the first year. Ryanair currently carries about 250,000 people per annum between Dublin and Charleroi.
Charleroi is 50kms south of Brussels. Ryanair is the only provider of a scheduled service from the airport, which it has been operating since 1997.
Mr O'Leary said Ryanair now owned 36 aircraft, would own 43 next year, and 50 the year after that. The decision as to where these new aircraft would be based would depend on the level of charges at Irish airports.
"If they keep saying no, then we will keep putting aircraft in continental Europe," he said, referring to negotiations with Aer Rianta and the Government.
He said the charges negotiated with Charleroi were "very significantly cheaper" than the £9 per passenger charge which exists in Dublin. He would not give a figure.
A spokesman for Sabena said it monitored prices being offered by competitors but that this would be only one factor when it came to making decisions on price. "We fly to 100 destinations," he said. "We fly to Brussels itself, not Charleroi." Sabena offered a quality product with more space, better catering and better entertainment than Ryanair. "We have a saying in Belgium," he said. "Do not compare an apple with a pear."
The decision by Ryanair to have a base at Charleroi will create 150 jobs in Ryanair, and is expected to lead to 1,000 indirect jobs in Belgian tourism and service sectors.
Speaking at Shannon after the announcement of the new services, Mr David O'Brien, Ryanair UK operations manager, said: "I believe that the new Brussels direct service will be as successful as the Frankfurt route, where we carried 70,000 passengers to and from Germany which exceeded all our expectations." Seventy per cent of the fares had been at the low cost rate, he added.
