Aer Rianta will ask the Competition Authority to investigate alleged anticompetitive behaviour by Ryanair following the withdrawal of Go from routes between Ireland and Scotland.
The UK-based low-cost carrier said yesterday it was abandoning routes from Dublin to Edinburgh and Dublin to Glasgow after less than two months because of "extreme levels" of competition from Ryanair. The Irish budget carrier responded by blaming high operating costs at Dublin Airport for Go's departure.
A spokesman for Aer Rianta said the airport operator would ask the Competition Authority to investigate whether Ryanair had abused its dominant position in launching new routes to Scotland in order to undercut its British rival. A Go spokesman said the airline did not plan to make a complaint of its own and wanted to concentrate on new routes from East Midlands Airport.
"Go's services to Scotland are very popular, with high load factors, but extreme levels of competition with Ryanair have meant that the routes would take much longer than planned to become profitable," the company said yesterday. Go reduced its fares from £45 (€57) return to £20 return in response to aggressive pricing by its Irish rival.
Aer Rianta was more forthright in its criticism, saying Ryanair "launched services on the same routes with the sole purpose of putting its competitor off the routes". Ryanair pulled capacity from three other routes in order to undermine Go, according to the airport company.
Similar tactics were used by Ryanair following the launch of services by Virgin Express from Shannon. "Ryanair had stated that it would never again operate out of Shannon, but decided to launch services specifically targeting Virgin. The result was the subsequent decision by Virgin to cease its Shannon services," Aer Rianta said yesterday.
Aer Rianta also wants the Go decision investigated "as a matter of urgency" by the Ad Hoc Interdepartmental Group on Visitor Issues set up in the wake of the September 11th attacks on New York and Washington. The group is charged with addressing the expected shortfall in visitors to Ireland next year - particularly from the US - as a consequence of the attacks.
The group has already made a number of recommendations, including lower landing fees at Dublin Airport and dedicated facilities for low-cost carriers. These have been rejected by Aer Rianta on the basis that they would have a detrimental impact on Shannon and Cork airports. The airport operator also argues that facilities at Dublin will be adequate once its construction programme is complete next March.
Ryanair said it was disappointed with Go's decision. Mr Michael O'Leary, chief executive of the Irish budget airline, said it would not be cutting back on the frequency of its services to Scotland or increasing fares in the wake of Go's departure. He said the airline was unfazed at the prospect of an investigation by the Competition Authority.
"The thought of our airport monopoly making a complaint to the Competition Authority fills me with joy and wonder," he said.
The underlying reason for Go's withdrawal was the high cost of operating out of Dublin, he claimed. Go competed with Ryanair on routes out of Stansted near London, although Ryanair offered lower fares, he said. "The difference is costs at Dublin," he added.
Ryanair has offered to start 10 new routes to Europe from Dublin and Shannon next year, if the Government lets it build its own terminal at Dublin. The airline hopes for a decision by Christmas.
