Ryanair has submitted a tender to Government to fly civil servants to Brussels, according to the airline's chief executive, Mr Michael O'Leary. He claims it currently costs the taxpayer around £3 million a year to ferry Government employees to Belgium with Aer Lingus, but Ryanair could do it for under £1 million.
It is understood that the Government recently put its travel business for the various departments out to tender. Mr O'Leary said the company had submitted the tender yesterday. He said the return cost would be approximately £100 per passenger on the Ryanair service, which operates three times per day. The civil servants, politicians and Ministers as well as European Parliament members using the Ryanair service would enjoy its "no-frills benefits - no breakfast, no peanuts, but as much drink as you want, as long as you pay for it". Last night Government sources played down the Ryanair bid, saying that the airport Ryanair flies into, Charleroi, is about one hour from the centre of Brussels. "Ministers often have a tight schedule and must be in and out of the city in a day," said one source. "Charleroi is alright if you are a tourist with time on your hands."
Mr O'Leary was speaking yesterday after he addressed the Spring Lunch of the Institute of Bankers in Dublin.
Mr O'Leary pledged that Ryanair fares would not rise if duty free was abolished. He said the argument that air fares would rise if duty free was abolished, used by lobby groups such as Aer Rianta, was false.
Mr O'Leary said it was an excuse for Aer Rianta, the State airports operator, to pass on the costs to the consumer. He said for Ryanair duty free accounted for about 10 per cent of operating profits and the company was working hard to reduce its cost base and find other ways of making up the difference, if duty free was abolished.
Mr O'Leary reiterated his previous proposal for Ryanair, or someone else, to build a new terminal at Dublin airport, saying competition was needed in this sector.
He claimed that Ryanair could build a terminal for £10-25 million, and was currently paying Aer Rianta £10 million per year. He said there was acute congestion at Dublin Airport and a new terminal was needed.
Aer Rianta had spent £25 million on new facilities, including developing Pier C last year, he said. This had resulted in two new departure gates and the extension of the duty free area, although duty free could be lost by 1999.
Meanwhile, Mr O'Leary said the possible introduction of certain changes to the fuel system wiring and vents by Boeing will cost the airline around $75,000 (£53,000) per aircraft. The airline has 20 such aircraft and Boeing may insist on the changes. It follows the TWA Flight 800 crash in 1996 when a Boeing 747 exploded off New York, killing 230 people on board. Mr O'Leary said if the changes were mandatory then the airline would carry them out. He seemed unperturbed about the costs which Ryanair would have to carry itself.
