Sir, - We applaud your Editorial of July 29th which correctly identifies that Ireland is a nation heavily dependent on tourism. Much of the recent success of the tourism industry is due to competition between the airlines, which has transformed the UK market in particular by making Ireland a low cost, easy-to-get-to destination.
Unfortunately the Aer Rianta monopoly represents a far greater threat to the health of our industry than Bord Failte. Thanks to Mrs O'Rourke's intervention, a low cost-base at Dublin Airport has been maintained until the end of this year. Immediately thereafter, Aer Rianta will try again to substantially increase costs at Dublin, thereby driving up air-fares and access costs to Ireland. The Government can only protect tourism from such a monopoly by opening it up to competition.
The facilities at Dublin Airport are inadequate, overcrowded, and ludicrously expensive. They are a testament to the failure of the Aer Rianta monopoly. The Irish taxpayer - through Aer Rianta - is investing heavily in hotels and airports in Birmingham and Dusseldorf, yet we are subjected to Third-World facilities at this nation's principal airport.
Ryanair has submitted a proposal to the Government which would see us finance and build a second terminal at Dublin. Immediately after its construction we will hand this building, free of charge, back to Aer Rianta to own and manage. In return we would obtain a long-term low cost-base, save Aer Rianta from the capital expenditure, launch at least 10 new routes from Continental Europe to Ireland, carry over 1 million additional visitors to/from Ireland, and create over 500 jobs. These proposals would save the Government money, increase the traffic and tourism growth to and from Ireland, extend Ryanair's low-fares formula into European markets such as Germany, Italy, France, Spain and Scandinavia (where Ireland is perceived to be a high-cost, low-value destination), create new jobs and transform Ireland's tourism industry for the next millennium.
In recent years competition has transformed Ireland's airline sector, our telecommunications industry, our bus services, health insurance and broadcasting. Even the ESB will shortly be in a competitive environment. Competition will transform our airport infrastructure by improving facilities and lowering costs. Aer Rianta now needs a similar discipline. Why not introduce competition now at Dublin? The facilities will be improved, the costs will fall, and low fares to a wide range of European cities will underpin the continuing success of our tourism industry. - Yours, etc.,
Michael O'Leary, Chief Executive, Ryanair, Dublin Airport.