independent

Wednesday 16 April 2014

Dublin loses to Stansted as Ryanair seals deal in expansion plan

Ryanair CEO Michael O'Leary

DUBLIN has lost out to Stansted as Ryanair has selected the London hub for a surge in passenger growth.

The airline said it had secured a 10-year deal at Stansted to double the amount of its passengers travelling through the airport in return for lower costs and more efficient facilities.

The agreement will account for up to 25pc of Ryanair's five-year growth plans to 2019.

The airline's chief executive, Michael O'Leary, said the deal would see more than 7,000 new jobs created at Stansted over a five-year period.

"Ryanair is pleased to have agreed a new 10-year growth deal at London Stansted with Manchester Airport Group (MAG)," Mr O'Leary said.

"This deal will see our Stansted traffic grow by over 50pc, from 13.2 million in 2012 to over 20 million per annum in return for lower costs and more efficient facilities at Stansted."

CONTACT

It comes just over a month after it emerged that Ryanair had stalled talks with Dublin Airport to deliver millions of extra passengers.

The airline's deputy chief executive, Michael Cawley, told the Irish Independent that Ryanair had engaged in fresh negotiations with the Dublin Airport Authority (DAA) after a new chief executive, Kevin Toland, took up his role earlier this year.

But at that point he claimed there had been no contact for some weeks and that Ryanair was focusing its efforts on Stansted. Mr O'Leary said that the talks had "pretty much ended".

Ryanair expects its Stansted traffic in year one of this 10-year deal to grow from 13.2 million to over 14.5 million.

MAG's chief commercial officer, Ken O'Toole, said the deal secured an exciting era for both Ryanair and the airport.

"Today's announcement, coupled with our £80m (€95m) investment in the terminal, confirms that Ryanair shares our confidence, and shows how we are succeeding in transforming Stansted under new ownership," Mr O'Toole added.

Irish Independent

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