Dáil Éireann debate -
Thursday, 4 Jun 1998

Vol. 491 No. 7

Written Answers. - State Aid to Ryanair.

Eamon Gilmore

Question:

105 Mr. Gilmore asked the Minister for Public Enterprise the plans, if any, she has to review the agreement made by her Department in regard to the rebate of rent payable on the Ryanair head office at Dublin Airport, particularly in view of the very substantial profits the company has been making for many years; when it is expected that the full annual rent will become payable; the reason the full rebate was given to a company (details supplied) which was controlled by persons (details supplied) if, as has been suggested, the rent rebate was intended to assist a struggling airline; if her attention has been drawn to the fact that this company continued to charge Ryanair rent of £200,000 in each year from 1992 to 1996 resulting in these persons being the principal beneficiaries of the arrangement; and if she will make a statement on the matter. [13195/98]

Minister for Public Enterprise (Mrs. O'Rourke)

I set out the full position concerning the rental agreement in relation to the Ryanair head office at Dublin Airport in my comprehensive statement to the House on 26 February 1998. I should point out that this agreement, which was vetted by Aer Rianta's legal and financial advisers, represents a commercially sound arrangement from the point of view of the State.

The position is that full annual rent will apply from 2010 for the duration of the lease. The agreement is a commercial one and is not unique. On expiry of the lease, Ryanair will surrender full and vacant possession of the site and building in good and substantial repair to the State. Finally, the business arrangements between the two companies referred to by the Deputy are a matter for those two companies.

Eamon Gilmore

Question:

106 Mr. Gilmore asked the Minister for Public Enterprise the annual cost of the rebate given by Aer Rianta to airlines which operated new scheduled services since 1994, by airline; if she will give details of the impact of the rebate on passenger traffic and its impact on Aer Rianta's investment plans for Dublin Airport in terms of added congestion, accelerated spending and the poor return on this investment when so many passengers are using the facilities without being paid for by the beneficiary airline. [13196/98]

Minister for Public Enterprise (Mrs. O'Rourke)

The information sought by the Deputy is set out in the following table and includes airlines which operated new scheduled services or which achieved growth traffic on existing routes.

These discount schemes have contributed positively to the growth of traffic at the State airports from 9.3 million in 1994 to 13.4 million in 1997, an increase of 43 per cent. Over this period, air travellers and all the commercial companies in the Irish aviation sector have benefited considerably from these growth conditions. The schemes have helped airlines to keep fares low. Improved financial performances by the airports and the airlines have been the result. These aviation conditions have in turn been a major driver of the performance of our tourism sector over this period.

This unprecedented growth in air traffic has resulted in a need to accelerate the capital development programme at all three airports.

Aer Rianta Growth Discounts on Airport Charges 1994-97

	1994	1995	1996	1997
	£	£	£	£
Aer Lingus	2,532,241.37	3,948,549.05	6,411,815.54	8,221,263.88
Ryanair	2,083,217.56	4,403,919.89	7,138,474.73	9,337,150.78
BA City Flyers	183,895.29	333,113.33	560,811.30	990,778.18
British Midland	319,304.12	533,439.10	1,049,341.74	1,223,353.30
City Jet	309,561.42	478,833.22	519,041.21	752,355.11
SAS	28,858.92	129,401.95	152,878.22	290,168.58
Manx Airlines	172,814.84	270,341.98	296,821.64	349,699.79
Lufthansa	52,919.88	128,007.95	160,305.33	135,616.05
Air France/Air Inter	17,447.54	41,975.72	84,565.26	20,488.66
Viva Air	17,769.48	63,390.03	–	–
Air Malta	14,583.09	29,634.41	15,734.21	12,728.10
Crossair	42,553.36	81,465.00	93,973.73	82,673.00
Corsair	–	–	–	18,000.00
Alitalia	48,269.14	99,911.37	195,890.99	165,527.69
Delta	38,860.94	64,596.40	122,108.99	125,851.35
Iberia	2,534.49	15,819.07	18,781.75	60,427.99
Sabena	1,511.20	11,199.80	21,648.04	15,944.92
Air South West	22,327.19	27,123.62	57,758.05	44,837.31
Euro Direct	22,649.87	–	–	–
ATS Vulcan	4,301.99	–	–	–
Loganair	8,330.48	–	–	–
Orient Air	530.10	–	–	–
European Airways	–	2,122.91	83.99	–
KLM	–	–	–	6,149.00
Lauda Air	–	10,805.81	–	–
A B Shannon	–	17,000.00	497,000.00	584,000.00
Hamburg Airlines	–	9,539.47	82,281.27	47,933.40
Aeroflot	–	8,962.19	5,075.09	4,716.56
Jersey European	–	27,843.46	45,802.04	54,905.20
EI Air Exports	–	–	18,658.90	13,358.61
Comed Aviation	–	–	3,467.34	238.27
Air Engiadina	–	–	3,126.60	40,787.66
World	–	–	26,000.00	–
Translift	–	–	–	–
Finair	–	–	–	79,015.15
Overall	5,924,482.27	10,736,995.73	17,581,445.96	22,677,968.54