RYANAIR may decide to move its expansion out of Ireland alter the Government turned down its proposal to develop a new commercial airport at Baldonnel, the leader of the Progressive Democrats, Ms Mary Harney, has predicted.
The Baldonnel decision "comes on top of the fiasco over the proposed National Conference Centre," she said. "Having sought and received 14 tenders, at great expense to the participants, the Government abandoned the competition mid way.
"Following the Government's decision, it would be no surprise Ryanair decided to concentrate its expansion elsewhere."
Ms Harney said "We have now succeeded in creating a political climate which is hostile to the development of private business. Every effort is being made to protect the States monopoly in many sectors and this is a totally unacceptable way for a Government to behave in a modern, democratic economy," she said.
Dr Ryan confirmed that he has suspended all expansion plans for Ryanair in Ireland following Mr Lowrys decision on Baldonnel. "Ryanair must now reassess totally its future plans and its Dublin base," he said.
Meanwhile, the Air Transport Users' Committee (ATUC) of the Chambers of Commerce of Ireland said it was disappointed by the Government's decision not to proceed with the investigation of Baldonnel as a second Dublin airport. Aer Rianta should be privatised, ATUC said, and the airports at Dublin, Shannon and Cork should be operated by separate, competitive managements.
The three State airports operate within a monopoly that makes judgment of value for money impossible, Mr Tadhg Kearney, the ATUC chairman, said. Mr Kearney wrote last November to Mr Lowry, urging that Aer Rianta be subject to competition.
Mr Kearney argued that the advent of Ryanair had triggered real competition and real price wars, which had benefited consumers and boosted the economy through the increase in tourism. The competition had also helped Aer Lingus to take a more commercial view of its operations.
"There has been no similar movement with regard to the three State airports," Mr Kearney said. "Who can say if Aer Rianta does or does not do a good job? Who can assert that their charges could not be lower? There is no benchmark against which they can be fairly judged."
"In rejecting the Baldonnel option put forward last summer by Ryanair Mr Lowry on Wednesday defended Aer Rianta's charges. He said that the views of the Ryanair chairman, Dr Tony Ryan, on the alleged high cost base" at Dublin Airport were, not borne out by recent studies.