Jobs to fly abroad unless Govt changes policy - Ryanair

Ryanair said today that none of 3,000 new jobs arising out of its multi-billion euro deal with Boeing are likely to be in Ireland…

Ryanair said today that none of 3,000 new jobs arising out of its multi-billion euro deal with Boeing are likely to be in Ireland.

The company said unless the Government changes its policy and allows it build a second low-cost terminal at Dublin airport the benefits of the expansion would accrue elsewhere.

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Sadly none of the jobs will be in Ireland unless we get a new policy from the Government.
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Ryanair’s Mr Michael Cawley

Earlier, the airline announced it had ordered 100 Boeing 737 aircraft and taken options for 50 more in a deal worth €10.2 billion.

The company said the deal would quadruple its fleet and allow it carry up to 40 million passengers by 2010, making it the biggest airline in Europe.

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The expansion will require 800 new pilots and 2,000 cabin crew as well as 400 engineers and operations staff.

However, Ryanair’s chief financial officer, Mr Michael Cawley, said: "Sadly none of the jobs will be in Ireland unless we get a new policy from the Government."

Mr Cawley said the jobs, not just in Ryanair but also in the auxiliary industries such as tourism, could be delivered to Ireland if the Government allows it build and operate its own terminal.

Ryanair believes the most effective way to achieve a low cost base is to have it’s own terminal. This would allow it avoid the charges levied by Aer Rianta for the use of its recently expanded terminal.

The 100 new 737-800s aircraft are scheduled to be delivered to Ryanair, which has an all-Boeing fleet, beginning in 2002 and continuing until 2010, Boeing and Ryanair said in a joint statement.

"We have found through experience that the 737 provides the unbeatable cost economies and reliability you need to be a profitable low-fare airline," Ryanair chief executive Mr Michael O'Leary told reporters.

Analysts believe the carrier achieved very attractive pricing on the aircraft, with a discount of perhaps 30 per cent, exceeding even the routine price cuts that civil-aircraft manufacturers offer.

Ryanair is one of the few airlines in a position to buy aircraft at the moment, as the industry suffers from over-capacity created by a global economic slowdown and the impact of the September 11th attacks on travel markets.

It has gone on the offensive in recent months, seeking to exploit the malaise of the national flag carriers, which have seen bookings fall sharply since the September 11th suicide assaults on the United States.

The order is a significant boost for US Boeing, which has seen its order book overtaken by that of European rival Airbus.

Additional reporting AFP

Eoin Burke-Kennedy

Eoin Burke-Kennedy

Eoin Burke-Kennedy is Economics Correspondent of The Irish Times