RYANAlR's chief executive, Mr Michael O'Leary, said yesterday the real problem for Aer Rianta was its high cost base and monopolistic position rather than the prospective loss of duty-free sales in 1999.
Aer Rianta said this week the loss of duty-free sales would force it to increase its charges to airlines, and this in turn would oblige the airlines to charge higher air fares.
Mr O'Leary said the problem for Ryanair in trying to sustain low air fares was not the disappearance of duty-free in 1999 but rather the high costs at Dublin Airport.
Aer Rianta has rejected these claims, saying that its charges are among the lowest in Europe and new services are offered good discounts for the initial part of their operations. However, Mr O'Leary claimed yesterday that Ryanair's total payments to Aer Rianta in Dublin this year would exceed its earnings from on-board duty-free sales by over 40 per cent.
Mr O'Leary said if Aer Rianta was truly worried about the disappearance of duty-free sales and the consequent impact on air fares, it would be taking steps now to radically reduce its cost base at Dublin. "Unfortunately, this is not happening." he said.
Mr O'Leary asked why Aer Rianta was investing in other airports such as Birmingham when the facilities at Dublin Airport were overcrowded, with the attendant disruption to airline services.
On one issue Mr O'Leary is in agreement with Aer Rianta: "We will actively campaign for the extension of duty-free, which helps us to pass on low fares to customers", but this should not be allowed to mask the continuing problem of Aer Rianta's monopoly charges at Dublin".
Aer Rianta was host this week at a meeting of European airport chief executives in Ireland to coordinate a campaign to urge the European Commission to extend intra-European duly-free sales beyond 1999.