AIR PASSENGER RIGHTS & COMPENSATION FOR FLIGHT DELAYS

The unprecedented delays experienced by European air travellers in recent days has focussed attention on passenger rights. On 11th February 2004, the European Parliament established common rules on compensation and assistance to passengers in the event of denied boarding and of cancellation or long delays of flights. These rules are referred to as Regulation No 261 and came into force on 17th February 2005. While I have every sympathy for stranded passengers, the legislation really does place a disproportionate burden on airlines, particularly when European airspace is shut down for consecutive days. Those who wish to access the relevant legislation can click here

ASH WEDNESDAY & RYANAIR

What a relief that Irish airspace has finally re-opened (Wednesday 21/4/10) following the massive disruption caused by the plume of volcanic ash from Iceland. We were briefly reminded of what it was like in the 1980's, when travel journey times from Ireland to mainland Europe took up to 3/4 days. We really do take air travel very much for granted these days and ought to be very grateful to the person who facilitated this. Thank you Michael O'Leary.

AIRLINE ANNOUNCMENTS - JANUARY 2010

There was some interesting news from airlines serving Ireland in the first month of 2010 - On the down side.........

• BMI said it will close its aircraft base at Dublin from March 28th. This will reduce the current daily flight schedule to London Heathrow from six per day to four
• Ryanair will also cut the number of aircraft based in Ireland from March 28th. It will base three fewer planes in Dublin (18 to 15). This will reduce its traffic at Dublin Airport from 8.7 million passengers to 6.5 million in the year to March 2011. At Shannon airport, it will base just one aircraft compared to four last year. As a result, passenger numbers are anticipated to fall from a peak of 1.9 million to just 400,000 in 2010. These significant reductions will have a very detrimental effect on tourism revenues this year

On the up side.........

• Continental Airlines announced that it will add four flights a week on its Shannon to Newark route from May 28th to September 8th
• Aer Lingus will increase the number of routes it offers between Ireland and the UK through a new franchise agreement with Aer Arann. Branded Aer Lingus Regional services and sold on Aer Lingus's website, the routes will be operated by Aer Arann. The move will generate greater traffic from Bristol. Blackpool, Cardiff, Doncaster/Sheffield, Durham, Glasgow, Edinburgh and Jersey airports to Dublin and Cork

Separately, Aer Lingus rebranded itself as 'Ireland's Civilised Airline'. This is part of a plan to re-position itself somewhere between low-cost Ryanair and and full-service carriers such as British Airways. Many visitors will welcome the 'civilised' journey Aer Lingus is now promising. Now imagine if genuine hospitality was offered as well? Perhaps it might consider embracing Tourism Ireland's excellent 'Shine' campaign which was launched last year!

THE NEED FOR A NEW IRISH AVIATION POLICY

Prior to 2004, Dublin, Cork and Shannon airports were managed by Aer Rianta. Under this umbrella body, these airports did not compete directly with each other and were deemed to be inefficient. It was hoped that the introduction of the State Airports Act 2004 would rectify this, but alas, it has not.

The purpose of the 2004 Act was to provide the necessary legislative basis for the restructuring of Aer Rianta and the establishment of Dublin, Cork and Shannon Airports as independent authorities under state ownership. Under the Act, the Dublin Airport Authority (DAA) assumed responsibility for all the assets, liabilities and contracts of the former Aer Rianta. The Board of the DAA transferred significant day-to-day operational responsibility to the Boards of the Cork and Shannon Airport Authorities. In time, both these authorities were to have the assets of Cork and Shannon Airports vested in them and assume full responsibility for the management, development and operation of their respective airports. Almost five and half years since the Act was introduced, this has still not happened. The Dublin Airport Authority still manage Cork & Shannon Airports. So all that has really changed is the name!

Meanwhile, passenger numbers through Shannon Airport have declined by 24% in the past two years. Add in six regional airports (plus three in Northern Ireland) and it is clear that the island of Ireland has too many airports. Perhaps it's time to re-think our aviation policy.

REDUCTION IN AIR SERVICES TO IRELAND

The news that CityJet is cutting its service from Shannon to Paris from October 24th is very disappointing. It follows decisions by Delta and Aer Lingus to suspend respective services from New York and Chicago to Shannon this winter. In Dublin, Aer Lingus services to Washington & San Francisco are also being cut. At the same time, Ryanair is reducing capacity by 20%. Given the current climate, the fear is that these services may not resume next year. Could 2010 be even more difficult for the tourism sector than 2009?

PASSENGER CHARGES AT DUBLIN AIRPORT SET TO INCREASE

In addition to the €10 air travel tax introduced at the end of March, the aviation regulator is set to determine that passenger charges at Dublin Airport will increase by 13% in 2010 to €8.35. The current charge is €7.39. Further increases in passenger charges are likely when Terminal 2 opens. At a time when passenger numbers are falling, the focus should be on finding ways to stimulate travel rather than penalise it.

IRISH TOURISM MARKET IS NOW MORE IMPORTANT THAN EVER

The news that Aer Lingus is facing a loss of €100m this year following a fall in revenue of 16% is not good for the tourism sector. The speculation that a number of routes may be axed is bad enough. The idea that it will be forced to adopt the full Ryanair model is perhaps even more worrying in the longer term. While I am a great admirer of Ryanair, I don't like flying with them on my holidays. What if the choice of travelling to Ireland in a few years time is 'Ryanair' or 'Ryanair'? How many people would really want to come? It is clearly time to nourish the domestic market as never before......fully embrace the growing family market segment, support the ever expanding surfing community, put value centre stage - on trains, on buses, in taxis, in entertainment, on food (we're getting better) and drink (long way to go) etc ......and of course get all organisations with an interest in the sector (including the government) to cast aside individual aspirations and work together for the collective good.

A WEEK OF RESIGNATIONS - Dermot Mannion, Aer Lingus & Paul O'Toole, Tourism Ireland

It has been an unexpected week for Irish tourism interests with the news that Dermot Mannion and Paul O'Toole both resigned from their positions as CEO of Aer Lingus and CEO of Tourism Ireland respectively. Both men have made very significant contributions to the development of Irish tourism. Dermot Mannion expanded the Aer Lingus route network into Ireland, opened up new markets and made it easier for more visitors than ever to get here. The hope is that, despite the current climate, Aer Lingus will be able to retain most of these services. Paul O'Toole has done a superb job at Tourism Ireland. Formed in the aftermath of the Good Friday Agreement, it has punched way above its weight in marketing the island of Ireland in the hugely competitive international tourism marketplace. There is no doubt that whoever suceeds them will have a difficult task in the changed environment we're now in.

NEW LIFE IN THE LONG-HAUL, LOW-COST MODEL?

Following the demise of Zoom Airlines and Oasis Hong Kong last year, both long-haul, low-cost carriers, I would have thought that signalled the end of that particular model, at least in the current climate. But no! AirAsia X , a franchise of Air Asia, launched flights from Kuala Lumpar to London Stansted on March 11th last. Airfares are approximately 20% cheaper than those offered by Malaysian Airlines. I'm just wondering how many people really want to travel low-cost for up to 13 hours and how Air Asia X might succeed where others have failed?