Ryanair's commitment
It has been some time since I joined the debate on the future of Malta's tourism and the role which low cost airlines can play in its development. However, recent statements by the Federation of Associations of Travel and Tourism Agents require some...
It has been some time since I joined the debate on the future of Malta's tourism and the role which low cost airlines can play in its development. However, recent statements by the Federation of Associations of Travel and Tourism Agents require some clarification.
Specifically, Ryanair does not claim to assign all its seats on any single flight at its lowest fare. We do, however, have an average fare which is 35 per cent lower than that of Easyjet and 70 per cent lower than that of British Airways, reflective of widespread availability of extremely low fares across our entire network.
Secondly, neither our advertising nor publicity campaigns are misleading. All our fares are quoted inclusive of taxes and charges except in countries like Italy, where all airlines are permitted to, and do, advertise exclusive of taxes.
Thirdly, the transparency of Ryanair's website, Ryanair.com, is well known and all taxes, charges and fees are explicitly shown in the booking process. Furthermore, there is no charge for distribution or any commissions paid to travel agents such as those charged by the members of the Federation of Associations of Travel and Tourism Agents.
Certainly, Ryanair applies a credit card handling fee, however, it pales into insignificance compared to the fuel levies charged by all the high fare carriers, some of which amount to 40 per cent of Ryanair's average fare. Needless to say Ryanair does not impose a fuel levy.
The importance of through tickets for visitors to Malta is negligible. Virtually 100 per cent of the visitors to Malta are visiting the island and are not in transit. As such, the lack of interline facilities or through fares is completely irrelevant.
Ryanair does not seek preferential treatment in Malta. We are merely asking that the charges at Malta International Airport be on a par with those available to us at similar airports throughout Europe. We are also seeking that these charges be the same for any other airline that reaches similar passenger number targets as we are prepared to commit. There's no question of not having a level playing field; Ryanair is a child of competition but believes in fair competition. In that context it is important to point out that Malta is in competition for the millions of passengers that Ryanair will carry in the coming years. Our passenger target for next year is 42 million, a growth of seven million on our expected outcome of 35 million in the year ending today.
If the proposal that we've currently given to the government is accepted, then Ryanair can deliver literally millions of extra passengers and tourists to Malta over the next five years.
The contention that much of this increase in passenger numbers will be at the expense of high fare carriers and "tour operator commitment" is incorrect. Our historical experience elsewhere is that nothing could be further from the truth.
In reality, once fares are lowered in a market, passenger numbers increase for every airline in the market, even the high fare incumbents that are forced, by competition, to lower their fares.
As to employment predictions, these are also made with the value of historical experience elsewhere. Can I also suggest that both the quality and quantity created by Ryanair will be at least as high as those that may be lost in either distribution or high fare airlines and, most importantly, on the basis of the success of Ryanair, the jobs are far more sustainable.
Finally, Ryanair's commitment to Malta will be as solid as its commitment elsewhere. Our track record has been one of 25 per cent compound annual growth since 1991, meeting all our targets and expectations at every new airport and base which we launch.
If the costs at Malta International Airport, including handling, can be competitive with those available throughout the rest of Europe, then Ryanair's commitment to Malta will reflect that record of traffic growth and economic success it has delivered elsewhere.
Mr Cawley is Ryanair's chief operating officer and deputy chief executive.