Ryanair calls on Polish Government to reverse air traffic control cost increases

Ryanair Profile

 As part of its entry into the EUROCONTROL family, Polish air traffic control organisation, PANSA, chose to “rationalise” its billing and specifically in its implementation of EU regulation 1794/2006, PANSA has chosen to offer substantial discounts for overflying traffic while increasing the charges for traffic landing and taking off Polish airport by 960%. In addition, PANSA is now proposing a further 40% cost base increase for the coming year. Consequently PANSA is subsidising travel to the economies of Russia, China and the Far East at the expense of the economic development of Poland. At a time when the airline industry is under unprecedented financial pressure and the economic stimulant effect of aviation on the Polish economy is well proven, PANSA has decided to levy an unjustified and unwarranted tax of €20m on airlines flying into and out of the country.
 
Announcing Ryanair’s response to this tax in Warsaw today, Ryanair’s Deputy Chief Executive, Michael Cawley, said:
 
“As the Polish government struggles to further develop the economy, one of its own state enterprises has decided to implement policies that are in direct contradiction to this objective. PANSA’s move to increase air traffic control charges on passengers travelling to and from Poland tenfold will have massive detrimental effects on the economy of the country, reducing levels of activity and stopping growth.  In an additional dose of fantasy, they are proposing further increases of 40% next year.
 
“Ryanair calls on the Government to reverse this idiotic decision by PANSA which is set to stifle economic development and reverse the growth of passenger traffic through the country’s airports.
 
“For its part, Ryanair has decided to stop all negotiations with airports in Poland on the development of any bases as this cost increase has made many of the prospective and actual routes economically unviable. Consequently there will be no Ryanair base in Poland until this issue has been satisfactorily addressed and we are today suspending negotiations with five cities in that regard.   As Poland’s second largest airline, which has delivered compound annual growth of 50% in each of the last 3 years and now has 2.3m  passengers in Poland, we have always emphasised the need for better efficiency and lower costs to support the growth of aviation and the economic benefits which follow as a consequence. This unwarranted and unprecedented level of increase by PANSA is unacceptable and runs contrary to the objectives of economic development of the Polish government.
 
“Ryanair will develop its business where costs are reducing and competitiveness is increasing and, for the moment, that does not include Poland”.
 

(c) Centre for Asia Pacific Aviation. Date posted: 25-Jul-08

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