Friday, August 18, 2006

Ryanair 'does not have a case'

Times Online August 18, 2006

Michael O'Leary, chief executive officer of the popular low-cost European airline Ryanair, said the situation at British airports is still far from normal due to what he called "farcical" new security measures.

Ryanair’s threat to sue the Government for compensation has little legal merit and is motivated by the low cost airline’s fears for its long term survival, according to leading aviation lawyers. "It’s nothing more than a bit of sabre-rattling because Ryanair is petrified of what the new security measures will do to its business if they are made permanent," one lawyer told Times Online.

That is apparently the view of The Times's aviation lawyers and as a previous customer of cheap EU airlines I do not see why UK taxpayers should have to pay to subsidise Ryanair which is not even a UK airline and is in competition with BA.

Good for the Government ! Make Ryanair pay its own bills or confiscate its airplanes and take away its slots if it cannot look after its customers as it promises. People have to realize that a venture is a venture and firms like Ryanair should not rely on the Government to hold their hand, like a nanny guiding a small child. To do so probably would have even turned Maggie Thatcher puce, in her palmier days. Enough money has already been wasted on such subsidies, e.g. on the water companies who in some cases have simply put money intended for reticulation improvement, straight into the pockets of foreign shareholders. The Govt should be seriously hard on these airlines and save taxpayers some money. I think it was Reg Ansett who once said about Butler of Butler Air Transport: "The guy should be cracking rocks!". And that is how airlines operate, harsher than Enron. The UK must still retain some face against foreign opposition in a difficult market.

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