SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of May, 2004
RYANAIR HOLDINGS PLC
(Translation of registrant's name into English)
c/o Ryanair Ltd Corporate Head Office
Dublin Airport
County Dublin Ireland
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F..X.. Form 40-F.....
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange
Act of 1934.
Yes ..... No ..X..
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- ________
AER RIANTA'S POOR RESULTS
HIGHLIGHT THE FAILURE OF MONOPOLY
AND THE NEED FOR COMPETITION
AT DUBLIN AIRPORT
This afternoon (Wednesday, 26th May 2004) Aer Rianta will release its (already
leaked) financial results for 2003, and these again highlight the failure of the
Aer Rianta airport monopoly and the urgent need for competition at Dublin
Airport. These results which mark the last full year under the mismanagement of
Chairman, Noel Hanlon, prove that the Aer Rianta airport monopoly is lagging
behind its industry peer airports by failing to attract low fare traffic growth
(like London Stansted airport), and by failing to control costs which has
decimated its profitability.
1.Traffic Growth
During the past 5 years (1999-2003) traffic at Dublin Airport has grown at a
compound annual rate of just 6% compared to 26% for London Stansted, Ryanair's
other main base. This woeful rate of growth at a time of unparalleled economic
prosperity in Ireland lags way behind the traffic growth delivered at comparable
airport peers such as London Stansted, London Luton (15%), Liverpool (31%) and
Glasgow Prestwick (26%), all of whom have stimulated rapid low fare traffic
growth with low fare carriers such as Ryanair and Easyjet.
Annual Rate of Traffic Growth
Aer Rianta Dublin London Stansted
1999 +9% 98/99 +35%
2000 +8% 99/00 +33%
2001 +4% 00/01 +23%
2002 +5% 01/02 +14%
2003 +5% 02/03 +19%
Average 6% 25%
The reason why the Aer Rianta monopoly has failed to deliver significant traffic
growth at Dublin Airport is because it has spent the last five years increasing
costs to the airlines and passengers (whilst other airports are reducing prices)
and at the same time wasting hundreds of millions of pounds building unnecessary
gold-plated facilities (like EUR80m on Pier D & EUR140m at Cork Airport).
2.Profitability
These declining profits prove once again just how inefficient and mismanaged the
Aer Rianta airport monopoly is. The Irish Aviation Regulator two years ago
declared Aer Rianta to be "50% more inefficient than the best of its peer
airports".
During the 10 year period of the present Board's mismanagement;
-actual charges paid by the airlines at Dublin have more than doubled,
-carparking charges suffered by consumers have more than tripled and,
-traffic at Dublin has doubled from 6.9m in 1994 to 15.9m in 2003,
-yet annual profits have halved
Airline users at Dublin Airport now pay the highest actual charges than at any
midsized airport in Europe. These high charges have deterred quantum growth in
low fare air traffic, as the Aer Rianta monopoly has repeatedly rejected
Ryanair's offers to double traffic at Dublin Airport and has failed to attract
other large low fare, high growth airlines such as Easyjet. During this decade
despite charges to the airlines having doubled, the daily cost of carparking to
passengers having trebled and profits at the airport monopoly have collapsed
from EUR40m in 1994 to EUR20m in 2003. Aer Rianta's net profit margin during
Noel Hanlon's Chairmanship has collapsed from 16% in 1994 when he joined the
Board to just 4.5% in 2003. During the same period profits at the BAA operated
airports rose by over 50% from GBP240m to GBP374m.
Year Aer Rianta BAA Plc
Profits EUR Margin Profits GBP Margin
1994 EUR37.5m 16% GBP240m 21%
2003 EUR20.0m 4% GBP374m 20%
There is only one solution to this monopoly mess and that is competition. The
Government has been promising legislation in competing terminals at Dublin
Airport for over two years now. Every deadline made by Bertie Ahern's Government
has been missed, meanwhile the Aer Rianta airport monopoly has been doubling
costs to users, failing to control costs and as a result both profits and
margins have collapsed. These shocking results prove it's time that this
Government finally proceeded with a competing second terminal at Dublin and put
an end forever to the inefficiency and incompetence of the Aer Rianta airport
monopoly.
Ends. Wednesday, 26th May 2004
For further information
please contact: Paul Fitzsimmons Pauline McAlester
Ryanair Murray Consultants
Tel. 353-1-8121212 Tel. 353-1-4980300
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
RYANAIR HOLDINGS PLC
Date: 26 May, 2004
By:___/s/ Howard Millar____
H Millar
Company Secretary & Finance Director