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Ryanair demands lower costs amid 'recession'

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    Date: Tuesday 14 Oct 2008

    LONDON (ShareCast) - Irish budget airline Ryanair has called on the European Commission (EC) to reduce costs on airlines to help the industry cope with what chief executive Michael O’ Leary describes as a Europe-wide recession.

    O’ Leary called on the EC to replace the ‘complicated and inefficient’ air traffic management systems operating in Europe.

    He also demanded that passenger compensation provisions should be replaced with a ban on airline overbookings.

    'The European Airline Industry is now facing a greater challenge and a more difficult trading environment than any time over the past 50 years,” he said.

    “The European economy is in recession, consumer confidence and spending has collapsed and we need real leadership from the EU Commission if we are to keep Europe flying and keep delivering lower fares with no fuel surcharges for Europe's consumers.”

    O’ Leary also suggested that the EC reconsider its opposition to Ryanair’s offer for its Irish rival Aer Lingus in 2006.

    “Europe is moving towards a small number of big strong airline groups which is the only way these airlines can survive the current financial turmoil and to provide passengers with real choice of air services into the future,” he said.

    “Surely if Alitalia and AirOne can be combined to form a strong airline group in Italy, then it's time to allow Ryanair and Aer Lingus to combine to form one equally strong Irish airline group.”

    The EC said in 2006 that Ryanair’s takeover of Aer Lingus would raise ‘serious competition concerns’.

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