Ryanair seeks cash to boost growth

Return of funding scheme could lead to new Aberdeen and Inverness routes, government told

By Ian Forsyth

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Budget airline Ryanair said yesterday it could increase passenger numbers by 1.5million a year in Scotland if a funding scheme for new routes was restored.

Aberdeen and Inverness are among the airports Ryanair would be interested in using for new services to Europe.

The firm’s deputy chief executive, Michael Cawley, held talks with Finance Secretary John Swinney in Edinburgh yesterday and called for Scottish Government assistance to help airlines boost growth.

The route development fund (RDF) was scrapped soon after the SNP came to power in 2007 after helping establish more than 30 new routes.

Ryanair has submitted a proposal to Mr Swinney aimed at increasing the number of routes and passengers at Scottish airports.

Mr Cawley said yesterday: “Ryanair’s proposal will see the government offer any airline which commits to growing Scottish passenger numbers with route development support, mirroring a very successful scheme which operated from 2002 to 2007.”

The airline boss said this would help counteract the “damage inflicted” on Scottish tourism by the £10 air passenger duty and return the industry to growth.

Mr Cawley said he had outlined a number of proposed new routes the airline wanted to establish during a “positive” meeting with Mr Swinney.

He added: “Ryanair is the only major airline growing capacity, traffic and routes in Scotland this year.

“We can replicate our successes at airports such as Edinburgh, Glasgow and Aberdeen, placing the local tourism industry back on a growth path, while at the same time creating and sustaining up to 1,500 jobs.”

The Irish carrier said passenger traffic at Scottish airports was down by 1million on the first eight months of this year, compared with the same period in 2008.

Mr Cawley said he was “very interested” in plans to extend the runway at Aberdeen Airport.

The airline currently only has one route from the Granite City, to Dublin.

Mr Cawley said: “A longer runway would allow us to fly farther afield. Aberdeen is massively under-served in terms of low fares.”

He said a variety of European destinations could be reached from Aberdeen, and also from Inverness.

Ryanair now runs no services out of Inverness.

A Scottish Government spokesman said later: “The Cabinet secretary had a useful meeting with Ryanair.” Mr Swinney would consider his proposal “in due course”.

Green leader Patrick Harvie branded Ryanair’s move a “shameless bid for a bung” from taxpayers.

He added: “Back in 2007, we made it clear that we wouldn’t support the SNP’s budget unless they scrapped this outrageous aviation subsidy, and I’m glad to say that they accepted that.

“Any reversal of that decision would put the Scottish Government in the pocket of Ryanair and would make a mockery of Scotland’s climate-change targets.”