Ryanair Impact on Fuerteventura Future

Low-cost airline Ryanair has announced it will close all of its routes to and from Fuerteventura, in the Canary Islands, from 31st January 2009 unless local tourism group AIE honours its commercial agreement it reportedly signed to promote Fuerteventura as a tourist destination.

Ryanair said it will close all services to and from Fuerteventura including Birmingham, Bremen, Dublin, Dusseldorf (Weeze), East Midlands, Frankfurt, Liverpool, London and Shannon from 31st January if agreement is not reached on the alleged contract breaches before 6th December.

The airline said that since Ryanair began flying to Fuerteventura in 2006, annual passenger numbers have increased over “one hundred fold” from just 2,000 to over 250,000. However, Ryanair said because of the AIE’s alleged breach of its agreement, one of its Dublin flights to Fuerteventura was cancelled from 6th November.

“Ryanair again calls on the AIE to honour its contractual agreement or lose Ryanair’s flights and traffic to and from Fuerteventura from 31st January 2009,” said airline spokesperson Michael Cawley. “Ryanair’s lowest fares and no fuel surcharge have delivered huge tourism revenues and over 250,000 annual passengers may now be lost to and from Fuerteventura. At a time when Spanish tourism numbers are falling, Ryanair’s numbers continues to grow. However, the AIE continues to threaten the livelihoods of the local tourism industry by blatantly reneging on its contractual commitments. Ryanair has served 30 days notice to the AIE to comply with its contractual agreements. If they refuse to do so then we will have no choice sadly but to end all Ryanair flights to Fuerteventura from 31st January”.

Ryanair confirmed that legal action against AIE and its individual members will continue for breach of agreement. The AIE has so far declined to comment on the situation.

David Healy, managing director, of Fuerteventura-based agency Island Real Estate International SL, said that the immediate flight cancellations, and talk of a general suspension, has already had an affect on the Canaries.

“We have already had a couple of clients suspend their interest already until the situation is confirmed and it is going to get worse,” he said. “The property industry in the Canaries relies on budget airlines, as opposed to all inclusive packages, as it forces visitors to rent or buy a property in the area. One of our buyers rented out his property nearly every week last year and he is very concerned now over this news. After XL Airways went it was not as big a problem as they could use Ryanair, however, this is doubly annoying as the flights were all full. If they weren’t making money then fair enough, but everyone of my clients reported just one or two empty seats per flight to the Canaries.”

Story from OPP (registration required)

Like this? Then share with your friends and colleagues!