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Airlines In Subsidy Spat

6 April 2010 No Comment

Leading airlines Thomas Cook and Ryanair have become embroiled in a spat via the pages of Travel Weekly, the leading industry news website.  With Thomas Cook claiming that the Spanish government and airport authority AENA are effectively subsiding Ryanair to fly to the Canaries – and that they may be forced to withdraw their flights to the islands in protest as a result.

Thomas Cook are claiming that the waiver of airport taxes and charges by the Spanish government last year has effectively handed Ryanair a subsidy worth €6.50 per passenger.  Whilst Ryanair have responded by stating that the subsidy is available to all airlines flying to the Canaries and Thomas Cook should simply apply to join the scheme.

This argument is a little disingenuous however as these ‘discounts’ are only available on new capacity and for flights during off peak periods.  Which makes Thomas Cook flights ineligible.  And as a long term charter partner of the Canary Islands Thomas Cook feel disgruntled by the increased competition on this route from Ryanair and somewhat betrayed by the current courting of Ryanair and other low cost airlines by the Canary Islands Tourist Board. Resulting in their threat to concentrate on other markets such as Turkey and Egypt instead.

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