Ryanair calls for growth fund

Published on Tuesday 20 October 2009 22:07

AN AIRLINE "growth fund", which Ryanair said would accelerate its expansion in Scotland by one million passengers, is to be considered by ministers.

Ryanair said its proposal would help to offset air passenger duty and comply with competition laws, unlike the former Scottish Executive's route development fund, which was axed.

Michael Cawley, the Irish airline's deputy chief executive, said the fund would increase Ryanair's passengers in Scotland by 1.5 million within three to four years, compared with the extra 400,000 that it already planned.

The expected growth is at Edinburgh airport, where Mr Cawley said Ryanair remained on course to base a fifth aircraft next spring, which would create "a few extra routes".

But he said the fund would see 15-20 new Ryanair routes at both Edinburgh and Prestwick, along with expansion at Aberdeen and Inverness.

Mr Cawley, who met finance secretary John Swinney in Edinburgh yesterday, said the fund would be eligible to all airlines in return for passenger growth.

The previous route development fund, ended when the SNP came to power in 2007, had restrictions, such as being open only to airlines launching new routes.