Travel Daily News
ONDA breaks agreement on costs
Friday, June 29, 2012
Announcing the reductions, Ryanair’s Deputy Chief Executive, Michael Cawley said; “Ryanair entered into long term agreements with the Moroccan Tourism Authority and ONDA, as part of the Moroccan Govt’s 5 year plan to grow tourism. Ryanair has spectacularly over-delivered on all its undertakings under these agreements, becoming Morocco’s second largest airline and ensuring the Moroccan Govt achieved its 5 year targets within an earlier timescale. It is regrettable that ONDA has now lost sight of the key to the success of our partnership, offering low fares based on low costs. Ryanair cannot accept cost increases as it seeks to deliver more growth to Morocco. It is completely unacceptable for ONDA to increase the cost of Ryanair’s operation in Morocco and unrealistic for them to expect us to continue to grow our business in that context.
Consequently I regret to announce that we are making these substantial reductions which will result in up to 100,000 less tourists annually and an annual loss in tourism expenditure and job losses for the Moroccan economy of 50m. euros. Ryanair will now allocate this capacity elsewhere to the many markets earnestly seeking Ryanair’s growth and that are offering long term, sustainable cost bases to underpin Ryanair’s guaranteed low fares.”
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