RIGA - Latvian Transport Minister Ainars Slesers has admitted that Ireland's Ryanair low-cost airline could become the largest operator at Riga airport, eclipsing national carrier airBaltic.
"I do not deny that Ryanair could become the largest airline here in the future as this will depend on how aggressively airBaltic will develop its business and how Ryanair will operate. But I think that Ryanair could reach in Riga what they have reached in Dublin," Slesers told BNS, adding that Ryanair has almost 75 direct flights operating out of Dublin.
Slesers added that, although it has not been explicitly stated, there are talks planned concerning Ryanair's development of its company base in Latvia, including increased flight numbers.
"Ryanair has larger aircraft. Ryanair has a long-term agreement on delivery of new airplanes from Boeing. They will receive new airplanes with 189 seats. This will cause serious problems to airBaltic. I think Ryanair could operate as many flights from Riga as it operates from Dublin," said the minister.
Slesers added that his task as a minister is to provide for high levels of competition in the air transport industry, regardless of the fact that the Latvian government holds a majority stake in airBaltic.
"It does not matter how much the airlines earn, it is important how much the state will earn," said Slesers.
"It is important for me to ensure that Latvian residents, both tourists and businessmen can travel to and from Latvia for the cheapest price [and] to ensure that there are as many direct flights from and to Riga as possible. We will work on launching flights to smaller towns as well. It is important for the airport to become the largest one [in the region]" he added.
Airport data show that airBaltic and Ryanair served the largest number of passengers to and from Riga airport in the first seven months of 2007, amounting to 44 percent and 26 percent of all passengers respectively. The market share of the Latvian carrier has increased by 3.8 percentage points, while Ryanair's share has declined by 0.5 percentage points.
Ryanair management said that it could open a base in Riga, but that any such move is contingent on the development of the airport. The investment of Ryanair in its base could amount to 300 million US dollars. Ryanair has 19 base airports in Europe but does not have any permanent bases in Poland and the Baltic States at present.
Ryanair started its operations in Latvia on October 31, 2004. Currently the company operates eight flights from Riga airport with four more due to commence in the next year.
