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Ryanair threatens to cut Prestwick routes
Budget airline Ryanair has threatened to cut routes at Prestwick amid a sharp downturn in aviation.
The Irish no-frills operator said all 28 routes from the Ayrshire airport were "under review" following talks held yesterday with management to discuss performance.
Maria Macken, Ryanair's UK marketing executive, said that relocating routes to other airports in Europe was a likelihood unless further support could be offered to the airline.
She blamed passenger taxes levied by the government for putting pressure on Ryanair's operating costs, claiming the airline was susbsidising the price of its tickets.
"We're having to lower our fares in order to get people flying. But that's not sustainable," she said.
"If we feel we can get better value elsewhere, we will do that. If we can operate for less, we will do that. That's why we're calling on the airport and government to get rid of costs."
Prestwick, which along with Edinburgh is one of two Scottish bases used by Ryanair, saw a 9.6% reduction in passenger numbers in January, compared with the same month last year, amid a steep downturn in aviation.
While this has affected airports across the UK, Ryanair's position at Prestwick contrasts with Edinburgh, where it last week announced the addition of 10 further European routes.
The airline has carried out a campaign against the Airport Passenger Duty tax in the UK, which is due to increase from £10 to £11 per-passenger, per-flight, in November.
It last month announced that it was axing routes and jobs at Dublin Airport, blaming the Irish government's imposition of airport taxes. Ryanair also said last week's announcement to launch three new bases in Italy was due to the lack of airport taxation there.
Any reduction of routes would be particularly damaging for Prestwick, which in January announced a cost-cutting review which could see a reduction in its 500-strong workforce.
A spokesman for the airport said yesterday: "We support Ryanair's view that Air Passenger Duty is having a hugely damaging effect on passenger activity, particularly as the global economic downturn continues, and we would welcome any moves to reconsider it."
However, he stressed that decreasing passenger numbers were affecting airports across the UK.
In November, Ryanair announced that it was pulling out of Blackpool International Airport, blaming charges levied by the airport, prompting a 63% slump in year-on-year passenger numbers in January.
However, aviation analysts questioned whether Prestwick could offer further incentives to its main commercial carrier, given the tight margins it operates on and comparatively low airport charges it levies, compared to Glasgow, Edinburgh and Aberdeen airports.
Iain Smith, commercial director at consultancy RDC Aviation, predicted that Ryanair's long-term passenger numbers were still likely to grow. He said: "Although Ryanair may make slight alterations to their destination network from Prestwick it is unlikely that there will be any significant decreases in overall traffic. If anything further expansion to other popular Ryanair airports could be expected over the next few years"
Meanwhile, British Airways announced yesterday it is to sell 11 of its 15 Boeing 757 aircraft, with the planes leaving the airline's fleet between 2010 and 2012.
Four 757s operated by BA's subsidiary carrier OpenSkies, which flies from Paris and Amsterdam to New York, will remain in the fleet. The 757s will be replaced in BA's short-haul fleet by planes from the Airbus A320 series.
Source
Budget airline Ryanair has threatened to cut routes at Prestwick amid a sharp downturn in aviation.
The Irish no-frills operator said all 28 routes from the Ayrshire airport were "under review" following talks held yesterday with management to discuss performance.
Maria Macken, Ryanair's UK marketing executive, said that relocating routes to other airports in Europe was a likelihood unless further support could be offered to the airline.
She blamed passenger taxes levied by the government for putting pressure on Ryanair's operating costs, claiming the airline was susbsidising the price of its tickets.
"We're having to lower our fares in order to get people flying. But that's not sustainable," she said.
"If we feel we can get better value elsewhere, we will do that. If we can operate for less, we will do that. That's why we're calling on the airport and government to get rid of costs."
Prestwick, which along with Edinburgh is one of two Scottish bases used by Ryanair, saw a 9.6% reduction in passenger numbers in January, compared with the same month last year, amid a steep downturn in aviation.
While this has affected airports across the UK, Ryanair's position at Prestwick contrasts with Edinburgh, where it last week announced the addition of 10 further European routes.
The airline has carried out a campaign against the Airport Passenger Duty tax in the UK, which is due to increase from £10 to £11 per-passenger, per-flight, in November.
It last month announced that it was axing routes and jobs at Dublin Airport, blaming the Irish government's imposition of airport taxes. Ryanair also said last week's announcement to launch three new bases in Italy was due to the lack of airport taxation there.
Any reduction of routes would be particularly damaging for Prestwick, which in January announced a cost-cutting review which could see a reduction in its 500-strong workforce.
A spokesman for the airport said yesterday: "We support Ryanair's view that Air Passenger Duty is having a hugely damaging effect on passenger activity, particularly as the global economic downturn continues, and we would welcome any moves to reconsider it."
However, he stressed that decreasing passenger numbers were affecting airports across the UK.
In November, Ryanair announced that it was pulling out of Blackpool International Airport, blaming charges levied by the airport, prompting a 63% slump in year-on-year passenger numbers in January.
However, aviation analysts questioned whether Prestwick could offer further incentives to its main commercial carrier, given the tight margins it operates on and comparatively low airport charges it levies, compared to Glasgow, Edinburgh and Aberdeen airports.
Iain Smith, commercial director at consultancy RDC Aviation, predicted that Ryanair's long-term passenger numbers were still likely to grow. He said: "Although Ryanair may make slight alterations to their destination network from Prestwick it is unlikely that there will be any significant decreases in overall traffic. If anything further expansion to other popular Ryanair airports could be expected over the next few years"
Meanwhile, British Airways announced yesterday it is to sell 11 of its 15 Boeing 757 aircraft, with the planes leaving the airline's fleet between 2010 and 2012.
Four 757s operated by BA's subsidiary carrier OpenSkies, which flies from Paris and Amsterdam to New York, will remain in the fleet. The 757s will be replaced in BA's short-haul fleet by planes from the Airbus A320 series.
Source
