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APD partly blamed as EasyJet cuts flights
Thursday, 04 Sep, 2009
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Budget airline easyJet is to stop flying from East Midlands and cut flights from Luton by almost a quarter.
A formal 90 day consultation process has started with its crew at the two airports.
The airline will also consult on a reduction of the number of flight crew at Belfast, Bristol, Newcastle and Stansted. Total numbers were no detailed.
While the number of aircraft based at these airports is expected to remain stable, the move “aims to ensure the right crewing levels for future flying”.
There are sufficient opportunities within the network for all employees who are affected by today’s announcement, and it is EasyJet’s intention to redeploy as many as possible, a statement said.
The airline said its base at East Midlands has “remained stagnant” with three aircraft for many years.
Instead it is to “focus its assets on higher priority markets”.
The airline claimed a 25% rise in airport costs at Luton over the past three years has made the base “no longer competitive”.
A breakdown in negotiations with airport owner Abertis and the local borough council over fees has left the airline with “no alternative” but to re-locate 20% of its Luton flying programme.
EasyJet said the situation at both airports has been exacerbated because all flying from the UK, especially from regional bases like East Midlands, has been undermined by the rise in Airport Passenger Duty.
“APD in its current form is particularly damaging to regional airports which do not benefit from transfer passengers for whom APD is not applicable,” the airline said.
“EasyJet regrets the Government’s decision to backtrack on the reform of APD which would have made it an emissions-based tax rather than simply a blunt holiday tax.”
The airline will move aircraft to more profitable airports and expects that most will be redeployed to continental European bases.
Chief executive Andy Harrison said: “EasyJet is a pan-European airline, winning market share right across Europe, as demonstrated by another strong traffic performance in August.
“We are one of only a few airlines expecting to make a profit this year.
“A critical part of our success has been optimising the allocation of our aircraft across our 19 European bases. This means responding to airports with uncompetitive costs, as well as moving swiftly to seize opportunities as competitors retreat.”
He added: “I am deeply disappointed that Abertis and Luton Borough Council have not taken a more far-sighted approach which would have protected jobs at Luton.
“At a time when jobs are under threat in the town the airport should be an engine for growing employment, not a source of further unemployment. This can only happen, however, if the owner and the operator make the right commercial decisions and deliver a competitive cost base.
“In regard to East Midlands we cannot see a growing long term future and we have decided to move our assets to markets with better long term potential.”
“The rise in APD hits regional airports hardest and increases the pressure to move aircraft to mainland Europe. The Government seems to think that APD is a free lunch. It isn’t; it costs jobs in the UK.”
by Phil Davies
Phil Davies
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