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Ryanair cuts flights - 18 July 2008

Budget airline Ryanair is to ground a portion of its fleet and temporarily cut back on some routes in preparation for a bleak winter trading period. Weak consumer demand and high oil prices are partially to blame, but the airline’s colourful chairman laid much of the responsibility at the door of airport operator BAA.

The plans to scale back services through the quieter winter months are likely to result in the loss of some 150 jobs at Ryanair, some of which will come through the introduction of a new automated check-in service which has been planned for months.

According to Ryanair chairman Mr. O’Leary, 15 of the 43 aircraft based at its hub in Stansted will be grounded from November until March in preparation for lower passenger volumes through the winter months. This is common practice among airlines, but Ryanair is having to ground eight more aircraft than last year as fuel prices bite into profit margins and passenger numbers. In addition, four of the 22 aircraft based at Dublin airport are to be grounded for the winter as part of the anticipated seasonal cutback of capacity.

Passenger numbers at Stansted alone are expected to drop by 900,000 during this period, and Ryanair has blamed BAA for it having to cut more flights than usual, as the airports operator has refused to cut landing charges in the face of the economic downturn. Ryanair had asked BAA for a ‘reasonable’ reduction of 100 per cent in landing fees to cover the winter months. Industry experts have suggested the more dramatic reduction in flights and aircraft over the winter are a newly-assertive stance in negotiations with the airport operator.

The routes which are set to give way over the winter are to Basel, Budapest, Krakow, Rzeszow, Salzburg, Valencia and Palma, although there will be some new ‘winter sun’ destinations added to take advantage of those who wish to get out of the winter weather in the UK. None of the suspended routes are expected to be dropped on a permanent basis, just for the quietest period of the year.

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