Ryanair announces temporary closure of seven airport bases

RYANAIR SAID it was temporarily closing bases at seven airports in Europe and cutting back on the number of flights from Stansted airport this winter as part of a cost-cutting programme.

The low fares airline blamed high airport costs and record oil prices for its decision to halt operations for more than a month at Basel, Budapest, Krakow, Palma, Rzeszow, Salzburg and Valencia.

Costs at these airports are among the most expensive in Europe and far outweigh the potential revenue which passengers are prepared to pay, particularly during the off-peak winter period, the airline said.

With oil at $140 a barrel and fares lower in winter, it said it was forced to reduce flights at more expensive airports.

Ryanair said it had written to the airports seeking a reduction on the costs of flights from these airports this winter but their response was wholly inadequate.

"A combination of high airport charges and the massive increases which we face in fuel prices, makes it more profitable for Ryanair to ground aircraft rather than fly them at these airports during this period," said Ryanair's deputy chief executive Michael Cawley

"Low airport costs and local support are required to sustain these operations, particularly through the low yielding months in the winter. In the absence of this support, Ryanair has no alternative but to cancel these routes and develop its business elsewhere."

The airline also unveiled plans to substantially cut capacity at Stansted for the winter. It said it was cutting the number of aircraft based at Stansted by eight from 36 to 28, while there would be a 14 per cent reduction in the number of weekly flights from more than 1,850 per week last year to just under 1,600 this year.

Ryanair said the rising price of oil and high operating costs at Stansted were the prime reasons behind the cut in capacity. It said the British Airport Authority (BAA), which owns and operates the airport, had increased airport charges by 15 per cent this year, on top of a 100 per cent increase last year. Ryanair's request for a major discount on airport charges was rejected, the airline added.

BAA said the nature of the budget airline industry meant that routes and flight schedules change all the time. "It is up to Ryanair, as with the BAA, to make the right decisions for their companies at times like this, and the massive hike in oil price is obviously a major influence in decision-making," it said.

BAA said it had met Ryanair but would not conduct commercial negotiations in public.