SFGate: Ireland's Ryanair cuts back winter flights

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Thursday, July 17, 2008 (AP)
Ireland's Ryanair cuts back winter flights
By SHAWN POGATCHNIK, Associated Press Writer


   (07-17) 09:24 PDT DUBLIN, Ireland (AP) --
   No-frills airline Ryanair said Thursday it will withdraw nearly a third =
of
its aircraft from its major London base and suspend operations at seven
other European airports because of sky-high fuel costs and its failure to
negotiate lower airport fees.
   This will be the second straight year that Ryanair Holdings PLC reduces
its activities at Stansted Airport for its winter season running from
October to March amid soaring fuel costs and dropping consumer demand.
   Ryanair said it would operate 28 aircraft at Stansted starting in Octobe=
r,
down from 40. Chief Executive Michael O'Leary told a London news
conference he expects the cutbacks to cost 900 jobs at the airport
northeast of London, including 150 Ryanair employees.
   Separately, Ryanair announced it will cancel its services from Nov. 4 to
Dec. 19 at seven destinations: Basel in Switzerland; the Hungarian
capital, Budapest; the Polish cities of Krakow and Rzeszow; Palma and
Valencia in Spain; and Salzburg in Austria. And it warned of further
disruptions if those airports don't discount their fees during low-demand
periods.
   Deputy Chief Executive Michael Cawley said those bases were being
temporarily shut because "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."
   A spokesman for Budapest Airport, Domokos Szollar, said Ryanair did not
pursue serious negotiations and merely sent a "form letter" demanding
lower wintertime fees before cutting services during a particularly slow
few weeks.
   "It's curious that Ryanair is restarting its flights just in time for the
Christmas season," Szollar said. "This is not about Budapest Airport being
expensive, but about Ryanair wanting to save money."
   Dublin-based Ryanair said it would operate 14 percent fewer flights from
Stansted than during the previous winter season.
   Ryanair said it also was transferring some Stansted-based aircraft to new
winter routes, chiefly to Spain's holiday islands.
   O'Leary blamed BAA PLC, the company that operates all the major London
airports, for forcing Ryanair's hand, and issued an identical complaint
against the Dublin Airport Authority.
   In both cases, airport managers rejected a Ryanair proposal for lower fe=
es
per passenger in exchange for as uninterrupted winter business. "Monopoly
airports ... have delivered high prices and awful facilities. It is time
we allowed competition to deliver where monopolies have failed," O'Leary
said.
   BAA offered no immediate reaction to O'Leary's criticisms, but the Dublin
Airport Authority dismissed them, saying O'Leary's demand for
"anticompetitive support mechanisms" was "justly declined."
   Ryanair shares were up 1.7 percent at euro2.98 ($4.73) in afternoon
trading on the Irish Stock Exchange.
   ___
   Associated Press writer Pablo Gorondi in Budapest, Hungary, contributed =
to
this report. --------------------------------------------------------------=
--------
Copyright 2008 AP

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