Friday, April 3, 2009

Ryanair could pull out of Prestwick

Following discussions between Ryanair and management at Prestwick airport, the airline has indicated that it's future at the airport is under review. Ryanair blame the Airport Passenger Duty (APD) tax for a decline in numbers at the Ayrshire airport which saw January's throughput fall by 9.6% YoY over 2008. Maria Macken Ryanair's UK marketing manager has said that as a result of the APD tax the airline is effectively subsidising it's own tickets and called on the government to scrap the scheme. She went on to say that Ryanair were having to lower their fares to get people flying, an action which was not sustainable long term. "If we feel we can get better value elsewhere we will do that. If we can operate for less we will do that."
Prestwick's fortunes are suffering at the hands of Edinburgh where Ryanair has increased it's presence significantly with a total of 10 new routes announced in recent weeks. Prestwick's difficulty is that it's airport charges are already attractive compared to Glasgow, Edinburgh and Aberdeen and it is operating on thin margins. With money so tight there is little room for Prestwick to manoeuvre. Ryanair operate 28 routes from Prestwick.
Posted 090403

No comments: