Ryanair’s ultimatum to Stansted

Posted on: June 22nd, 2007 by Jennifer Jones

Low-cost carrier Ryanair is threatening to partially withdraw its flights from Stansted Airport if the airport operator does not reduce its landing fees for the location.

Stansted is Ryanair’s hub in the United Kingdom but unless the cost of landing there goes down, airline spokespeople say they will start moving their aircrafts to other locations.

The number of passengers flying in general has dropped lately and Ryanair is pointing the finger at the government and airport operators like BAA, accusing both of increasing taxes and airport costs to unreasonable levels.

One airport carrier from Stansted agreed, saying that air passenger duty and the cost  of landing has at least doubled recently. Since airlines have had to increase ticket prices in order to help absorb the costs, demand has dropped.

Michael O’Leary, the Chief Executive Officer at Ryanair said, “We will take some flights and aircraft out of Stansted this winter if there is no movement on these high costs. Passengers are suffering a double-whammy.” He suggested as many as ten percent of the fleet would vacate Stansted.

Analysts suspect that if Ryanair pulls out, other airlines will be quick to take is place. Given this fact and the importance of Stansted as a base of Ryanair’s operations, many feel that the threat is empty and despite the cost, that Ryainair will remain in Stansted.

www.ryanair.com