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Ryanair Holdings PLC RYA RYANAIR ANNOUNCES 40% CUTS AT BUDAPEST



  Ryanair Holdings PLC (RYA) - RYANAIR ANNOUNCES 40% CUTS AT BUDAPEST

RNS Number : 7870R
Ryanair Holdings PLC
22 November 2012
 



                    RYANAIR ANNOUNCES 40% CUTS AT BUDAPEST

                 AS HOCHTIEF FAILS TO OFFER COMPETITIVE COSTS

                                       

      10 ROUTES, 800,000 PASSENGERS & 800 JOBS LOST AT BUDAPEST AIRPORT

 

Ryanair, Europe's only ultra-low  cost airline, today  (22 Nov) announced  40% 
cuts at its Budapest base with the closure  of 10 routes and loss of over  280 
weekly flights  from 10  Jan  2013 after  the Hochtief-run  airport  increased 
charges, refused  to  provide  efficient  facilities and  failed  to  offer  a 
competitive cost  base  for  future  growth  offered  by  Ryanair.   Ryanair's 
Budapest traffic will fall by 800,000 pax  p.a. (from 2m to 1.2m pax)  leading 
to the loss of up to 800 "on-site" jobs*.

 

Hochtief's failure to  agree a  long term  growth deal  with Europe's  largest 
airline is  further  proof  that  Budapest Airport  has  no  interest  growing 
Hungarian tourism, traffic and jobs as it repeatedly increases charges even as
its traffic declines.  This was  confirmed by Patrick Bohl (Budapest  Airport) 
who recently admitted  that 'budget  airline' passengers pay  more than  Malev 
transfer passengers, with  Budapest enjoying "probably  the best recovery  any 
airport has seen when they lost a national carrier."

 

These Budapest cuts (effective 10 Jan 2013) will include:

 

·     5 to 3 based aircraft

·     30 routes to 20 (down 33%).

·     From over 280 weekly flights to less than 170 (down 40%).

·     2m to 1.2m pax p.a (down 40%).

·     Frequency cuts on 9 of 20 other routes

·     The loss of 800,000 pax p.a. and 800 "on-site" jobs at Budapest Airport.

 

Ryanair regrets these cuts and confirms that they can be reversed if a
competitive cost offer and efficient facilities become available at Budapest
Airport.

 

In Budapest today Michael O'Leary said:

 

"Ryanair regrets  Hochtief Budapest  Airport's decision  to increase  charges, 
impose inefficient  facilities  and reject  our  proposals for  a  competitive 
growth offer which would  have allowed Ryanair to  grow traffic and routes  at 
Budapest.

 

Ryanair will now switch 2 aircraft from  Budapest with the loss of 10  routes, 
reductions on 9  others and  the loss of  110 weekly  flights. Sadly,  800,000 
passengers p.a. and over 800 jobs will  be lost by Budapest to other  airports 
elsewhere in Europe, where Ryanair will continue to grow.

 

With 1.2m passengers and 20 routes, Ryanair  will remain one of the 2  largest 
airlines operating at  Budapest, but  Hochtief cannot continue  to ignore  the 
competitive marketplace, where  airports all  over Europe  have been  reducing 
costs and offering efficient facilities in return for traffic growth.  We hope
there is a  way to  reverse these  cuts to  ensure further  Ryanair growth  at 
Budapest."

 

                    RYANAIR'S BUDAPEST ROUTE CANCELLATIONS

 

1 Baden       6  Lubeck
2 Birmingham  7  Malaga
3 Bologna     8  Munich
4 Dusseldorf  9  Oslo
5 Krakow     10 Thessaloniki

 

* Per ACI statistics

 

Stephen McNamara                            Joe Carmody

Ryanair Ltd                                          Edelman

Tel: +353-1-8121212                         Tel. +353-1-6789333

                     This information is provided by RNS
           The company news service from the London Stock Exchange
 
END
 
 
MSCPGGRUGUPPGGP -0- Nov/22/2012 11:11 GMT
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