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
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
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
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
MSCPGGRUGUPPGGP -0- Nov/22/2012 11:11 GMT
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