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Ryanair to cut number of services at Edinburgh Airport Doubt over Ryanair job loss claim as airline cuts Edinburgh routes
(about 1 hour later)
Low-cost airline Ryanair has announced plans to cut the number of services it operates in and out of Edinburgh Airport. Ryanair's claims that its plans to reduce services from Edinburgh Airport could mean up to 300 job losses have been dismissed by industry insiders.
The carrier said the move could lead to the loss of up to 300 jobs. The budget airline said it would reduce its number of aircraft based there from seven to six and would cut five routes.
Ryanair plans to reduce the number of aircraft based at Edinburgh from seven to six, and will cut five routes. This followed the breakdown in talks with operator BAA over a reduction in charges for using the airport.
The move followed the breakdown in negotiations with operator BAA over a reduction in the charges Ryanair pays for using the airport. It will stop flying to Berlin in Germany; Malmo in Sweden; Murcia and Ibiza in Spain; and Tallinn in Estonia.
Ryanair said it would close the routes between Edinburgh and Berlin, Malmo, Murcia, Ibiza and Tallinn. However, the Tallinn flights are already suspended for the winter and the Malmo, Murcia and Ibiza routes were only announced on 31 January and have not yet begun flying.
However, flights to Berlin had already been stopped, and the routes serving Malmo, Murcia and Ibiza were only launched three weeks ago and have not yet started operating. At a news conference, Ryanair's chief executive Michael O'Leary claimed hundreds of jobs would go as a result of his company cutting back.
Job claim Ryanair does not directly employ any staff at Edinburgh Airport, and a spokesman for its handling agent Servisair said he could make no comment.
The potential number of job losses has been disputed by industry insiders. However, the BBC understands that there will be "little or no" impact on jobs at the company.
Ryanair does not employ any staff directly at Edinburgh Airport. One industry insider said he was "gobsmacked" by Mr O'Leary's claims.
One source said they "would be amazed" if anything like that number of staff were made redundant. BAA said it would not be making any job cuts, claiming the effect of one fewer aircraft would be minimal at an airport where its 485 employees deal with 9.3 million passengers every year.
Ryanair chief executive Michael O'Leary said: "Ryanair regrets BAA Edinburgh Airport's rejection of our proposals for a competitive cost base which would allow Ryanair to further grow our traffic and routes for summer 2012. Mr O'Leary blamed BAA's "high costs" for the route cuts, accusing the company of rejecting its proposals for a "competitive cost base."
"Sadly BAA Edinburgh seems to prefer higher costs, even if it means fewer passengers and jobs at Edinburgh." "Sadly BAA Edinburgh seems to prefer higher costs, even if it means fewer passengers and jobs at Edinburgh," he said.
He said that Ryanair remained committed to Edinburgh Airport, where it operates 35 routes and handles 1.5m passengers. Edinburgh Airport has become the Ryanair's largest hub in Scotland.
But he added: "BAA Edinburgh cannot continue to ignore the competitive marketplace, where airports all over the UK and Europe have been reducing costs and lowering charges in return for traffic growth. 'Hard to negotiate'
"We hope even at this late stage that BAA Edinburgh will realise that the way to grow traffic and jobs is by working with Ryanair to lower passengers fares, not raise them." Its contract with Edinburgh is up for renewal in October and the company warned of "significant further cuts" if the new five year agreement "is not extended on more competitive terms".
Airport sale BAA is selling Edinburgh Airport following a decision by the Competition Commission with final bids due to be lodged by early April.
Edinburgh Airport has become the company's largest hub in Scotland. Jim O'Sullivan, the managing director of Edinburgh Airport, said it was disappointed that Ryanair has reduced its services.
Ryanair accounts for about a fifth of the airport's passengers. "We have tried extremely hard to negotiate with Ryanair, but sadly on many issues have not been able to find common ground," he said.
Ryanair's contract with Edinburgh is up for renewal in October and the company warned of "significant further cuts" if the new five year agreement "is not extended on more competitive terms". "For example, we cannot accept their wish to not pay the agreed air traffic control costs that all other airlines pay."
Edinburgh Airport is being sold by BAA after it was told by competition regulators to let go of one of its Scottish hubs.
BAA, of which Spanish company Ferrovial is a major shareholder, will keep Aberdeen Airport and Glasgow Airport.
Final bids for Edinburgh Airport are due to be lodged by early April.