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Flybe boss hits out at 'punitive' charges as airline quits Gatwick Flybe boss hits out at 'punitive' charges as airline quits Gatwick
(4 months later)
The boss of Flybe has hit out at "punitive" charges and taxes that have pushed the troubled regional airline to end flights in and out of London from next March.The boss of Flybe has hit out at "punitive" charges and taxes that have pushed the troubled regional airline to end flights in and out of London from next March.
Flybe announced it would sell its 25 slot pairs at Gatwick to easyJet for £20m as it attempts to stem its losses. It has flown from the London airport for 22 years.Flybe announced it would sell its 25 slot pairs at Gatwick to easyJet for £20m as it attempts to stem its losses. It has flown from the London airport for 22 years.
Jim French, chief executive of Flybe, said: "No business can swallow cost increases of more than 100% over five years and Flybe simply cannot bear such punitive rises. We have therefore taken the very difficult decision to withdraw our services from London Gatwick from 29 March 2014, because of the airport's policy of year-on-year above inflation rises in landing fees for operators of smaller regional aircraft.Jim French, chief executive of Flybe, said: "No business can swallow cost increases of more than 100% over five years and Flybe simply cannot bear such punitive rises. We have therefore taken the very difficult decision to withdraw our services from London Gatwick from 29 March 2014, because of the airport's policy of year-on-year above inflation rises in landing fees for operators of smaller regional aircraft.
"When you add to these cost increases the government's policy of charging air passenger duty on both legs of a domestic flight, I'm afraid it's inevitable that high frequency services from the UK's regions will be squeezed out of Gatwick, as they have been from Heathrow.""When you add to these cost increases the government's policy of charging air passenger duty on both legs of a domestic flight, I'm afraid it's inevitable that high frequency services from the UK's regions will be squeezed out of Gatwick, as they have been from Heathrow."
The seven axed Flybe routes – Newcastle, Jersey, the Isle of Man, Inverness, Guernsey, Belfast and Newquay – flew 550,000 passengers to and from Gatwick in the last financial year. French, mentioning the hub airports of Paris and Amsterdam that Flybe still serves, said: "Gatwick airport may not want those connecting passengers, but others do."The seven axed Flybe routes – Newcastle, Jersey, the Isle of Man, Inverness, Guernsey, Belfast and Newquay – flew 550,000 passengers to and from Gatwick in the last financial year. French, mentioning the hub airports of Paris and Amsterdam that Flybe still serves, said: "Gatwick airport may not want those connecting passengers, but others do."
The airline said more jobs would go as part of its turnaround plan to cut costs, with 80 further redundancies this year on top of almost 300 staff who have left so far.The airline said more jobs would go as part of its turnaround plan to cut costs, with 80 further redundancies this year on top of almost 300 staff who have left so far.
City analysts said the deal was encouraging for the airline's prospects. Gerald Khoo of Espirito Santo said he saw the slot deal "enhancing significantly the chances of the group executing a successful turnaround without recourse to additional external funding".City analysts said the deal was encouraging for the airline's prospects. Gerald Khoo of Espirito Santo said he saw the slot deal "enhancing significantly the chances of the group executing a successful turnaround without recourse to additional external funding".
Andrew Lobbenberg of HSBC warned that details "remained to be communicated" and that Flybe would need to show it could turn its plans into reality. He suggested that Flybe might turn to London City airport after its "sensible" exit from Gatwick.Andrew Lobbenberg of HSBC warned that details "remained to be communicated" and that Flybe would need to show it could turn its plans into reality. He suggested that Flybe might turn to London City airport after its "sensible" exit from Gatwick.
The sale will meanwhile further consolidate easyJet's position as the biggest airline at Gatwick, giving it almost half of the slots.The sale will meanwhile further consolidate easyJet's position as the biggest airline at Gatwick, giving it almost half of the slots.
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