Loading

easyJet announces network redeployments

Direct News Source

East Midlands to close and Luton to be reduced by 20%

easyJet today announced proposals to reduce its flying programme at Luton by 20% and to close its East Midlands base. The airline will move this capacity to more profitable airports and expects that most of the aircraft will be redeployed to continental European bases. easyJet is committed to developing Europe's premier short haul network and its overall growth plans remain unchanged at around 7.5% per year over the medium term.

The proposals to reduce flying at Luton are a function of the airport's failure to recognise the commercial realities of the recession and that easyJet has opportunities to move capacity to more attractive locations elsewhere in its network as weaker competitors retrench in today's tough climate.

Airport costs at Luton have risen by 25% over the past three years which makes the base no longer competitive. easyJet has been in protracted negotiation with Abertis, the Spanish operator of Luton and its owner Luton Borough Council, which is understood to receive over half of the airport charges. These negotiations have broken down leaving easyJet no alternative but to reallocate parts of its flying programme.

easyJet's base at East Midlands has remained stagnant with 3 aircraft for many years and easyJet will focus its assets on higher priority markets. easyJet has therefore opened a formal 90 day consultation with its crew at Luton and East Midlands.

The situation at both of these airports has been exacerbated because all flying from the UK, especially from regional bases like East Midlands, has been undermined by the rise in Airport Passenger Duty. APD in its current form is particularly damaging to regional airports which do not benefit from transfer passengers for whom APD is not applicable. easyJet regrets the Government's decision to backtrack on the reform of APD which would have made it an emissions-based tax rather than simply a blunt holiday tax.

Andy Harrison, easyJet's Chief Executive, said:

"easyJet is a pan-European airline, winning market share right across Europe, as demonstrated by another strong traffic performance in August. We are one of only a few airlines expecting to make a profit this year. A critical part of our success has been optimising the allocation of our aircraft across our 19 European bases. This means responding to airports with uncompetitive costs, as well as moving swiftly to seize opportunities as competitors retreat."

"I am deeply disappointed that Abertis and Luton Borough Council have not taken a more far-sighted approach which would have protected jobs at Luton. At a time when jobs are under threat in the town the airport should be an engine for growing employment, not a source of further unemployment. This can only happen, however, if the owner and the operator make the right commercial decisions and deliver a competitive cost base."

"In regard to East Midlands we cannot see a growing long term future and we have decided to move our assets to markets with better long term potential."

"The rise in APD hits regional airports hardest and increases the pressure to move aircraft to mainland Europe. The Government seems to think that APD is a free lunch. It isn't; it costs jobs in the UK."

In addition to the proposal to move aircraft from Luton and East Midlands, easyJet will consult on a reduction of the number of flight crew at Belfast, Bristol, Newcastle and Stansted. The number of aircraft based at these airports is expected to remain stable. The move simply aims to ensure the right crewing levels for future flying.

There are sufficient opportunities within easyJet's growing network for all employees who are affected by today's announcement, and it is easyJet's intention to redeploy as many as possible.