EasyJet reducing services, calls on UK government to make airports competitive
The head of no-frills airline EasyJet called on a local council today to take responsibility for helping to make its airport competitive.
EasyJet chief executive Andy Harrison made the comments as around 100 members of the airline’s cabin crew took to the streets of Luton to protest over planned cuts at the town’s airport.
Earlier this month the company announced plans to close its East Midlands Airport operation and reduce services at Luton airport by 20%.
The budget airline is also consulting on a reduction of the number of flight crew at Belfast, Bristol, Newcastle and Stansted airports.
In an open letter today to leader of Luton Borough Council Hazel Simmons, Mr Harrison urged the council to liaise between the airline and council-appointed infrastructure company Abertis, which operates the airport, to lower costs.
The letter said: “Luton airport should be growing not shrinking.
“The council cannot escape its responsibility to make the airport competitive. The council own the airport, the council take more than half of the airport charges paid by easyJet.
“The council appointed Abertis and it is the council’s job to promote economic development in the region.”
EasyJet said that because of a 25% increase in airport costs over the past three years, Luton has become uncompetitive.
Mr Harrison said it had already reduced its flying at Luton by 14%, and now has plans to reduce it further by 20%.
Today he said they could not rule out further cutbacks in the future.
His letter said: “The council has substantial economic power over Abertis. I suggest that you use it to secure the future of the airport.
“I suggest that you demand to see the Spanish directors of Abertis who over-ruled the agreement reached back in June between the local airport management and easyJet.
“If you don’t use your commercial influence with Abertis, Luton Airport is in danger of further rapid decline.
“Apologies for being so direct, but Luton is the home of easyJet and we care passionately about it. Now is the time for the council to make a stand and demand a better future from Abertis, its appointed franchisee.”
Cabin crew and their families brought Luton town centre to a standstill today.
Dressed in the company’s trademark bright orange, the crowd held placards including slogans such as “Keep Luton Orange”, “Lower costs save our jobs”, “Save jobs in Luton” and “Sack Abertis”.
As they marched through the town, they chanted: “What do we want? Lower costs. Why do we want them? To save our jobs.”
The group gathered outside Luton Town Hall to present a letter of complaint to council leader Hazel Simmons.
Spokesman Paul Wheeler, a member of cabin crew himself, was invited in to the Town Hall to speak with council bosses.
Speaking after the brief meeting, he said: “As cabin crew, we felt helpless at the ground level.
“We knew of the work the chief executive was doing but we are just sitting there waiting for something to happen so we got together to organise this protest.
“We’re doing this today just to raise awareness and get the public involved.
“We have approached the council today hoping that they can use their influence to help lower costs.”
Mr Wheeler said workers were worried about the knock-on effect the planned cuts of flights at Luton would have, not only on their own jobs, but on the town as retailers and local businesses become threatened by a drop in visitors to the area.
He said that if both the airport and the council lowered their charges slightly, the collective effort would help rectify the situation.
“If they just lowered their costs by a couple of pounds the problem would go away,” he said.
“I’ve presented a letter of complaint to Councillor Hazel Simmons. She invited us in for a chat and basically said there’s nothing the council can do.
“It’s basically an issue for Luton Airport. We’re very disappointed.
They own it, they should have the power to do something to help.”
Today Ms Simmons said: “We have enormous sympathy for the easyJet workers. But negotiations are between easyJet and the airport operator – London Luton Airport Operations Ltd – which is a private consortium.
“Luton Borough Council is not party to them or able to influence them.
“We urge both parties to resume their negotiations and resolve their differences.”
In a formal letter to the protesters, she said the council “deeply regrets” that the airline plans to reduce its flying programme by up to 20%.
The letter urged workers to focus their energies on the “realities of the situation”, and said that the airport has been operated, managed and developed by private consortium London Luton Airport Operations Ltd for 30 years.
It said the consortium is part of Airport Concessions & Development Ltd (ACDL), which is owned by Spanish specialist airport management companies Abertis Infraestructuras and Aena Internacional.
Ms Simmons’ letter said: “Whilst we have enormous sympathy for the situation in which you now find yourselves, the council rejects any suggestion that it is in some way responsible.
“It is time for energies to be focused on the realities of the situation.
“Luton Borough Council entirely shares the ambition that easyJet should stay and grow at its ‘spiritual home’ at London Luton Airport, and believes it is in everyone’s best interests for the two parties to get back to the negotiating table and try to resolve their differences.”
A spokeswoman for London Luton Airport said today that they had nothing to add to a statement issued earlier this month when easyJet first announced its proposed cuts.
The statement from London Luton Airport Operations Ltd said: “We regret that easyJet has chosen not to take up the improved commercial terms on offer from the airport, which are highly competitive and which reflect the external cost pressures London Luton Airport has had to face over recent years.
“We will continue to work closely with easyJet in what remains a substantial and important business partnership.
“London Luton Airport is committed to long-term growth in which we have an impressive track record, having increased our passenger numbers from seven million in 2002 to over 10 million in 2008.
“In 2009, we have added 18 new routes, attracted three new airlines to the airport and were recently voted Best UK Business Airport 2009.”
Today, Nigel Huddleston, Conservative prospective parliamentary candidate for Luton South, supported the demonstration.
He said: “Choosing where to locate planes and airport crews is an open market.
“EasyJet and all airline operators have a choice of airports and can quite easily pick up sticks and move planes and crews to other airports if high charges are jeopardising route profitability.
“The issue is of concern to all Lutonians because the council gets a share of the revenue from every passenger that goes through the airport, which in turn is used to subsidise local council tax.
“It is in the interests of neither the council nor local residents to see flights go elsewhere, passenger volumes decline, and revenues disappear.
“The council may think they are acting in the best interests of the town by refusing to budge on price, but the result of that inflexibility is flights, crews and revenues going elsewhere.
“We need to remember that a smaller percentage of something is better than 100% of nothing.
“In the interests of all Lutonians, I appeal to the council to redo the maths and rethink their position.”
Topics: airports, Britain, EasyJet, ecompetitive, Economy, England, Governance, Lutton Council, UK, United Kingdom
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