21/07/2008

Ryanair 'Closes' European Bases

Budget airline Ryanair has announced plans to curtail services at seven of its airline bases in Europe as part of a cost cutting plan.

The airline blamed a variety of factors for its decision to temporarily halt operations from Basel, Budapest, Karakow, Palma, Rzescow, Salzburg and Valencia.

These airports are believed to be some of the more expensive to run among Ryanair's bases, and the rise in oil prices to €140 a barrel is thought to have pressurised the decision.

Ryanair's Deputy Chief Executive Michael Cawley said: "A combination of high airport charges and the massive increases which we face in fuel prices, makes it more profitable for Ryanair to ground aircraft rather than fly them at these airports during this period.

"Low airport costs and local support are required to sustain these operations, particularly through the low yielding months in the winter.

"In the absence of this support, Ryanair has no alternative but to cancel these routes and develop its business elsewhere."

The airline is also believed to have plans to substantially cut its Stansted service for the winter.

(DW)

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