BAA seeks marketing aid as passenger numbers fall

Published on Wednesday 10 June 2009 21:37

THE operator of Scotland's three main airports has called for more government support after passenger numbers slumped again last month, with Aberdeen recording one of its worst falls.

BAA urged ministers to embark on a new marketing push for Scottish air routes to be co- ordinated by VisitScotland.

The company is also stepped up pressure for the restoration of the route development fund, to provide cash for airlines to establish flights to new destinations.

BAA's move came after passengers at Aberdeen Airport plummeted by 14 per cent to 255,500 in May compared to a year ago, while Glasgow's fell by nearly 12 per cent to 649,600. Annual traffic at the two airports is now declining by 7.4 and 9.7 per cent respectively.

Edinburgh was the only bright spot for BAA, with significant expansion by Ryanair and an influx of rugby fans for the Heineken Cup responsible for an overall 1.4 per cent increase in monthly passengers to 821,700.

Ryanair's routes from the airport have quadrupled to 28 since last year and their passengers account for around a fifth of the airport's total.

The rugby final at Murrayfield between Leicester and Leinster saw 35,000 people using the airport the day before the game on 23 May, making it one of the terminal's busiest ever days.

May's increase was Edinburgh Airport's second consecutive rise following ten months of decline, but its annual total is still shrinking by 2.5 per cent.

All four of BAA's English airports saw passenger numbers fall last month, with Stansted suffering the most dramatic drop, of 18.5 per cent to 1.6 million.

Aviation analyst John Strickland said:

"What is notable is that Edinburgh is benefiting from increasing activity by low cost carriers, including Ryanair, who recently established a base there.

"Amongst all airlines they are the one who are bucking the trend and continuing to grow."

BAA said a European ruling forcing the scrapping of the route development fund had been called into question by the European courts last December.

A spokesman said: "The previous route development fund enjoyed cross party support among MSPs, and we believe there is a strong case for supporting airlines during the toughest trading conditions in the history of commercial aviation.

"There should also be additional marketing support."

The Scottish Government said European restrictions on airline subsidies remained in place.

A spokesman said: "We are continuing to work with airlines to encourage new routes to and from Scotland, and capitalising on every opportunity to engage with airlines across the world.

"VisitScotland is also working closely with the industry and has invested 2.35 million on jointly funded partnership campaigns with a number of airlines."

&#149 British Airways boss Willie Walsh could be awarded a potential 2.4 million in cash and shares despite expectations for more hefty losses this financial year.

BA, which has frozen pay and is cutting jobs across its workforce, is to offer top bosses bonuses this year to "provide some degree of incentive", according to its annual report.