EasyJet on the up as it focuses on Scotland

Carolyn McCall, boss of low-fares airline EasyJet, turned up the heat on rivals BA and Ryanair yesterday as she vowed to ramp up capacity on Scottish routes.

The chief executive was in Scotland in a bid to woo the business community with a new flexible fare structure that allows late changes to be made to flight schedules.

McCall said the carrier, which recently posted a surge in profits, aimed to boost seats on all routes it flies from Scotland by 10 per cent next year, despite having to put a freeze on capacity across its network this winter.

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But McCall said the group would introduce its larger Airbus A320 into Scotland in the spring. The aircraft offers 30 more seats than the model it currently operates on the routes.

The increase in capacity flying from Scottish airports is expected to be larger than those planned for other parts of the UK, where growth rates are likely to be in the “single digits”.

McCall, who became chief executive of EasyJet in April 2010 after she was lured from the top job at Guardian Media Group, last week unveiled a 61 per cent increase in profits to £248 million.

The airline also paid out its first ever dividend, worth nearly £200m to shareholders, after Sir Stelios Haji Ioannou, the firm’s largest shareholder, put direct pressure on the board to up returns.

In a move away from the low-cost airline model, EasyJet has also introduced allocated seating and has begun selling tickets through corporate bookers in an effort to attract higher-margin business passengers.

McCall stressed that Scotland was an “important market”, not least because 43 per cent of passengers travelling from Glasgow and Edinburgh to London were flying on business.

The firm currently carries 4.5 million Scottish passengers a year, outpacing the 3.6 million or so who fly with BA and 3.3 million with Ryanair. Its capacity expansion will see it offer 6.3 million seats next year. Aircraft typically fly about 80 to 90 per cent full.

Although McCall said it was “too early to tell” what the impact of the recently announced merger between BA and BMI would be – particularly on low-cost flights from Edinburgh with BMI Baby – she argued that the deal will “take some capacity out of the market… which is good for us and good for everybody else”.

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She added: “It [EasyJet’s expansion] doesn’t show anything other than confidence in the Scottish market and that we will remain Scotland’s leading airline.

“We believe Scotland is a really important market for us and there is further room to grow.”

Meanwhile, budget airline Norwegian Air Shuttle yesterday announced it would fly from Edinburgh to Bergen as part of a launch of 34 routes from the Nordic countries to destinations in Europe starting in March 2012.

Bjørn Kjos, chief executive said: “We are a strong player in the Nordic market and a fast-growing airline. New and more environmentally friendly aircraft with free in-flight WiFi have proven a success as more and more passengers choose to travel with us. With an expanding network, of nearly 300 routes, we are able to offer even more flexibility to our customers in terms of connecting flights.”