Flybe blames terminal tax for decision to cancel Norwich Airport routes
19.07.07
Budget airline Flybe has axed a number of routes from Norwich Airport, blaming the airports controversial terminal tax for the decision. But the airport's managing director, Richard Jenner, said that the real reason for withdrawing the flights had nothing to do with the airport tax, and more to do with competition from budget airlines operating at Stansted Airport.
Since the low-cost airline launched flights from Norwich in January 2005, the number of scheduled flights to a range of UK and European destinations has more than doubled. Passenger numbers have boomed, with flights launched to a number of destinations including Amsterdam, Paris, Belfast, Edinburgh, Malaga and Alicante.
But the introduction of a controversial £3-a-flight terminal tax, to be used to fund an £18m redevelopment of the airport, in April has led to the withdrawal of some flights this winter including Alicante / Malaga, according to a spokesman for Flybe. He said: 'Regrettably, Flybe has taken the difficult decision to withdraw the Norwich to Alicante / Malaga service. Every year, Flybe carefully examines the economic viability of all its 150-plus routes. We look not only at passenger numbers but also at external cost pressures.'
The spokesman said the tax introduced in April has had a 'profound effect on ticket sales' and meant routes which were previously marginal become loss-makers, while loss-making routes have become unviable. He added: 'The levy placed on customers by Norwich airport has made the Alicante / Malaga route economically beyond the pale and it is with regret that we have taken the decision to close the route.'
But the boss at Norwich Airport hit back at the claims. Mr. Jenner said: 'We met Flybe in the middle of June and they said to us they couldn't really compete with the competition out of Stansted as far as sunshine flights to Spain were concerned.'
'They've already pulled some flights from Birmingham for similar reasons. Because of the size of the aircraft they use (Flybe) - 118 seater - they can't compete with the prices of Ryanair and others using a 737 which carries a lot more passengers.'
Mr.Jenner also said Flybe did not offer the same frequency of flights as others did from Stansted, where there are several flights a day to destinations. He added: 'They haven't been able to get bums on seats which is why they've pulled out. They've never mentioned to us it's because of the £3 tax - they are being rather economical with the truth. The real reason is that they're changing their business model.'
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