Losses cause business review at Prestwick Airport
21.01.09
Prestwick Airport has been running at a loss for the past two months and is carrying out a business review that could lead to job losses, according to press reports. The airport has been hit by the economic downturn and management have started a 90-day process to look at reducing costs and boosting revenue. Workers at Prestwick have been informed about the review, which has just begun.
Airport chief executive Mark Rodwell told the BBC: ‘We are running at a loss at the moment.’ However, he said long-term prospects remained ‘optimistic’ and job cuts were not ‘a foregone conclusion’.
Mr Rodwell told BBC Radio's Good Morning Scotland programme that the airport had been running at a loss for the last couple of months. He said: ‘The intention is certainly to stay open and the 90 days is not linked to the decision to stay open or not. We have entered into a review process to look for ways to deliver efficiencies, cost savings and revenue improvements.'
‘Our business development team is working hard to offset the recent loss of freight and charter traffic by exploring a number of opportunities with potential new airlines. While these are difficult times we are optimistic about the long-term future of the airport and the aviation industry as a whole, which has always recovered well in the past.’
Mr Rodwell said passenger services had been ‘strong’ during 2008 but he anticipated a ‘difficult year with many challenges’ ahead. He said it was too early to say what the impact would be on staff but the aim would be ‘to avoid job losses where possible’.
However, according to press reports around 240 jobs could be axed at the airport as part of the 'major cost-cutting plan'. The Evening News says that a 90-day consultation period has started with the 500 staff at the airport. The most recent CAA figures show passengers on non-scheduled flights were down nearly one-fifth compared to the previous year.
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