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Credit crunch fuels slump in flights



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Published Date: 12 June 2008
By ALASTAIR DALTON
TRANSPORT CORRESPONDENT
THE economic squeeze has hit flights from Scotland's three main airports, figures from operator BAA have revealed.
Cuts in leisure flights at Glasgow Airport contributed to a sharp slump in passenger numbers there last month, while growth at Edinburgh slowed.

Traffic was down across the three airports by nearly 4 per cent, with UK passengers down by 6.4 per
cent.

BAA said airlines cutting routes, fare increases due to tax and fuel hikes and increased security checks were factors for the decline. However, it expected numbers to take off again this summer with the launch of more than 35 new routes.

Passenger numbers at Glasgow Airport fell 9.1 per cent to 735,500 on last May, with their annual rate of decline accelerating to 3.4 per cent, at 8.6 million.

At Aberdeen, passenger numbers also fell last month, by 1.3 per cent to 297,500, with the annual rate increasing 3.2 per cent to 3.4 million. In Edinburgh, the total grew by 0.7 per cent last month to 810,000, with airport traffic rising by 4.5 per cent in the last year to 9.1 million passengers.

BAA said the credit crunch hit Glasgow harder due to its reliance on leisure travel. Donald Morrison, its spokesman, said the decline in the UK charter industry also had a disproportionate impact in Glasgow.

He added: "These are testing times for airlines around the world, with soaring fuel prices resulting in higher ticket prices and dampening demand for air travel."

Mr Morrison said the scale of Glasgow's decrease last month was due to last year's figures being inflated by the UEFA cup final being held in the city.

Alison McInnes, the Scottish Lib Dems' transport spokeswoman, said: "Given fuel prices, it is unsurprising demand for domestic flights is dropping. I suspect more passengers are turning to the train.This is why we are pressing for a high-speed rail link between Scotland and London."

• Spain is the best-value destination for UK holidaymakers driving in the eurozone for diesel and unleaded petrol and hire cars, according to a report by Post Office Travel Services.



The full article contains 367 words and appears in The Scotsman newspaper.
Page 1 of 1

  • Last Updated: 11 June 2008 9:44 PM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: Scotland's airports
 
1

truthsleuth,

12/06/2008 01:11:54
We have sewef the wind and are noweaping the whirlwind.

The stupid expansion of local airports and cheap flights is coming home to roost with economic and environmental factors playing their part.

shortage of oil causing huge increases in cost are likely to continue bringing crises after crises in the transport field unless these policies are reversed and our dependence upon oil based transport is reduced.

Increased fuel costs are likely to reduce the call for road transport and large road build programs should be abandoned and the funds transferred to rail and public transport.

These funds along with the increased revenue from fuel tax etc to invest in
1. A progressive program building high speed rail links connecting all major population centres in the UK and to respective International airports.
2. Improvements to and a rolling program of electrification of all suitable rail routes.

Such a program will in the short term eat up rapidly growing unemployent by the creation investment in jobs with a long term future.

The tar and petrol brigade will not agree, but then they cannot accept that this may be the best way to 'protect' the future of car use for journeys not sutable for public transport/rail.
2

Fifi la Bonbon,

12/06/2008 02:36:22
"BAA said airlines cutting routes, fare increases due to tax and fuel hikes and increased security checks were factors for the decline."

None of this is down to the "credit crunch." Travelling through airports is unpleasant and air travel is increasingly costly. Once airlines and airports and, in the US especially, border officials learn to treat passengers as respected and valued customers and not victims to be abused and stolen from at every opportunity, people will go back. But right now they can whistle.
3

Guga II,

Rockall 12/06/2008 06:15:39
The reason for the slump, and the gathering recession is the cost of fuel.

The cost of a litre of diesel, without any taxes = 48.8p a litre.

The cost of a litre of diesel (in this part of the world) with Maggie Broon's greed = £1.41p a litre.

#4 Fifi. It's not so much that passengers on airlines are treated as victims, it's more a case of they are treated like cattle and criminals.
4

Joe,

Livingston 12/06/2008 07:46:02
"BAA said the credit crunch hit Glasgow harder due to its reliance on leisure travel".
Too many eggs in the wrong basket? Charter flights have been in decline for the last few years UK-wide. Charter-flight-starved Edinburgh being one of the few bucking the trend. There is still a monopoly of certain flights at Glasgow, flights that should also be available from the east coast. Edinburgh is punching above it's weight and future growth should not be restricted by BAA 'calming'.
5

Yok Finney,

Ross-shire 12/06/2008 07:49:57
#3

All Scottish Railroads are suitable for electrification.

Consider the proof of concept BMW electric Mini. 0-60 in 4.5 seconds, top speed 150mph, range 250 miles in all electric mode, 80mpg in hybred oppo., full regenerative braking, 4WD and traction control. All this and a super sexy electonic dash wi'it.

Take the horrible diesel commuter multis. Strip everything out below the floors and the seats too. Think what you could achieve on this platform.

My reasoning is that dynamic structures, like women, should be easy on the eye and the ear. So it'd need a new front and tail end too.

It would transform my commute to Wick in the tidal-electric bizz. Who wouldn't love it?
6

SouthernSkye,

12/06/2008 07:54:43
Credit Crunch my erse. It's all down to GB slapping vast APD (ie tax) that makes flying into UK more expensive than many other EU places. So, people check the cost of a flight to Edinburgh.
I am in Cologne.
If I wanted I could take a flight this weekend return flight to Edinburgh.
Taxes at Cologne €25
Taxes at Edinburgh €54

Or I could go to, as an example, Milan.
Taxes at Cologne €25
Taxes at Milan €39

7

Paddi,

12/06/2008 08:35:44
Simple economics really.

If you continue to over burden the taxpayers with more and more taxes then all it takes is a few events outwith GB's control and we all stop discretionary spending. Oil price surge, drying up of cheap abundant credit and all of a sudden we have gloom. By and large leisure travel is not a necessity; it gets cut in times of squeeze. the no frills airlines are as bad as the govt,£5 each way Edin - Dublin = £90+ once you add in the "surcharges" of paying for a bag, seat and most ludicrously paying for paying.
8

Rod,

Kirkliston - European Village jewel (2016) 12/06/2008 08:51:51
Overall, there was passenger growth of just under 200k at BAA's 3 Scottish airports in the 12-month period to May. Aberdeen Airport saw a passenger increase of 148k whilst Edinburgh International Airport recorded an even healthier 390k, the bulk of it being driven by the international sector.
Glasgow Airport recorded a 12-month loss of over 300k. If there is a 'slump' then it is clear where that slump is taking place.
www.baa.com hasall the figures.

9

sangriaboy,

edinburgh 12/06/2008 08:52:01
just paid 44 pounds for edi/amsterdam flight and the total taxes were 98.90!
along with the massive tax on fuel in the forecourts,we really need to do something about this.
10

Yok Finney,

Ross-shire 12/06/2008 08:53:29
All roads lead to Rome, Berlin and Paris depending on your inclination. Whereas in Scotland they lead to Dundee where we should have high speed electric trains radiating in all directions, yea even unto Forfar and Sant Antee

Of course passenger receipts could never pay for all this. It would have to be done with scottish money. Which hasn't come into existence yet. You'd think it would be easier to make money than build locos and carriages - and you'd be right on that. A few hours at a computer could do it. We would design immunity to credit crunchers and viruses into this new currency and even print some notes and mint coins for tradionalists.

A design-proposal from a world class engineer comes astonishingly cheap. Compared to architects, lawyers, surgeons etc. We'd bypass London/Whitehall who would need £millions for a consultative document NB use at all for actually building a train, and have the engineering shop erected and fitted out. One step at a time is what it takes.
11

Rulesbutnotrulers,

Federation, not separation 12/06/2008 09:38:44
Great news. The fewer flights the better.
12

geekpie,

forfar 12/06/2008 10:13:56
Scottish airports are big generators of car trips, even though they are well served by public transport. Parking rates need to be higher, and you should be paying a few quid even just to drop off / pick up.
13

Yok Finney,

12/06/2008 10:28:11
Scottish airports are also good sources of income for those who can fix car electronics frazzled by the high power radar banks they need.

But waste, inefficiency and total destruction are of no interest to banks. They want debts repaid and the INTEREST on them. The taxpayer does this!

Where better to collect than at a gated airport.

14

Rod,

Kirkliston - European Village Jewel (2016) 12/06/2008 10:50:24
#15 York : car electronics frazzled by the high power radar banks they need.

Are you sure about this, York? I have lived in close proximity to the 'high powered radar banks' you describe for over 50 years and have just purchased my 12th new car. None have suffered any problems with their electronics nor am I aware of any complaints from my fellow villagers who travel to the airport by car on a daily basis for work purposes. I park my own car two to three times daily within 100 yards of two radar installations at Edinburgh Airport and have been doing so for several years without any problems.
15

Steven P,

edinburgh 12/06/2008 11:16:13
Yet everybody wants to build more runways and capacity?
For whom?
Oil at usd 100+ has destroyed the business case for airport expansion.
16

DAMcK,

Lanark 12/06/2008 11:16:47
Ford Transit
"My flights are booked with a lo-co that doesn't have surcharges!"

Erm, I've been flying with Ryanair to Frankfurt for 4 months. The cost has gone up from on average 80 Euro return to 130 Euro since January. They don't need surcharges with dynamic pricing!
17

Incandescent,

12/06/2008 11:34:27
#14 Geekpie

What new madness from you is this? Children don't walk to school outside airports! Away and weave some kelp you nanny state-loving, green-blinkered naieve.
18

Capital Boy,

12/06/2008 11:35:00
erm if the huge drop in passenger numbers at glasgow is down to the credit crunch, how come edinburgh and aberdeen's numbers are till rising or do certain parts of the country feel the crunch before everyone else or is the credit crunch being used as an excuse for very poor passenger numbers by certain folks way out west ?
19

lulach mac gille coemgain,

12/06/2008 11:57:36
Heh! Heh! baa want to expand Edinburgh Airport - take alistair dalton for a meal - give him some figures with his wine - and we get this report.

Credit Crunch doesn’t affect baa - the Spanish Government Finance ‘propped’ building company that has taken control of the major UK air travel infrastructure and wants to turn them into captive market shopping centres.
20

lulach mac gille coemgain,

12/06/2008 12:04:20
#10 well said Rod - Scotland need to become independent so we can profit from these airport taxes and not have them spirited away by the Westminster contingent.

These figures are clear proof that Scotland has is the ‘BOOM’ region of the UK
21

Yok Finney,

Ross-shire 12/06/2008 13:31:53
It's banks that profit from taxes not nations. For they have a monopoly of making (at minimal cost) new money required for any useful projects and thus we're debt financed lock stock and barrel. Which the tax payer pays the interest on. Now you're in the jet set, the Government has reasoned that you must have some money and will get some off you by every possible method. For those actually working in the UK are taxed to the hilt and can't take any more of it and the very rich don't pay any tax at all. You could think on this while you're sitting in your airplane seat if the airline are giving you sufficient oxygen. This costs too.
22

Joe,

Livingston 12/06/2008 13:44:26
#22..Will this independent Scotland be ruled by an SNP administration that has just effectively cancelled
the direct Edinburgh Airport Rail link?
23

geekpie,

12/06/2008 15:40:17
#19 Incandescent:

"What new madness from you is this? Children don't walk to school outside airports! Away and weave some kelp you nanny state-loving, green-blinkered naieve."

eeeh no. Journies don't start and finish at or around the airport m'boy. Those people driving to and back from the airport live in houses, maybe even on your street!
24

D.P.,

Angola. 12/06/2008 23:07:01
No 3. Believe me.. There is NO shortage of oil. In fact there is more than enough fo r the next 40 years. It is the price of oil that is the problem.
25

Dumb Eye @,

12/06/2008 23:51:45
#5 - Aircraft don't run on diesel, they run on ATK (paraffin to the uninitiated), assuming they are jet or turbine powered.

#14 - how do you work out that Scottish airports are "well served by public transport"? Edinburgh is my nearest airport, <45 minutes by car, Glasgow ~1 hour by car (depending on time of day). Neither can be reached in under 4 hours by public transport, and involve several changes, not much fun when carrying luggage, & impossible if a morning flight is required.
26

Annoyingboi,

Edinburgh 13/06/2008 13:36:38
At the end of the day ALL AIRPORTS are going to start spiraling into decline soon. Holiday booking across the country are falling drastically and people pull in the purse strings!

 

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