21 October 2008

BAA reports dramatic fall in passenger numbers

Passengers numbers through BAAÃ¢â¬â¢s UK airports fell by 5% last month, compared to September in 2007.

The seven airports operated by BAA handled 13.3 million passengers in September, and 113.4 million in total since January, a fall of 1.4% for the nine month period.

European charter traffic fell by 12.6%, partly down to the collapse of XL Airways.

North Atlantic traffic was down by 6.8% and other long-haul routes by 6%.

European scheduled traffic achieved the best result with a drop of just 2.2%.

At Heathrow, passenger total fell by 3.6% overall, despite a 9.6% increase in North Atlantic traffic.

European scheduled traffic at Heathrow was down by 8.1%.

At Gatwick, North Atlantic traffic fell by 44% mainly due to the introduction of the Ã¢â¬ËœOpen SkiesÃ¢â¬â¢ Agreement which saw many carriers switch to Heathrow.

But at Gatwick, European scheduled traffic was up by 8.8%.

StanstedÃ¢â¬â¢s passenger total fell by 4.7% overall, with European scheduled traffic down by 2.9% and domestic by 0.8%.

Southampton recorded a drop of 4% overall, with European scheduled traffic down 8.6%.

In Scotland, Edinburgh traffic was 2.9% lower and Aberdeen saw a 4.2% drop in passengers.

The largest drop was at Glasgow (Ã¢â¬'11%) where the loss of XL and Zoom services exacerbated already weak charter and North Atlantic results.

But GlasgowÃ¢â¬â¢s European scheduled traffic was 3.7% up on last year.

In total BAAÃ¢â¬â¢s airports recorded a 1.3% drop in air transport movements during September and a 2.3% reduction in air cargo tonnage.

Despite the overall loss of cargo traffic, both Heathrow (+2.5%) and Stansted (+3.8%) recorded increases.

BAA said it remained confident that the long-term growth prospects for aviation are good.

Ã¢â¬ÅâœHistorically, air traffic growth recovers from short-term shocks such as those currently being played out in the financial markets, as evidenced by the growth in traffic after the Gulf wars, 9/11 and the Asian economic problems in the late 1990s and the fact that sales of commercial civilian aircraft remain buoyant,Ã¢â¬~ it said in a statement.

But the figures were greeted with less enthusiasm from Ryanair, which claimed BAAÃ¢â¬â¢s long-term growth prospects were Ã¢â¬ÅâœawfulÃ¢â¬~.

Ã¢â¬ÅâœThe figures prove yet again that high cost, price increasing, badly run airport monopolies like the BAA simply donÃ¢â¬â¢t work,Ã¢â¬~ said CEO Michael OÃ¢â¬â¢Leary.

Ã¢â¬ÅâœHaving almost doubled passenger charges at Stansted over the past 18 months, it is no surprise that passenger numbers are declining at the BAAÃ¢â¬â¢s airports, while traffic in Ryanair, and at other more competitive airports across the UK has continued to grow in September.

Ã¢â¬ÅâœThese declining BAA traffic figures (which will get worse as we move through the winter) prove yet again that the BAA monopoly has failed British tourism, it has failed its airline users, it has failed consumers, and it must now be broken up in order to allow competition to provide efficient facilities and lower costs where the BAA monopoly has patently failed.Ã¢â¬~

By Bev Fearis

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Your Comments (1)

For Once, O'Leary is Spot On

BAA has proved beyond doubt its business model is a failure for all sectors of its airside and landside clients and that nothing short of dismemberment will offer a chance for LHR and other airports to equal airports in even emerging countries. The UK government should put all BAA airports up for public tender, and that BAA be required to compete against other bidders for the right to operate no more than one airport. It has already showed it is incapable of multi-airport operation. The Government should have a mind to the importance of all airports in contributing to the success of the 2012 Olympics which will reflect on UK citizens as well as the country.

By Jon Hewson, Monday, October 27, 2008