Ryanair Cuts 40% at Budapest Base Along with 800 Jobs

Ryanair's Michael O'Leary

Ryanair CEO Michael O’Leary

Ryanair today announced 40% cuts at its Budapest base with the closure of 10 routes and loss of over 280 weekly flights from 10 Jan 2013 after the Hochtief-run airport increased charges, refused to provide efficient facilities and failed to offer a competitive cost base for future growth offered by Ryanair.

Ryanair’s Budapest traffic will fall by 800,000 pax p.a. (from 2m to 1.2m pax) leading to the loss of up to 800 “on-site” jobs.

Hochtief’s failure to agree a long term growth deal with Europe’s largest airline is further proof that Budapest Airport has no interest growing Hungarian tourism, traffic and jobs as it repeatedly increases charges even as its traffic declines. This was confirmed by Patrick Bohl (Budapest Airport) who recently admitted that ‘budget airline’ passengers pay more than Malev transfer passengers, with Budapest enjoying “probably the best recovery any airport has seen when they lost a national carrier.”

These Budapest cuts (effective 10 Jan 2013) will include:

  • 5 to 3 based aircraft
  • 30 routes to 20 (down 33%).
  • From over 280 weekly flights to less than 170 (down 40%).
  • 2m to 1.2m pax p.a (down 40%).
  • Frequency cuts on 9 of 20 other routes
  • The loss of 800,000 pax p.a. and 800 “on-site” jobs at Budapest Airport.

Ryanair regrets these cuts and confirms that they can be reversed if a competitive cost offer and efficient facilities become available at Budapest Airport.

“Ryanair regrets Hochtief Budapest Airport’s decision to increase charges, impose inefficient facilities and reject our proposals for a competitive growth offer which would have allowed Ryanair to grow traffic and routes at Budapest.

Ryanair will now switch 2 aircraft from Budapest with the loss of 10 routes, reductions on 9 others and the loss of 110 weekly flights. Sadly, 800,000 passengers p.a. and over 800 jobs will be lost by Budapest to other airports elsewhere in Europe, where Ryanair will continue to grow.

With 1.2m passengers and 20 routes, Ryanair will remain one of the 2 largest airlines operating at Budapest, but Hochtief cannot continue to ignore the competitive marketplace, where airports all over Europe have been reducing costs and offering efficient facilities in return for traffic growth. We hope there is a way to reverse these cuts to ensure further Ryanair growth at Budapest.”

RYANAIR’S BUDAPEST ROUTE CANCELLATIONS

  • Baden
  • Lubeck
  • Birmingham
  • Malaga
  • Bologna
  • Munich
  • Dusseldorf
  • Oslo
  • Krakow
  • Thessaloniki

Ryanair

Comments

  1. Robert Johansen says

    Wow a complete Ryanair press release made to look like a real news story! It must take a lot of effort to regurgitate the hard work of a PR flack and with your byline at the top, pretend that you wrote it. At least have some pride and just type in a disclaimer that this is not news, its a company’s spin on why they’re so cheap. Unless you like brown-nosing the likes of Michael Cawley because you’re doing a pretty good job at that.

  2. Robert Johansen says

    Excuse me, I meant Michael, O’Leary but then again you might have your nose up a lot of places including Mr. Cawley so….

  3. JENNIFER says

    Hold your horses folks, I read a press release and not journalism, I know journalists work when I see it!!

    I have read this on other sources and consider it to be a true and factual representation of Ryanair activity. They do this all the time, closing or downsizing those bases that refuse to sing their tune regards charges, claiming jobs lost as a result of airport management refusing to submit to the Ryanair finance and business model.

    What you should keep an eye upon is the creation of ‘new routes/services’ that just happen to replace those services cut by way of new airport pairings…e.g., the closing Budapest – Birmingham service………..a probable announcement that Ryanair’s Birmingham base announces a new service to Budapest!! Remember that Ryanair has bases littered all over Europe and can manipulate them and gullible press types to report ‘news’…….am I being simplistic or what?

  4. David says

    I really can’t see how one carrier reducing flight numbers can result in 800 job losses, if that figure is correct they must have been way over staffed.

  5. JENNIFER says

    David Sir, the usual time lag means that I respond thus..

    There is a new comment to Ryanair Cuts 40% at Budapest Base Along with 800 Jobs.
    Comment Link: http://airnation.net/2012/11/22/ryanair-40-percent-cut-budapest/#comment-24718
    Author: David
    Comment:
    I really can’t see how one carrier reducing flight numbers can result in 800 job losses, if that figure is correct they must have been way over staffed.
    Permalink: http://airnation.net/2012/11/22/ryanair-40-percent-cut-budapest/
    Manage your subscriptions: http://airnation.net/comment-subscriptions?sre=JENNYJET%40HOTMAIL.CO.UK&srk=9a931df4681df2ac476301ee0affb61c

    …….Okay, how many pilots are required to operate a regular service between a point to point, how many cabin crew are required, ground crew to service the aircraft on any service turnaround, the highly profitable airport check-in staff generating charges for those basic things that full service carriers treat as included in the ticket price etc., so if Ryanair closes a service maybe 50 people are surplus to requirements and Ryanair are ruthless in that regard.
    So if Ryanair close an airport base then the numbers add up….they are masters of manipulation of airports to their own ends and sometimes they cave in and agree to vastly reduced charges to keep people in jobs.
    That is Ryanair folks.

    • Lee Ferrara says

      Jennifer,

      Keep in mind that your above comment contains 2 or more links. When that happens, the comments are withheld for moderation until we can read and approve them.

  6. Terence says

    The Walmart business model comes to the airline industry. I guess both the Walton’s and O’Leary can afford the best ‘Journalism.’ Won’t see me darken either door.

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