Luton Airport to Lose EasyJet

by Emily DUNBAR on August 31, 2009

The decision to leave Luton airport will not be an easy one.  It has long been the “spiritual home” of budget airline EasyJet, as it is where the airline first started.  However, this is exactly the decision EasyJet must make, as raised airport fees have them wondering if they can remain financially viable at Luton.  Recently, raised airport fees in British airports have caused turmoil in the industry, especially for budget airlines like EasyJet and Ryanair, who rely on cheap fares to stay competitive with the larger airlines.  Instead of raising their own fares, the airlines are considering if a move might be the better option.

Airport taxes represent a fairly large portion of the overall ticket fare, so if airport taxes go up, the fares will have to correspond.  With the economy already hurting the travel industry at large, many airlines in the United Kingdom are wondering if these new taxes will drive even more business to cheaper airports on the European continent.

“Talks are still continuing between EasyJet and the airport about airport costs and the future growth strategy, which would allow us to invest at the airport to create much needed jobs,” said EasyJet spokesman Andrew McConnell.
If EasyJet were to leave Luton, they would be taking thousands of jobs with them, which would be a devastating blow for the local economy.

The above quote comes from the Daily Mail.  For more information please visit their website.

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