BAA grounded by falling passenger numbers

By DAILY MAIL REPORTER
Updated: 03:39 EST, 10 June 2009

BAA saw passenger numbers fall 7.3 per cent last month after the recession impacted North Atlantic traffic and airlines slashed capacity at Stansted.

Airlines are reducing schedules in the wake of the economic downturn.

The company, which operates seven UK airports, said demand remained weak after monthly figures showed it handled 11.8 million passengers in May.

Heathrow recorded a smaller drop of 3.9 per cent on a year earlier as BAA said the airport demonstrated its 'resilience' and importance as an international hub.

Gatwick improved on recent trends with a decrease of 6.5 per cent but traffic at Stansted in Essex slumped by 18.5 per cent as BAA said some airlines continued to reduce schedules in response to the economic downturn.

The operator said today's overall figures were in line with trends recorded since December.

Across market segments, BAA said European scheduled traffic was down by 5.2 per cent and North Atlantic traffic by 9.1 per cent. Other long haul routes recorded a collective 1.8 per cent decrease, but domestic traffic was down by 10 per cent.

Edinburgh was the only airport to record an increase in traffic, with passenger numbers up 1.4 per cent due to the introduction of new low-cost services. Glasgow saw a 11.7 per cent drop, while passenger numbers at Aberdeen were down by 14.1 per cent and by 12.5 per cent at Southampton.

BA is currently waging a battle against the Competition Commission's (CC) decision to make it sell three of its airports.

The Commission recently ruled, after a long investigation, that BAA's ownership of seven UK airports was anti-competitive.

The CC said that BAA must sell Gatwick and Stansted airports as well as either Glasgow or Edinburgh. BAA had already decided to sell Gatwick in West Sussex and said last month that that sale process was continuing.