easyJet to cease basing crew and aircraft at Madrid from winter 2012/13
easyJet announced (20-Jun-2012) after a review of its Madrid operations it proposes to cease basing crew and aircraft at Madrid from winter 2012/13. easyJet intends to continue to serve Spain but to do so differently by moving its aircraft to other easyJet bases around its European network which it expects will deliver higher returns for the airline. Details include:
- Spain capacity cuts: easyjet said it will continue to operate to/from its bases across Europe. While easyJet proposes to reduce its capacity to/from Madrid by around 20% in the next financial year, the reduction to/from Spain will be 7%. After the proposed changes easyJet expects to carry over 12 million passengers to/from Spain next year;
- Spanish service passengers: easyJet said 70% of passengers on its Spanish flights start their journey from other parts of Europe and demand from these passengers remains strong;
- Future of Madrid crew and fleet: The airline is now reviewing a range of options for its eight Madrid based aircraft and 310 crew. All of easyJet’s pilots and cabin crew in Madrid will be offered a job in the airline’s other bases. easyJet will discuss the proposal with the easyJet European Works Council and the local employee representatives as appropriate;
- Effect on financial results for financial year ended 30-Sep-2012: The carrier said any restructuring costs will be accounted for in the current financial year. However, as the market price of jet fuel has fallen since easyJet’s outlook statement, the benefit from lower fuel prices should fully offset any restructuring costs, meaning the carrier's outlook remains unchanged;
- Overall capacity: easyJet expects its capacity to increase by around 5% year-on-year in the 12 months ended Sep-2012 and to continue to grow in the next financial year. [more - original PR]
easyJet: "The Madrid base is delivering returns below all of easyJet’s other bases. This is due to a combination of over capacity in the Spanish airline market, leading to low revenue per passenger, combined with high airport charges which have more than doubled in the last two years and will be subject to further above inflation increases in the coming years." Company Statement, 20-Jun-2012.