Friday, 5 September 2008

Low cost airlines to Dennmark

Low-cost airlines are running out of options in Denmark, as Copenhagen Airport vetoes plans to build a low-cost terminal and Ryanair slashes its Danish routes.

Terminal A promised to be a haven for low-cost carriers looking to expand their routes to Copenhagen. However, Copenhagen Airport has refused permission to private investors to build the new terminal on airport property.

Backers of the proposed terminal had already reached agreement with Danish low-cost airline Sterling to use the new facility. The building was to cost 400 million kroner and would have been ready for 2010, according to the head of the project Mogens Kornbo.

The current crisis in the aviation industry is hitting many airlines hard and the low-cost models are looking for cheaper options.

'Copenhagen is one of the dearest airports in Europe and a low-cost terminal would help increase traffic. This is especially relevant now, when oil prices are high and all airlines are fighting to reduce their costs,' said Oliver Aust, the European head of easyJet.

Meanwhile, the largest European low-cost carrier has cut a third of its Danish routes. Ryanair has announced that the Pisa, Valencia and Madrid routes will close for the winter season, while flights to Dublin and Barcelona will be reduced in frequency. Its Barcelona route from Århus Airport will also be dropped and flights to London have been reduced to one a day. Airport authorities in both Billund and Århus said they expect some of the routes to reopen when there is more passenger traffic next summer. Ryanair made a similar move last winter, closing down routes to Malmo.