Ryanair shares fall as it announces plans to axe its Glasgow base

Ryanair shares are falling as it announced plans to axe Glasgow International Airport as a base for the budget airline.

Ryanair shares fall as it announces plans to axe its Glasgow base

Ryanair shares are moving lower Tuesday, as the budget airline announced plans to close its Glasgow base in November 2018. The move threatens 300 jobs at the airport, due to the likely loss of 500,000 of passengers the change will bring.

By 1230 BST, Ryanair shares were trading 0.86% lower at €16.08.

Ryanair announces winter routes

The news of the Ryanair decision to axe Glasgow International airport as a base for the airline, came as the Irish no frills carrier unveiled its winter schedule.

Ryanair said that from November, it would reduce the number of routes available from Glasgow International from 23, to three. However, it will increase the number of flights operating from Edinburgh airport.

“Ryanair regrets these cuts in the weaker Glasgow market where efforts to stimulate low fare demand are severely hampered by the continuing burden of APD,” said Ryanair’s Chief Commercial Officer, David O’Brien.

“As a result, we will transfer our Glasgow International based aircraft to Edinburgh in November where we will offer 11 new low fare routes,” O’Brien added in the press release.

However, while the change could lead to 300 fewer jobs at Glasgow airport, it will likely create 700 new jobs at Edinburgh airport.

Pilots' union call for Ryanair’s O’Leary to resign

Elsewhere, a European pilots’ union has called for Ryanair CEO Michael O’Leary to quit his post.

The European Employee Representative Council (EERC) – a group of mainly European pilots – has written to Ryanair, telling O’Leary they know pilots are continuing to exit the airline and that cancellations are inevitable.

In the letter, seen by Reuters, the EERC said: “By our assessment, it looks like further cancellations are inevitable due to the continuing resignations of pilots.”

The letter comes as an increasing number of Ryanair pilots have been asked to work on their days off. The same activity as occurred ahead of Ryanair’s 2017 mass flight cancellations when it didn’t have enough pilots available to cover all its planned flights.

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