Ryanair, an Ireland-based low cost airline, has recently announced the cancellation of 21 routes from its Canary Island destinations.
Ryanair has reported that the Government of the Canary Islands has terminated its low-cost traffic growth incentive scheme agreement with the airline, as a result of which, the airline has cancelled the 21 routes and reduced flight frequency from the four Canary Island destinations of Gran Canaria, Fuertaventura, Lanzarote, and Tenerife.
The route cancellations and reduced frequencies are expected to result in a 26 percent fall in the airline’s traffic from the Canary Islands, from the current 4.35m per annum to 3.2m per annum. The route changes will be effective from November 2012.
The airline deputy chief executive, Michael Cawley, said, ‘Ryanair sincerely regrets the Regional Government of the Canary Islands’ decision to renege on its low-cost growth incentive agreement with Ryanair. Instead of more than 4.3m passengers and the thousands of local jobs which this traffic sustains, Ryanair’s Canary Island traffic will now fall by over 26 percent to just 3.2m passengers p.a. (per annum).
Ryanair will cut 21 routes and make frequency cuts on 32 other routes, with the loss of over 140 weekly flights. Sadly, over 1.1 million passengers p.a. and over 1,100 jobs will be lost on the Canary Islands to other lower cost airports elsewhere in Europe, where Ryanair continues to grow. These route and traffic cuts can be reversed but only when the Regional Government reintroduces its agreed growth incentives. Rest assured that Ryanair will keep trying.’