Job losses feared as airline suspends Galway service

A DROP in passenger numbers has forced Aer Arann to cancel its service from Galway this winter — a move likely to result in job losses.

The airline will suspend its Galway services to London Southend, London Luton, Manchester, Edinburgh and Waterford from the end of this month. It said these services are expected to be loss-making give the tough operating environment.

The airline said passenger numbers and revenue have continued to decline, while bookings have deteriorated. It said the routes are projected to be loss-making during the “thinner” winter season when bookings are historically lower.

Aer Arann’s chief executive, Paul Schütz said the reality is that the airline is not yet a year out of examinership and it is not in a position to continue to operate routes that are not commercially viable.

“We sincerely regret having to make this decision and we particularly regret the impact that this will have on our customers, on our staff in Aer Arann Regional and on the staff of Galway Airport,” he said.

Aer Arann’s 35 flight deck and cabin crew based in Galway will be offered the opportunity to move to Aer Arann bases in Shannon, Cork, Dublin and Waterford but the airline said that redundancies may arise, should some crew members not be in a position to relocate.

However, independent TD for Galway West Noel Grealish said the move puts up to 180 jobs at the airport in doubt.

“My first concern is for our customers and our staff and we will be doing everything we can for them in the days and weeks ahead,” said Mr Schütz.

“A number of issues have combined to bring about this decision, but the biggest driver is the economy which has led to fewer people travelling and a significant reduction in fare revenues which is being experienced by regional airlines all over Europe,” he added.

In the coming months Aer Arann will work with Galway Airport with the intention that a strategy be put in place for the re-launch of services from Galway at the beginning of the summer season in April.

Minister for Transport, Leo Varadkar said the decision was inevitable due to the commercial reality.

“Projected fare revenues and load factors for the winter months showed each route as being significantly loss-making with no prospect that bookings would recover to the point that services could have been continued from Galway on a commercially viable basis.”