Business Weekly - Cambridge, UK

American Airlines has blamed "skyrocketing fuel prices and a softening economy" for its decision to pull its Stansted to New York service - for the second time.

Effective from July 2, the discontinuation of the route marks a very short recent stay in the region for American, who only launched the service to New York's JFK airport in October last year.

It is the second time the airline has 'cut and run' from the Essex hub, having failed to sustain the route in the late nineties.

Although market conditions in the aviation industry are bleak, this news has taken some within the East of England business community by surprise, especially given that American Airlines recently repeated to Business Weekly its commitment to a second Stansted route. That service was due to be launched in August.

Continental Airlines also withdrew its service in the wake of the September 11 attacks.

It represents a major blow to Stansted's aspirations of world-class status, following as it does, the slump into bankruptcy of its other two US carriers - MaxJet and Eos in January and April respectively.

Having started the year with three transatlantic carriers, it faces a medium term future with no such offering. Stansted's management has made no secret of its desire for a credible long-haul network as part of its bid to build a truly world-class airport worthy of a two runway operation.

A senior BAA source told Business Weekly: "This is disappointing news for a region that has demonstrated that there is a significant demand for long-haul business and leisure travel from Stansted.

"But economic realities have kicked in and the current downturn coupled with the crippling cost of oil continues to severly challenge the aviation industry. American's announcement about its Stansted service has been made at the same time as it rationalises other routes in the US, so the story is one of global proportions.

"Our message is one of determination to weather the present situation and continue with our work to attract long-haul carriers to Stansted. We do not forget that Stansted is a resilient business with more scheduled routes to EU destinations than any other airport in the world so will redouble our efforts to support inward investment and encourage inbound tourism and underpin the ambitions of businesses in our region to the very best of our ability."

American said it will continue to offer its full schedule of flights between JFK and London's Heathrow Airport.

According to a statement from American: "This decision is among a number of first-round reductions to American's flight schedule as part of the airline’s previously announced plans to reduce capacity in an effort to significantly reduce costs and create a more sustainable supply-and-demand balance in the marketplace. These actions come in the face of skyrocketing fuel prices and a softening economy."

The airline said that customers impacted by the schedule changes will be contacted starting next week and re-accommodated on alternative flights.

American said it will continue to make additional schedule reductions in other markets and will "assess the location- and route-specific impacts of those changes." It plans to retire 40-45 mainline aircraft and 35-40 regional jets over the coming months.

Ironically the US carrier least-fancied to weather the storm in the airline industry - Luton Airport's Silverjet is officially the 'last man standing' in terms of the East of England's transatlantic air links. However, even the sole survivor is engaged in a life or death struggle for funding.

  
 

TrackBack URI for this entry

Comments (0)

Subscribe to this comment's feed

Show/Hide comments

Show/Hide comment form