The boss of British Airways has defended the firm’s controversial plan to axe services between Aberdeen and London – and blamed UK ministers for raising taxes.
Keith Williams, executive chairman of the carrier, said the three flights a day to London City Airport had made a loss since being introduced two years ago.
He claimed the UK Government was partly responsible because of soaring rates of air passenger duty (APD).
Local politicians this week challenged BA to say whether the route had made money, amid widespread anger at its decision to cancel the service from October.
Prime Minister David Cameron described the links as “absolutely vital”, while business organisations such as Oil and Gas UK have also criticised the move and backed the campaign to force BA into a rethink.
But in a letter to the Press and Journal, Mr Williams defended the airline, and pledged to protect Aberdeen’s links to London Heathrow.
He said: “Despite the popularity of our Aberdeen to London City route with some customers, including a number of MPs, I regret that there have not been enough customers to make the route financially viable.
“However I would like to stress that British Airways will continue to operate more than 110 flights a week between Aberdeen and London Heathrow.
“The Aberdeen services to Heathrow perform well due to strong levels of passenger traffic connecting on to our long-haul flights to oil-related destinations such as Houston, Abuja and Middle East destinations.
“However, the London City route has been loss-making since its inception in 2012.
“Sadly, we see no prospect of it becoming profitable, given current demand and the level of forward bookings.”
Gordon MP Sir Malcolm Bruce, the deputy Liberal Democrat leader, revealed BA’s plans to cease the services in parliament last week, and has led the criticism of the decision.
But Mr Williams pinned part of the blame for the decision on the Treasury, saying: “Air Passenger Duty has played a significant part in this route failing to reach commercial viability.
“It would be encouraging if Sir Malcolm Bruce continued the campaign against APD, which has been repeatedly increased by the government he supports.”
Scotland’s airports and the Scottish Government have repeatedly called for APD – one of the highest rates of aviation tax in the world – to be cut or devolved to Holyrood.
Aberdeen, Edinburgh and Glasgow airports have warned that they will lose 2million customers over the next three years because of APD.
Sir Malcolm raised the issue at Westminster yesterday.
He said later: “I am continuing to pursue this issue with British Airways and have requested a meeting with the company involving fellow parliamentarians from the north-east and business community representatives to make the case for at least introducing a consultation.
“As the nation’s flag carrier, I hope that BA can offer assurances that this decision is not just about the bottom line but will recognise their shared responsibility for business development.”
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