Taxes ‘not a factor’ as airline giant expands city services
ONE of the world’s biggest airlines has expanded its operations at Glasgow Airport – opening up hundreds of connections around the world.
Lufthansa, the fourth biggest airline in terms of passenger revenue, has started daily flights from Glasgow to Frankfurt.
The route in the main hub airport in Germany allows connections to the US, China and all over Europe.
Glasgow Airport, which recently suffered the loss of Ryanair flights, said the expansion was a boost to the city.
Ryanair blamed the Scottish Government failure to cut Air Passenger Duty as a reason for pulling out of Glasgow.
Lufthansa however, said air taxes did not affect its decision making.
Andreas Koester, Lufthansa senior UK director, said APD doesn’t impact us on profitability but it is there and we have to deal with it. The flights have to be commercially viable. APD is one factor but it’s a small factor.
“It has an impact but but it won’t impact on our decisions to grow our network.”
Glasgow Airport said APD is more relevant to budget airlines, like Ryanair.
Francios Bourienne, Glasgow Airport Commercial Director, said: “For low-cost airlines its relevant when £13 of a £19.99 seat is going to the government. It makes profit per seat very low.”
He said for premium airlines, like Lufthansa, which offer business travel, it is less important.
He added: “There are better margins with business travel.”
Lufthansa said the new service offers greater choice, not only for Germany, but all over the world with Lufthansa’s network.
Mr Koester added: “This new daily service opens up a huge number of leisure and business opportunities to Scottish passengers.
Business leaders welcomed the flights, which connect Glasgow into 209 destinations in 74 countries through Frankfurt and Munich, where Lufthansa also flies to from Glasgow.
Stuart Partick, chief executive of Glasgow Chamber of Commerce, said: “Frankfurt is a principal German city, with an airport that is one of the top three hubs on the European mainland, giving access to markets worldwide.
“It will be a source of opportunities for our business community as they travel the globe in sectors such as food and drink, engineering and financial services.”