Low-cost carriers will fuel Manchester’s growth, says Cornish

MANCHESTER Airport could gain another 7m passengers by 2018, with “a significant portion” of that coming from low-cost carriers, group chief executive Charlie Cornish said.

Speaking to TheBusinessDesk.com at the launch of Ryanair’s new base from the city, Cornish said that he believed there was plenty of scope to grow the proportion of low-cost carriers operating from Manchester without damaging existing business.

“We want a balance and there is an optimum level, but there is scope to grow the sector significantly over the next five years,” he said.

He argued that low-cost carriers such as easyJet, Jet2.com and Ryanair, currently only make up around 10% of Manchester Airport’s traffic, compared to 90%-plus  at Stansted and at nearby competitors such as Liverpool and Leeds/Bradford.

Ryanair’s aspirations to put 5m passengers a year through Manchester Airport within five years displays a marked turnaround in the relationship between the airline and Manchester airport since a public spat two years ago which saw the Irish airline withdraw seven out of its eight routes from the city.

O’Leary said yesterday there was now a mutual respect between the two sides, describing Manchester airport’s commercial team as “a bunch of tough operators”.

For his part, Cornish acknowledged that in a difficult market Ryanair was one of the few short-haul airlines that can offer a major increase in passenger numbers.

“You just need to look at the airlines that are ordering planes, and Ryanair are pretty well up there,” he said. Indeed, the airline recently ordered 40 new Boeing aircraft – some of which are being used on the Manchester routes – which has taken its total fleet size to over 300 jets.

“Ryanair has a passenger base of over 70m now, so it’s key for Manchester and for one or two of the other airports we’re operating,” said Cornish. “Firstly, because they’re growing and secondly because they offer destinations that people in our catchment want.”

Cornish added that growth in passenger numbers and improvements to customer service meant that after the first six months of its 2011/12 financial year, Manchester Airport was on track to achieve its target of growing  last year’s earnings figure of £111.8m by 10%.

“Passenger numbers are up by 8%, which is good, and if you look at our market share compared to other UK airports, we are gaining proportionately more.

“That’s a key measure, particularly when the economic climate is a little volatile. We need to know that when we’re adding new routes we’re improving market share,” he said.

He argued that the airport has a similar catchment area to Heathrow, but as London airports become increasingly congested, Manchester and other regional airports will offer an alternative.

“Probably after Heathrow, Manchester offers the best opportunity for them,” he said.