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EDITIONS
Wednesday, 29 May, 2002, 07:19 GMT 08:19 UK
�60m bid to increase Scottish flights
Glasgow Airport
Aviance is to close its operation at Glasgow Airport
Airport operator BAA is to set aside �60m to try and attract more direct international flights to and from Scotland.

The company said it will offer discounts on airport charges and provide additional marketing support in an effort to entice airlines to set up new routes.

The announcement is being seen as a response to critics who have accused the company of abusing a dominant position in the market by charging high prices.

BAA runs Glasgow, Edinburgh and Aberdeen Airports.

Edinburgh Airport
Edinburgh Airport is run by BAA
The company said the money being commited to the initiative demonstrates its long-standing commitment to Scotland.

The investment is open to all airlines, but it is thought likely to initially attract the no-frills carriers flying to European destinations.

BAA hopes that the announcement will silence its critics.

They have accused the authority of over-charging airlines who use the airport and of stifling competition.

Earlier this week Glasgow City Council complained to the Office of Fair Trading.

Handling firm

The OFT confirmed that it had received a complaint about ownership of Glasgow and Edinburgh Airports.

However, it said it was too early to say whether a full investigation would follow.

The announcement comes the day after passenger and aircraft handling firm Aviance announced that it is to close its operation at Glasgow Airport.


Both of these operations were looking decidedly unprofitable

Aviance spokesman
The company blamed the downturn in the aviation industry since 11 September for the move.

Aviance, which employs 195 workers at Glasgow, is also shutting its office in Cardiff, leaving a question mark over 45 further jobs in Wales.

However, the company said it would work with unions and employees to minimise the impact on workers as far as possible.

A spokesman said: "In the case of our Cardiff and Glasgow operations, the business was marginal prior to the downturn and the reduction in services in recent months has created a situation that is untenable.

"It is therefore with very much regret that we have to announce our intention to withdraw from operations at Cardiff and Glasgow airports.

Baggage sorting

"Both of these operations were looking decidedly unprofitable."

Aviance, which employs about 4,500 staff across the UK, provides staff to work in check-in and boarding operations as well as baggage sorting and loading.

The company said it had no plans to shut down any of its other operations in Edinburgh, Aberdeen, Dublin and across England.

Donald Munro of the T&G union said it would do all it could to maximise job security and protect "an essential service for the public".

 WATCH/LISTEN
 ON THIS STORY
News image Consumer affairs correspondent Gillian Marles
"The move may be seen as an attempt to silence BAA's critics"
See also:

13 May 02 | Scotland
24 Sep 01 | Scotland
11 Sep 01 | Scotland
14 Aug 01 | Scotland
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