ERA claims charges were fatal for Euro Direct

THE EUROPEAN Regional Airlines Association (ERA) is holding up the demise of UK regional Euro Direct as an example of how airport charges are threatening smaller carriers.

Euro Direct was to have ceased operations by 26 February in a controlled fashion - promising to pay staff and creditors in full.

Chairman Neil Hansford, who arrived with a successful track record at TNT and British World Airways, says: "Even when you get it right with superb employees, the European cost-burden does not allow a reasonable return on funds invested."

Hansford claims, soaring handling fees at the European airports, were heavily responsible for Euro Direct's closure. A European Commission probe into airport-handling competition continues.

"It adds up to over 50% of costs which are almost beyond control and being dictated by other people." The Bournemouth-based carrier had run British Aerospace ATP and J31 turboprops, but returned its ATPs in January.

Source: Flight International