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Just weeks ahead of the launch of new services from Angouleme-Cognac Airport, there are doubts as to whether the service will get off the ground at all, after local authorities who part fund the airport refused to underwrite potential losses, according to SudOuest.
The new services will cost 5.5 million euros per year to operate, with the majority of this outlay to be covered by ticket sales. President of the Chamber of Commerce (CCI) Daniel Braud wanted the Syndicat mixte des aéroports de Charente (Smac) to share the burden with the CCI of any potential deficit in the project, if ticket sales didn’t live up to projected levels. For the project to break-even, flights to Lyon require 25% occupancy, the route to Marseille needs 60%, whilst the link with Gatwick is based on 80% occupancy.
However, Smac are only prepared to offer the fixed amount that was earmarked for the previous agreement with Ryanair, a sum of 225,000 euros. They are reluctant to underwrite any potential losses over and above this amount, especially as ticket sales have been slow. It is believed that travellers, especially the British, have resorted to other airports since the withdrawal of Ryanair, and the routes to Marseille and Lyon have also failed so far to attract sufficient business.
Cityline Swiss have been informed of the decision by of the Smac, and are expected to respond over the coming days. The question though is whether or not they will continue under these conditions.
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