AB AIRLINES commercial director Robert Hardless has resigned as the carrier revealed a huge increase in losses.
Latest figures show that losses have risen to £10.6m in the year to November 30 1998. The 1997/98 deficit was £2.25m.
Chairman Brian Beal said low-cost airlines have contributed to AB Airlines’ poor results. “When you have got Go flying 40 people to Lisbon at cheap fares it is difficult,” he said.
“We are also suffering from exchange rates and the strong pound.”
Hardless, who will leave at the end of June, was instrumental in setting up new routes for the carrier, but a combination of intense competition and weak foreign currencies have forced ABto axe these services. It is not known what his future plans are.
In the last few months, AB has dropped services to Lisbon and Berlin and pulled out of Stansted and Birmingham, and the carrier’s commercial team was made redundant last month (Travel Weekly April 5).
AB is switching to an aircraft leasing business as its scheduled routes reduce.
Meanwhile, Beal confirmed AB has received £2m from Virgin Atlantic for the sale of Gatwick slots. AB will receives a part payment next month and the rest in November. Some of the money will be used to pay off a £500,000 loan which the carrier took out in April.