MANCHESTER Airport has seen a dramatic fall in passengers as the aviation industry is plunged into its 'deepest crisis' since the 1970s.

New figures show there has been a fall in the number of flights through British airspace for the first time since the slump that followed the 9/11 terror attacks.

The number of passengers at Manchester Airport was down 112,852 in August compared with last year, a drop of 4.54 per cent, according to the figures from National Air Traffic Services.

And the number of take-offs and landings also fell by 2,178 last month compared to 2007, a drop of 10.15 per cent.

The stark figures emerged last night as British Airways boss Willie Walsh said the aviation industry was in the midst of its worst crisis since the age of mass air transport began more than 30 years ago.

He said: "Let no one be in any doubt. This industry is in crisis - a deeper, more protracted, more fundamental crisis than 9/11, the Gulf War or any of the previous shocks that have beset the industry since the age of mass air transport began in the 1970s."

News of the drop in flights and passenger numbers adds further gloom following the collapse of holiday firm XL Leisure, which left 85,000 holidaymakers stranded abroad.

The firm blamed `volatile' fuel prices and the economic downturn.

XL's collapse came hot on the heels of the failure of Zoom Airlines, which offered flights from Manchester to Canada, and the collapse of Macclesfield-based Seguro Holidays.

The drop in flights and passenger numbers appears to highlight concerns by BA boss Mr Walsh that the airline industry is being hit by a `devastating combination' of an economic downturn, declining consumer confidence and high oil prices.

Mr Walsh, in a speech to the London Chamber of Commerce, forecasted that more airlines would fail in the months ahead.

Crisis

He said: "The reasons for the crisis are now well known. Despite a recent and perhaps temporary fall, oil prices stand at extremely high levels and look likely to stay there.

"Meanwhile, the demand for travel has weakened because of the general economic downturn and a decline in consumer confidence. All in all, this is a devastating combination.

"Around the world, about 30 carriers have failed this year - and there will be more to come as we head towards the traditionally poorer returns of the winter travel season.

"The IATA, the airline trade association, has just forecast that losses for global aviation will reach £3b this year and £2.3b next year. So there is no doubt that the crisis is real."

The Manchester Airports Group, which operates Manchester, East Midlands, Bournemouth and Humberside airports, announced in July a 16.4 per cent rise in annual operating profits from £82.9m to £96.5m.

Passenger numbers across the group rose a modest two per cent from 28.6 million to 29.2 million, fuelled by strong performances at East Midlands and Bournemouth.

They fell by 200,000 at Manchester to 22 million.

And the new NATS figures also showed that flights across northern England, which are handled by air traffic controllers in Manchester, were 3,344 down in July on the previous year, a drop of 5.9 per cent. In August, they were down 4,474 on 2007, a drop of 7.9 per cent.

Chief executive Geoff Muirhead hailed an `excellent year' and said the group was in good shape to withstand turbulent times ahead.

He said yesterday: "We recognise that it is a tough market, but in the year so far the group is performing slightly ahead of our expectations and we are planning on this basis."

Aviation expert Chris Yates said: "A couple of carriers have gone from Manchester. Zoom collapsed in August and XL went to the wall last week.

"Travellers will vote with their feet. Given that we have a credit crunch, people are looking to holiday at home rather than go overseas. It will get worse before it gets better."

Ian Hall, director of operations at NATS said: "The aviation industry has always been a barometer of the wider economy, so it should not come as any surprise to see a slight slowdown, particularly since the airlines have signalled some cutbacks to services."


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