A BUDGET airline today blamed the fuel duty hike for its decision to pull out of Scotland.

Air Berlin is to end its twice-daily flights from Glasgow to Stansted - with onward connections to the German capital, Dusseldorf, Leipzig, Nuremberg, Munster, Hanover and Paderborn.

A spokeswoman said: "Our last flight will be on October 31. The doubling of the air passenger duty made our UK domestic hub operation commercially difficult."

One of Europe's biggest and most popular airlines, Air Berlin ferried passengers from Glasgow, Manchester and Belfast through Stansted on special transfers.

Air Berlin offered one-way fares for £29 including taxes when they were launched in 2005.

But the doubling of duty from February 2007 made their model unworkable because passengers flying through Stansted were forced to pay the tax twice.

The spokeswoman added: "We had charges of more than £20 on lead-in fares of £24. That meant we were operating in a minus."

Air Berlin was thought to be building up a successful customer base in Scotland with its aircraft fairly full, often with German tourists.

Talks aimed at luring Air Berlin back to Glasgow are understood to be under way.

A spokesman for Glasgow Airport said it was disappointed at the move.