YORK credit card and identity insurer CPP is to axe its airport lounge access division in a bid to increase focus on core operations.

The Holgate-based firm, which employs 550 people in York, is to bring to an end its Airport Angel brand.

CPP said it is in consultation with a small number of staff working in the division, who will be offered re-deployment elsewhere in the group.

In its statement about the closure, CPP said the loss of Airport Angel, will not have a “material impact” on the group’s profitability, either this year or beyond. The move is the first strategic changed implemented by interim chief executive Stephen Callaghan, who was appointed in April following the departure of Brent Escott. Mr Callaghan said: “The decision to cease providing airport lounge access services is a further step forward towards CPP becoming a more focused, sustainable and profitable business.”

CPP said it will now focus operations on its assistance products, including credit card and identity insurance, which are sold through business partners and direct to consumers. The group is still recovering after being fined £10.5 million by the Financial Conduct Authority in 2012 and paying out £65.8 million in compensation to customers over a mis-selling scandal.

Last year CPP closed two UK offices and four overseas offices, found £20 million of cost savings and raised £20 million in equity funding, while reducing its pre-tax losses from £32.9 million to £6.7 million.