Cheap flights boom over, says BA chief

[Metroland]

Britain's leading airline boss declared the era of cheap flights over yesterday as the price of oil hit a record high for the third day running.

Willie Walsh, the boss of British Airways, said the soaring cost of oil allied to global economic uncertainty would force airlines to raise fares in a scramble for survival that will see many of them go bust.

http://www.guardian.co.uk/business/2008/may/23/theairlineindustry.britishairwaysbusiness

 

[Respite]

Good, it's about time. We on the railway have to run eco friendly sheds whilst the airlines plow out millions of tons of pollution! Less planes, more trains.

 

[Max]

I can see a potentially large increase in the number of people holidaying in the UK if this is the case, and hopefully using trains to get to their destinations. Oil is at record highs, but the rail industry seems to be offering some great deals to encourage families out of their cars and off planes. For example, my mum, 2 sisters and I could all go down to Cornwall for as little as £40 return with XC (with FAM discount), and on decent trains in the form of HSTs. The rail companies should really be trying to publicise deals like this, which make travelling by rail to go on holidays far more economically viable than flights to Europe, where the £ is currently very weak against the Euro.

 

[paul1609]

Unfortunately the "travel element" of a family holiday is relatively small. Accomodation and food costs in the UK are much higher than elsewhere and until that changes I dont see peoples holiday habits changing that much.

 

[Metroland]

I don't think they will be going at all, with rising costs in food, fuel, etc eating into budgets. Some of the middle classes in this country can't seem to grasp that the bottom 50% of the population don't have foreign holidays every year, or even holidays at all. And only the top 20% have multiple flights - most of them business travellers whom now have the option of video conferencing over the internet.

I think the move in general will be towards day and weekend trips at home which is actually the biggest share of the £76 billion tourist industry now.

Anyway, Credit Suisse think it will be end of Ryan Air and Easy Jet around $140, when their low cost model breaks and they will be unable to fill planes and make a profit.

http://www.guardian.co.uk/business/2008/may/23/theairlineindustry.ryanair

 

[paul1609]

Not quite sure what class I belong too Metroland I thought that concept had gone some years ago. I'm definantly in the multiple flights category basically cos my employer (the Govt)
saves a lot of money that way. As I see it air fares would have to rise by around 300% for that not to be the case.

 

[Metroland]

Wasn't referring to you Paul, I was referring to the general belief from the better off that holidays are almost 'a right' and something everyone does. Clearly flying for you in some cases is essential. The point is, with cost pressures elsewhere, some people may have to join the bottom 50% who don't fly and the nature of demand supply means, when low cost airlines are no longer low cost, the model breaks. That's not my opinion alone, that the opinion of the airlines and the bodies that fund them.

The financial position of the industry is so precarious that fuel suppliers are demanding cash in advance because they don't trust them to pay the bills.

http://business.timesonline.co.uk/tol/business/industry_sectors/transport/article4004371.ece

 

[Mojo]

The business class-only airline has also called in the Administrators today

 

[Pumbaa]

Yes silverjet - Eos and Maxjet who were also business class only airlines have also folded in the last few months.

 

[Techniquest]

About time people started to realise that flying is not the only option when it comes to travelling. I should go and see my sister in Ireland, but I refuse to fly (as it gives me a chance to go bashing on the way there and back if I go by train). This philosophy confuses the hell out of my sister, her best friend and my Mum. How bizzare...

No, trains, buses/coaches and ferries will do me for travel between the UK, Ireland and Europe. I don't see the point in these "insect-leap" flights. Maybe the penny has dropped and other people are starting to notice this too.

 

[Metroland]

link dead

 

[vc-10]

You'd rather slog it across the Irish sea on a ferry than jump across with easyjet? While I refuse to fly Ryanair, why refuse to fly across with Aer Lingus, easyjet or BMI Baby etc?