In the News - Airlines
Major airlines may mimic 'low-cost' airline surcharges
Major airlines could copy their 'low-cost' rivals by introducing baggage checkin and food charges in order to offset the effect of high oil prices. The head of the Oneworld airline alliance, which includes airlines such as British Airways (BA) and Qantas, said that the alliance would relax its rules to allow the charges if that was what the airline industry wanted. Fares are also likely to increase. While the oil price is $130 a barrel, many airlines (including BA) are technically unprofitable.
The news comes just days after BA and rival, Virgin Atlantic, announced increases in fuel surcharges (reported in 'In the News' on 30 May 2008).
(Sources: Guardian.co.uk)
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03-Jun-2008 10:31:26
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