BA boss says cheap flights era over
23.05.08
British Airways Chief Executive, Willie Walsh, said yesterday that the era of cheap flights over as the price of oil hit a record high for the third day running. He said the soaring cost of oil and global economic uncertainty would force airlines to raise fares in a battle for survival that will see many of them go bust.
A day after the world's biggest carrier, American Airlines, announced huge cuts in routes and jobs because of the rising oil price, Mr Walsh said budget airlines would have to increase fares and add-on charges such as baggage check-in fees and that many unprofitable airlines would simply go bust. Asked if cheap fares for customers who book flights far in advance will disappear, he said: ‘My view is yes, fares will have to rise.'
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