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Two More Carriers Joining the Capacity Cutting

July 15, 2008 at 1:35 PM | 0 Comments

Both British Airways and Ryanair will cut capacity this winter, joining the ranks of American carriers that have already announced cutbacks because of the escalating cost of fuel. BA chairman Martin Broughton said today that his airline would be making bank if oil still cost $85 a barrel, a price last seen in February. But instead of bragging about handsome profits, he declared that he and his colleagues are in the midst of

Perhaps the biggest crisis the aviation industry has ever known.

British Airways CEO Willie Walsh echoed those sentiments, saying that fares and fuel surcharges will have to go up. He's planning to trim up to five percent of the carrier's flights between October 2008 and March 2009, with short-haul flights the most likely to disappear.

On the LCC front, Ryanair chief and blowjob aficionado Michael O'Leary says capacity out of Dublin will decline by 12 percent by the end of the year. The airline blames fuel prices, of course, but also says that the Dublin Airport Authority "monopoly" has priced the cost-concious carrier out of the city.

Maybe its time for Ryanair to look into ancillary revenue from washing machine sales?

Related Stories:
· BA Chief Says Air Fare Increase Inevitable [Telegraph]
· BA: Fewer Flights, Higher Fares [PA, via Google]
· BA Warns Oil Prices Will Wipe out Profits [UK Times]
· Oil Prices coverage [Jaunted]

[Photo: dolanh]

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Author Photo: pbb by pbb

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