'Open skies' deal forces down price of summer flights
By Peter Woodman and Arifa Akbar
Published:12 May 2007 Independent
http://news.independent.co.uk/uk/transport/article2534046.ece
A boom in low-cost transatlantic air travel is expected as a host of airlines launch fiercely competitive summer sales.
British Airways announced it was offering 50 per cent off some business class fares, while other airlines have slashed prices on economy seats. The best BA deals are on flights to America, with business class flights to Dallas for £1,399, a saving of £1,457, and to Atlanta for £1,349, saving up to £1,293.
Other business class offers include Orlando and Tampa, from under £2,000, and Baltimore and Philadelphia, from £1,249.
BA is also offering "red" business class returns to Montreal, Toronto, St Lucia, Port of Spain, Buenos Aires, Rio de Janeiro and Tokyo at reduced prices. Seats were on sale yesterday until the end of June for travel on dates in July and August.
The price-cutting move follows an announcement by the Virgin chief, Sir Richard Branson, that he plans to undercut budget rivals by offering "no frills" flights to America.
Sir Richard said last month that he would "not be beaten on price" after Ryanair's chief executive, Michael O'Leary, said the budget airline was planning to offer one-way transatlantic travel for £7 within four years. Branson allegedly retorted: "If someone launches a £7 flight, we'll launch a £6 flight."
The cheaper flights could be a response to the "open skies" deal between the EU and America, which is likely to increase transatlantic routes, with the possibility of cheap flights to the US.
Friends of the Earth warned that aviation was the fastest-growing source of climate change emissions in Britain and that the cut-price flights could have a devastating impact. Tony Bosworth, the group's senior transport campaigner, said cheaper fares would "simply encourage more people to fly across the Altantic causing more pollution and adding to climate change".
Virgin Atlantic used to be one of only four carriers permitted to fly to America from Heathrow, but it will face far stiffer competition in the aftermath of the open skies agreement.
The budget airline Zoom recently announced it was planning to start daily flights between Gatwick and JFK in New York from 21 June. Its cheapest one-way fare is under £130, including taxes and charges.
Meanwhile, BMI revealed it is launching transatlantic services from Heathrow from March next year. The airline is not permitted to operate from the airport until the open skies agreement takes effect. The firm's chairman, Sir Michael Bishop, said it would "create genuine competition".