Air Transport World

European flags react to new realities. (News Briefs).(carriers reduce fares and ease restrictions)(Brief Article)(Statistical Data Included)

Faced with spreading low-Fare competition and slack business demand, European flag carriers continue to slash fares and ease restrictions in reaction to the evolving marketplace. Airlines following in the footsteps of bmi british midland and SAS include British Airways, Lufthansa and KLM.

In June, BA cut Fares by up to 80% on 42 European routes and on 11 domestic routes operated by Regional subsidiary BA CitiExpress while easing restrictions on the use of discounted fares. In July it added 37 more routes. BA already had cur prices on 18 domestic routes at the beginning of April.

Lufthansa in late June announced immediate fare reductions of 38%-63% on economy tickets for off-peak travel across its domestic network, where it is under pressure from Air Berlin and DBA--formerly Deutsche BA--and faces looming competition from Virgin Express (next item) and a possible TUI/Germania joint-venture airline. …

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