Tuesday, May 09, 2006

EasyJet and Ryanair

Last year, BA’s full-year results showed profit but there were signs that it was losing money on short European routes where no-frills carriers offer stiff competition. BA’s new oneway fares will now begin at $51.79. EasyJet and Ryanair have responded to the new prices by saying that that they were still cheaper than BA, and were not concerned by BA’s move. There is also the speculation that low fares cannot be sustained without a low-cost base.

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