Soaring oil prices force airlines to cut flights

SOARING oil prices, which constitute between 30 % and 40% of operational costs, are prompting many airlines to slash down on flights.

In the region, Air Mauritius has already decided to reduce services effective from September, to Reunion as well as on some European routes, such as London, Rome and Munich.

Airline officials have made clear that this should not affect passengers, though the number of flights will be based on customer demand. Services will be slashed during the low season, in a bid to curb losses.

Airline official Donald Payen also commented on a charge of $15 levied on baggage in the US, saying all options are under consideration.

British Airways and Virgin Atlantic are also reported to be reviewing operational strategies to optimize services without inconveniencing passengers.

Soaring fuel prices, which reached $ 140 a barrel last week has cost some major carriers, such as Indian Airlines over $ 50 billion. In the US, Continental Airlines has sacked 3,000 employees and grounded 67 planes in a bid to cut costs, recently.



June 20, 2008
Copyright 2007: Seychelles Weekly, Victoria, Mahe, Seychelles