Threat of Atlantic air fares war

Press, 5 March 1984, Page 8

Threat of Atlantic air fares war

From LES BLOXHAM, travel editor, in Honolulu

Braniffis rising from the ashes of bankruptcy ironically coincides with the threat of a new Atlantic fares war which could spell. heavy losses for airlines.

Two British carriers triggered the cost-cutting alert with the release of their plans to offer one-way fares of about $llO for flights from London to New York early next year.

British Caledonian announced its intentions to sell the fare, subject to British and United States Government approval, in ah attempt to thwart the launching of a new airline, Virgin Atlantic, with fares of $220.

Virgin Atlantic immediately hit back with a warning that it would meet British Caledonian’s challenge with a one-way fare of $lOB “or lower if necessary.” At present the cheapest available one-way fare from New York to London is about $222.

Although the long-silent Braniff has no immediate plans to launch itself across the Atlantic, it has resumed flying to 19 American cities two years after collapsing under the weight of debts totalling SUSI billion.

Braniffs resurrection was made possible by an injection of SUS7O million from the international Hyatt Corporation. The airline, formally America’s eighth largest, is flying a greatly trimmed

fleet of 30 Boeing 727 s backed by 2200 employees. Another troubled airline, Continental, is continuing to fly in the face of prolonged ? retests from former pilots, 'esterday they entered their fourth month of picketing outside one of the airline’s ticket offices on the main avenue at Waikiki. Similar protests have been organised by the Pilot Union across the nation.

The 14 pilots in Honolulu, neatly attired in their uniforms and displaying banners carrying statements attacking Continental’s president, Frank Lorenzo, distributed brochures to bewildered holidaymakers. Continental is being kept aloft by the support of nonunion pilots.