New row breaks out on air fares

Press, 20 June 1984, Page 17

New row breaks out on air fares

Another transatlantic air fares war now seems certain to break out this year, with up to 5000 passengers a day paying as little as $7O to travel between London and New York. The low-cost American carrier People Express has begun exploratory talks with British officials about increasing its daily flights from one to five, using Gatwick, Heathrow, Stansted, arji Manchester airports.

An authoritative source says that this approach will be approved provided British airlines are willing and able to carry an equal number of ultra low-cost, passengers. People Express charges $l5B for the trip from Gatwick to Newark airport, Tnear New York.

The airline has been overwhelmed by the response to its cheap fares. Recently it began to accept bookings for the period from June to mid-July and sold all 41,000 seats in five hours.

This month, the new British airline, Virgin Atlanijc, controlled

by the pop impressario, Richard Branson, will enter the route, charging $166 one way, with a $l4 surcharge at week-ends on its daily flights. The demand for these reduced fares is much larger than the. two airlines will be allowed to «ieet

this year, so many travellers will be forced to pay $376 one way on weekdays and $394 at week-ends on British Airways, Pan American, or T.W.A. Although the established carriers will argue that their prices are - reasonable, cost-conscious passen- *

gers torceo to pay tne nigner lares will undoubtedly consider that they are being “ripped off.” British Airport Authority officials fear that Gatwick could be swamped this year by would-be travellers sleeping at the airport for days hoping to get a cheap flight to New York — reminiscent of the Laker era, when a marquee was erected there to house them, t — Copyright, London Observer Ser- ' vice.