EasyJet may cancel some routes

Hotel News - 28/03/2011

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As the price of oil continues well above the threshold of $100 per barrel, easyJet’s chief executive has issued a warning that it could close down some of its routes. Carolyn McCall, the CEO of budget airline brand easyJet, said high fuel prices risk forcing airlines to dramatically curtail coverage.

Speaking at the launch of her low-cost carrier’s longest ever scheduled route, the head of easyJet said the aviation industry faces a ‘shake out’. She says continued high prices for fuel could lead to routes being withdrawn and fares being increased.

EasyJet has kicked off its new route to Amman. By easyJet standards, the new route is a marathon five-hour flight from London to the capital of Jordan. McCall said carriers would have no choice but to seriously review their flight networks as a way to deal with shrinking profit margins.

McCall said airlines would be a lot more ‘brutal’ in their decisions about which routes to maintain. Giving her own airline’s recent decision to stop flights to Helsinki in Finland, she said her carrier would be extremely tough with routes that were not working.

However, McCall insisted easyJet would defend and strengthen its position in three main strong markets of London, Paris and Geneva. McCall announced a major attack on corporate travel budgets with the launch of flexible tickets and a new corporate sales operation that would market easyJet to multinationals.

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