Budget Airline News

Silverjet Collapse Has Silver Lining For British Airways

British Airways' shares climbed by 17.5p to 232.5p on the back of Silverjet's collapse.

Silverjet joined fellow business class only airlines, EOS and Maxjet, by going into administration yesterday.

The spate of bankruptcies have essentailly freed up the lucrative long haul business travel market for BA to exploit less-hindered by competition.

End Of Line For Silverjet As Administrators Called In

Silverjet, the business class only airline, has ceased operations after running out of cash yesterday.

The airline suspended services after the final flight from Dubai arrived at London Luton Airport.

The CAA estimate upwards of 10,000 passengers have been stranded in New York and Dubai following the collapse.

British Airways, Virgin Atlantic and Emirates are understood to be offerring special deals for those affected.

Air Berlin To Cut Routes As Fuel Crisis Deepens

Air Berlin, Europe's third largest budget airline is to cut several routes from its network in response to the growing fuel crisis.

The German airline has also abandoned its full year profit forcast claiming that profits will be "adversely affected" by spending on fuel.

Airlines Breath Easy As Oil Prices Actually Drop - For Now At Least

Airlines breathed a sigh of relief today with the news that the price of oil has actually dropped.

Oil prices fell by more than $4 today after the dollar itself increased in value. Oil prices reached an all time high last Thursday reaching $135 a barrell.

But analysts warned the drop in oil prices may be just a blip and thanks to unrest in oil producing regions of Nigeria prices were likely to be rising again very soon.

Meanwhile UK Prime Minister Gordon Brown has pledged to tackle OPEC and demand that the cartel increases oil production.

With Gordons track record - looks like we're doomed to see further rises.

Watch this space.

Thomsonfly Has Wrists Slapped By ASA Over Legroom Ads

Thomsonfly has been warned by the Advertising Standards Authority not to repeat adverts that claimed the airline offered more legroom in long haul economy than both Virgin and British Airways.

The adverts showed a cartoon of a man reclining in his airline seat and stretching his his legs out.

The ASA backed four claims that the adverts exaggerated the available legroom and ordered the airline to remove the campaign.

Thomsonfly deny the adverts were misleading.

Jet2 Offer Premium Service - Its Not So Grim Up North Anymore

Leeds-based budget carrier Jet2 have launched a premium service designed to ease the stresses and strains of travel.

The £24.99 service will be available on all European flights departing from the UK with a flight time of more than two hours.

Premium customers will enjoy priority check-in, fast track security clearance, access to airport lounges and an inflight meal and drink.

A simimlar service will also be available on the airlines recently announced New York service from Leeds-Bradford. The Jet2PlusUSA service will cost £99 and offer passangers extra leg room and additional baggage allowance on the return leg of the journey.

Could Aer Lingus Be Facing Bankruptcy?

Fresh on the heals of Ryanair boss Micheal O'leary's claim that German budget carrier Air Berlin could go bust if oil prices continued to rise, the outspoken Irishman has stated that Aer Lingus could be heading the same way.

According to reports O'leary has warned that Aer Lingus would face certain bankruptcy if oil prices were to hit $200 per barrel. Oil prices reached new highs last week topping the $135 mark.

Analysts have warned oil could reach the $200 point within the next two years crippling the airline industry.

If this happens O'leary stated that only the strong airlines of Europe would survive, naming British Airways, Air France, Lufthansa and his own Ryanair as the likely carriers to withstand the fuel crisis.

With this said does this mean O'leary believes the likes of easyJet and Jet2 could also be facing bankruptcy?

easyJet Boss Puts Money Where Stelios' Mouth Is

easyJet's chief executive Andrew Harrison has perhaps demonstrated his confidence in the budget airline's ability to ride the current turbulence caused by soaring oil prices by investing £0.5million of his own cash in the company's shares.

Harrison now owns 682,523 shares in easyJet, a stake of around 0.16%.

Harrison reported that despite pre-tax losses widening to £57.5m for the six months ended 31 March 2008, Summer seat sales showed no sign of any economic slowdown.

Harrison also confidently predicted that any economic downturn would help easyJet gain market share from rivals carriers.

Jet2 Announce Winter Sun Deals From Leeds

Jet2.com has announced that four fantastic Sun destinations for Winter '08 go on sale today.

Jet2.com will be flying out to Alicante, Faro, Malaga and Murcia from Leeds and with fares starting at just £35.99 one way inc. taxes.

According to the low cost carrier, these hot destinations offer everything for the perfect holiday from golden beaches, exciting watersports, stunning scenery and plenty of sightseeing opportunities with ancient ruins and cultural hotspots, not to mention buzzing nightlife!

Ryanair Announce New Route from London to Zweibrücken

Ryanair have announced a new route from London Stansted to Zweibrücken, Germany's "city of roses and horses", which will start on October 28.

Announcing the new route, Ryanair's Bridget Dowling said: "Ryanair now serves 103 routes from London Stansted with the guaranteed lowest fares, and this new route to Zweibrucken will connect London and Western Germany from just £26 one way. 

"Zweibrucken boasts one of Germany's biggest stud farms, and horse enthusiasts can enjoy stallion parades followed by a trip down the 'Rosenweg' rose-filled promenade.
"So we advise all budding horticulturalists, horse enthusiasts and bargain hunters to book immediately as demand for the guaranteed lowest fares to Zweibrucken will be very strong."