Saturday, August 11, 2007

The Cycle Turning Down

According the Financial Times this morning budget airlines face a crackdown in Britain over their potentially misleading advertising. Competition watchdogs want to stop them advertising flights for pennies when the true cost is many pounds. The Office of Fair Trading has ordered 13 airlines - including Ryanair, AerLingus and easyJet -to change their advertisements and website prices to include fixed, non-optional costs, such as taxes.

All this bodes badly for the coming winter season for the low-cost carriers. The need to make air travel appear to be inexpensive has never been greater with ballooning capacity and tightening consumer belts. The cycle is turning down.

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