Airlines must consolidate fast or die : Swiss Int'l chief

business-times.asia1.com.sg :

The head of Swiss carrier Swiss International Air Lines, which is being bought by Germany's Lufthansa, warned other airlines to act fast on consolidation or they may not survive. Christoph Franz told reporters on the sidelines of the World Economic Forum in Davos, Switzerland, that he expected more consolidation in the sector.

The sector has come under significant pressure to cut costs due to the slump in air traffic immediately after the September 11, 2001 terrorist attacks in the United States, the rise of budget airlines and the soaring price of oil. Mr Franz said that with surcharges on tickets, airlines had already passed on some of the rise in fuel prices to customers, but if oil spiked to US$100 per barrel, as feared, some airlines would not survive.

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