Monday August 14, 2006

Airlines to cut Heathrow flights amid security row

news.yahoo.com :

Airlines will cut 20% of flights departing London's Heathrow Airport on Monday following a directive by the airport's owner amid a growing dispute over how to handle tougher security measures. The directive followed a 30% reduction in flights on Sunday as airlines struggle with tight security at British airports following what police said was a foiled plot to blow up transatlantic airliners. BAA threatened to deny airlines the use of airport facilities if they did not comply.

British Airways said it was complying with the directive and expected to cut 20% of its flights from Heathrow on Monday. British low-cost carrier easyJet said it expected to cancel about 30 flights. Ryanair, Europe's largest low-cost airline, earlier called on Britain to revise what it called "heavy handed" airport security measures and said London's airports were on the brink of collapse.

- Looks like a form of demand destruction from a peakoiler point of view.

(2006-08-14 19:54:35 SGT) [Biz] Permalink

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