British Airways today announced that it was lowering ticket prices following a dramatic fall in demand for flights in recent weeks. The cost of a ticket on flights between Tel Aviv and London will fall 9%, while long haul flights from Tel Aviv via London will drop 13%.
In addition, the airline is offering overnight stays in hotels at Heathrow Airport for most long distance flights that are not scheduled to take off until the following day.
In recent months many forecasts have been published claiming that the global economic crisis will result in a substantial fall in demand at airlines in both the business and tourist markets. However, apart from British Airways, no other company flying to and from Israel has yet reported a drop in demand.
According to industry sources, despite the substantial fall in airline ticket prices in recent weeks, mainly due to the drop in the cost of fuel and fuel levies, the airlines have no choice but to offer significant sales promotions.
Published by Globes [online], Israel business news - www.globes-online.com - on January 13, 2009
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