Post by Graham - Bosmere on Jun 10, 2004 16:03:48 GMT 1
According to The Independent newspaper, the Luton-based carrier Now, which was launched last year by tax-free shopping executive Lars Weilender and former Virgin Atlantic pilot Nick Grimwood, became the latest in an increasingly long line of budget carriers to fail.
The carrier reportedly blames its failure on the fact that £10 million of promised funding, from a group of wealthy Luxembourg investors, has failed to materialise.
The newspaper lists Duo, Air Planet, SkyNet, Jet-Green and JetMagic as other no-frills carriers that have failed recently, apparently backing up Ryanair boss Michael O’Leary’s prediction that European carriers will face a “bloodbath” this year because of increasing pressure to lower fares.
I just wonder what the result of a 'bloodbath' will be. Higher and realistic fares but to more destinations, or more failures of state and low cost airlines?
One has to ask the question how much car parking charges at Luton and Stansted subsidise the low cost carriers low landing fees.
The carrier reportedly blames its failure on the fact that £10 million of promised funding, from a group of wealthy Luxembourg investors, has failed to materialise.
The newspaper lists Duo, Air Planet, SkyNet, Jet-Green and JetMagic as other no-frills carriers that have failed recently, apparently backing up Ryanair boss Michael O’Leary’s prediction that European carriers will face a “bloodbath” this year because of increasing pressure to lower fares.
I just wonder what the result of a 'bloodbath' will be. Higher and realistic fares but to more destinations, or more failures of state and low cost airlines?
One has to ask the question how much car parking charges at Luton and Stansted subsidise the low cost carriers low landing fees.