Airline analysts fear effects of attacks

Budget airlines, domestic and European carriers could be badly

damaged by the aftermath of the terrorist attacks, in addition to their

larger transatlantic counterparts.

Increases in insurance costs, the price of fuel, and heightened security

passed on in landing charges and other fees would all take their toll,

warned analysts this week.

For budget carriers such as easyJet, Go and Buzz, the impact of tighter

security measures could also prove costly. "Their business models work

on high turnaround, so any impact on check-in times may have an

effect,"said Roger Tejwani, a transport analyst at WestLB Panmure.

The airline industry is bracing itself for bankruptcies and a wave of

consolidation. Virgin Atlantic announced cuts of 1200 and British

Airways, which was already looking to shed 2800 staff, froze recruitment

and discretionary spending.

The International Association of Travel Agents has predicted the

industry will lose £6.8bn in the next few weeks. Few airlines yet

have plans to resume advertising. The British travel industry is also

scaling back plans to promote itself in the US.

This article was first published on Marketing