BA fares war: Rivals declare it a 'gimmick'

BritishAirways' no-frills rivals this week dismissed the airline's attempt to launch a fares war on European routes as a "gimmick and a scam" - saying BA could never compete on price until it was genuinely low cost.

BA said that as part of a radical shake-up of its short-haul network, fares to more than 65 domestic and European destinations would be cut by up to 50 per cent, with the price of one-way tickets starting at £29 ($82).

But Ryanair, Europe's largest budget carrier, urged BA to be "more honest and transparent" with pricing. Michael Cawley, deputy chief executive of the Irish carrier, said: "Ryanair's fares are still only a fraction of BA's, even with their so-called fare shake-up."

EasyJet claimed that return fares on BA would in many cases be no cheaper than before because the airline previously charged passengers extra for flying one-way.

The airline challenged BA to say what its average fare would be now, saying easyJet's was £42 one-way.

A spokeswoman said: "Over the years, BA has threatened to cut its fares to compete with low-cost airlines several times, but low fares are not sustainable without a low cost base."

Despite the criticisms, Martin George, BA's commercial director, insisted: "This is not a short-term gimmick but a long-term commitment to our millions of customers."

He said BA would offer seven million seats a year - about a fifth of the total on its short-haul network - at reduced prices, with a million priced at the lowest rate.

Examples include £29 one-way from London to Manchester. However, the lowest price available on the BA website yesterday for that trip was £156.

BA said it expected the new fares to be "revenue-positive" because it would fill more seats, albeit at lower prices.

At present, its short-haul domestic and European flights operate 70 per cent full.

- INDEPENDENT