Low-price business travel 'in trouble'
26 January 2009 10:22
Cut-price business flights are in jeopardy, after further problems were reported within the business class travel sector with market leader Eos filing for bankruptcy.
Business flights took off as a service to fill the rise in business-class travel between Europe and the US in 2005, but all four airlines which provided the service have failed to show any profit.
With market competitor Maxijet collapsing last December, Silverjet seeking new investment and L'Avion apparently struggling, it appears that all airlines will be in for a tough few years.
Increases in operating costs and the negativity of the economic environment are cited as possible reasons for the turmoil.
James Fremantle of the Air Transport Users Council has said that he believes that the price of oil is the number one problem affecting the industry and this problem may cause a reduction in airfare as airlines look to fill their planes.
He added that the economic problems will be currently taking their toll on businesses meaning that they have less money available to spend on travel.
Whether you are travelling on a business flight or with an ordinary airline it is crucial that you ensure you have taken out the correct travel insurance for your journey.