Airlines tight-lipped over fare cuts
Airlines serving Bermuda warned yesterday that unless the public starts flying again soon, the problems of low load factors besetting the industry will drag on into next Spring.
But at a press briefing yesterday, almost all the airlines side-stepped answering whether they are considering lowering fares to tempt passengers back into the air.
Carol DeCouto, the chair of the Bermuda Board of Airlines, representing all the carriers serving the Island, welcomed the Government announcement on Tuesday that all fees for September and October will be deferred until January and office rental for the airlines at the airport for those months will be waived. The concessions are worth around $1 million.
"Our industry is facing a very difficult situation over the next six months. Government and airport authorities around the world, realising the seriousness of the challenge we face, have moved quickly to offer a range of concessions," said Ms DeCouto of American Airlines.
"We have been offered relief, initially for a two-month period, and for this we are very grateful. However, unless our customers start flying again, the downturn is likely to be much longer than this - so we are optimistic that continuing dialogue with the Ministry of Transport will afford us further relief if it proves to be warranted.
Addressing Transport Minister Dr. Ewart Brown, she added: "We, as the local representatives of the industry, are impressed with the swift and incisive way in which you have approached this issue."
Dr. Brown said on Tuesday that he hoped the airlines would "seriously consider" reducing their fares.
At the briefing yesterday, he said some airlines were cutting business travel fares by up to 50 percent and others were looking at cutting fares on coach class.
American, Continental and Delta, which all serve the Island, have announced discounts on business fares, but it is not known if they apply to Bermuda.
Representatives of all the airlines serving Bermuda were asked at the press briefing if they are considering lowering their fares, but only American admitted they are looking into this.
Dr. Brown said: "I speculated that the carriers would reduce their fares, not based on any inside information, just on the assumption that to get people back on the planes, there needs to be an aggressive campaign. Historically, fares have fallen, and that's why I think it will happen."
When the airlines were asked if they were considering cutting flights to Bermuda, only Jackie Zuill of Delta answered, and said: "As of today, no".
But Dr. Brown added: "The Ministry has not received word from any carriers that any flights have been cut (except US Airways to Baltimore)."
Echoing the call for people to begin flying again for business and pleasure, Dr.Brown said: "With the ongoing safety measures, Bermuda is a safe place to conduct business and enjoy a vacation. It is also a short travel distance from the US."
He added: "We greatly appreciate the commitment of the airlines to continuing the operation of the current schedules.
"I asked airlines to seriously consider reducing fares to Bermuda and I am pleased to say that several carriers are reducing business travel by up to 50 percent and others are looking at coach fares.
"I am confident that with low and attractive air fares, more people will fly to Bermuda."
Tourism Minister David Allen was in London yesterday talking to British Airways (BA) about the possibility of increasing airlift to Bermuda.
Tourism is hoping to generate more business out of the UK and Europe, where air travel is holding up better than in the US.
But when asked yesterday if BA would provide more airlift if the business was there, the airline's Bermuda manager Philip Troake said: "It would have to be a compelling case."
