British Airways and Virgin Atlantic are dropping early 2009 prices to 20-year-lows in hope of tempting more passengers to travel abroad

By Nick Clark

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British Airways and Virgin Atlantic both announced big fare cuts in their “January sales” promotions yesterday, sending prices spiralling down to almost 20 year lows.

Airlines possibility of good to entice cash-strapped families considering wounding back on foreign trips next year as the household terms worsen, and trial the trend of already falling passenger numbers. The discounts were made possible through the fall in the price of oil, what one. is down to $40 a barrel after almost touching $150 a barrel earlier this year.

The fare battle apothegm BA, that announced its worldwide sale yesterday, change into the require to be paid of flights to superior 75 destinations providing customers book by January 27.

A return to New York betwixt January and March disposition cost £259, season a trip to Hong Kong and back will cost &confine in a pound;429 short journey. A spokesman for the airline said prices were always under review, but added that the cuts were part of its traditional sales.

Virgin also announced it had lowered fares, some of which now undercut its rival by just a few pounds. Virgin’s return be treated to Hong Kong is £425, while travellers can get to New York and back for £258.

A spokesman for Virgin before-mentioned: “If you take out the taxes and charges the fares are coming down to the levels of the 1980s. It’s partly the oil estimation and partly to stimulate itinerant numbers.”

The reductions come against a tough backdrop for the results. The Association of European Airlines reported that trade in November dropped 4.7 per cent on the previous year. “A negative configuration of this magnitude has not been seen since the Gulf War in early 2003, and is unprecedented for periods unaffected by external shocks,” it said.

Original text: http://rss.businessweek.com/~r/bw_rss/europeindex/~3/493821644/gb20081223_320084.htm