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Wednesday, 12 June, 2002, 15:41 GMT 16:41 UK
BA to cut European fares
BA tailfins
BA recently announced record losses
British Airways is to lower many of its European fares as it bids to win business back from no-frills carriers.

BA's European shorthaul has been hit hard by competition from low cost airlines such as Ryanair and Easyjet - as well as the post-11 September slump in passenger numbers.

The price cuts, due to be made on 10-12 Continental routes later this month, are part of a restructuring of the airline's European operations in a bid to reverse the downturn.

Chief executive Rod Eddington said BA needed to ensure its online ticket system could meet expected passenger demand, and said that the airline would use smaller planes and increased flight frequencies.

Record losses

Mr Eddington said it would also need to cut aircraft turnaround times at airports to match the low-cost carriers' strategy.

"What we have to get right is distribution, frequency and turnaround time," he said.

"It is about shorthaul profitability."

British Airways reported a loss of 200m last month - its worst loss since it was privatised 15 years ago.

In contrast, Ryanair announce record profits earlier this week, while Easyjet recently expanded its operation by buying rival Go for 374m.

In the City, British Airways shares closed down 7p at 199.5p on Wednesday, amid a general stock decline.

See also:

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