23 March, 2007 |

Transatlantic flights will become cheaper

The European Union and the USA have agreed upon free transatlantic area. It can lead to toughening of a competition and decrease in quotations. The American companies can transport more Europeans, and European companies will receive freedom of a choice: they can take off from any city of the European Union and land at all airports of the USA and on the contrary.
Air flights between Old and New World make about 60 percent of the international traffic. About 50 million passengers cross Atlantic annually. Due to the new contract their quantity may increase in one and a half time within the nearest 5 years.
Meanwhile, analysts quote that the air agreement between the European Union and the USA can lead to toughening of a competition and reduction of prices of the European and American airlines. The “Standard and Poor’s” airlines’ analysts consider that the new agreement will be reflected differently in airlines’ activity. According to their predictions the most advantageous position large European carriers will be occupied by Lufthansa and Air France companies. They have more opportunities to fly to the USA from different places. In loss there will be the greater part of English companies - British Airways and Virgin- may loose their market positions. In due course they will face with a serious competition from the European and American airlines.
Now, these are the passengers, who will be the unconditional winners on both parties of Atlantic. Rivalry will necessarily lead to reductions of prices for air tickets.

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