Aviation in Turmoil

Not since 9/11 has the aviation and travel industry come under such pressure with oil prices destroying margins and the credit crunch destroying confidence.

Whilst many airlines initially had a cushion if they had purchased their fuel forward at a fixed rate, prices have been steadily increasing for months and many airlines are now outside their fixed price period and subject to open market prices.

No airline can cover such increases and surcharges for existing bookings have inevitably been passed onto the customer with massive price hikes for new bookings.

All this comes on top of increased security which makes travelling abroad more and more of a chore with endless queuing the norm. It is,therefore, little wonder that the UK holiday market has seen a dramatic upsurge in bookings in preference to travelling abroad.

Long haul operators have seen a decline in bookings but it is, the budget airlines who have borne the brunt with travellers cutting back on short term stays. Nipping off to Prague, Dublin or Paris for the week end is now seen as an expense too far.

Budget airlines thrived in the good times but the credit crunch, rising mortgages,fuel and food prices and the fear of unemployment has reduced spending power and the impulse purchase. The airlines have already reacted by reducing destinations and the number of times a week or a day in some cases they travel to certain cities. Silverjet airlines is the first casualty and unless confidence returns quickly there maybe more to follow.

the author is the owner of Flypark http://www.flypark.co.uk who have been providing airport parking at all UK airports since 1989. Off airport car parks offer considerable savings and can cut the cost of parking by up to 50% and with more and more travellers opting for this option early booking is recommended to get the best price and avoid having to park on airport where prices are exorbitant.