Virgin Atlantic to cut business class fares

Virgin Atlantic is set to make the next move in its price war with rival British Airways by announcing a reduction in its fares for business class flights.

The airline is expected to announce reductions of up to 40 per cent on its upper class services as it attempts to retain its premium passengers during the economic downturn.

Business class flights to New York will be cut by 40 per cent to £1,099 for a return connection, while services to Boston will be priced at £1,199 – a reduction of 38 per cent.

According to Reuters, British Airways has said in the past that it is against reduced-price business class fares, but the airline is expected to follow its rival's lead to avoid losing market share.

Price cuts could provide a welcome boost to the business class side of British Airways' operations, with recent figures showing that the airline saw a 12.1 per cent fall in premium traffic in December 2008.

Both British Airways and Virgin Atlantic began offering their customers cheaper fares last month when they reduced their fuel surcharges.

Posted by Teddie, 09 January 2009 11:02

News tags

• New York
• Boston
• Virgin
• British Airways