Business class fares cut 40%
Virgin Atlantic today (January 9) sparked a possible transatlantic price war when it slashed its business class fares to New York by 40%.
The move comes in the week that arch rival BA revealed passenger figures in its premium class dropped by 12.1% in December compared with the same month in 2007.
Virgin said it was cutting its Upper Class seats by 40% to New York to £1,099 return and to Boston by 38% to £1,199 return.
There are also cuts on return flights to six other US destinations: Chicago (30%), Washington DC (28%), Miami (34%), Las Vegas (37%), San Francisco (32%) and Los Angeles (32%).
Virgin also announced cuts in Upper Class fares to 20 other cities. Among these are Delhi, Mumbai, Shanghai and Sydney as well as tourist destinations in the Caribbean.
The offer comes into force today (January 9) and ends on January 27. The new fares only apply on selected dates.
Virgin is the first transatlantic carrier to cut fares at business class level.
Airlines have cut transatlantic economy fares as demand in the economic slowdown has slumped but have kept the lucrative business class fares at the pre-slowdown levels.
Some analysts were predicting that BA and other transatlantic carriers may be forced to respond to Virgin's move.
Steve Ridgway, Virgin's ceo, said: "As a leading global airline, we have a responsibility to help pump-prime the economy.
"These lower Upper Class fares will enable small and medium-sized businesses in particular to do deals and meet contacts around the world and help get the global economy moving again."
www.virginatlantic.com www.ba.com