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From bad to worse?

A bad few days for airlines and their workforces - not just the demise of Silverjet with the loss of 420 staff, but 2,000 job losses announced at Air Canada, 500 at Finnair and the airline redundancy total in the US close to 9,000.

Unfortunately, $140-a-barrel oil means it won't stop. The problems are spreading too - as is inevitable. Consider the following:

The cuts at Air Canada reflect the downturn in US demand, a fact European carriers will not escape.

Those at Finnair are among the first significant job losses in Europe and the carrier's explanation that demand for China is down significantly suggest even the world's biggest emerging market is not immune.

Easyjet's consultation with pilots and crew on closing its Dortmund base suggest the low-cost carriers' pan-European expansion may have reached its limits, at least for now. If that is true, what will EasyJet and Ryanair do with the extensive fleets they have on order

Charges for check-in bags are poised to become routine in the US, with American Airlines, United Airlines and US Airways all now imposing a $15 fee.

There, in a nutshell, are the prospects in store - job losses, route and airport closures, and ancillary fees to add to fare rises, fuel surcharges and frequency reductions

Will it be enough?

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This page contains a single entry from the blog posted on June 18, 2008 7:17 PM.

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