More Lows For the Travel Industry

A prediction from experts that the financial crisis may worsen during 2009 has led the UK economy fighting to beat recession as its industries struggle to keep up.
The motor industry has already shown signs that sales are plummeting after the introduction of the supermarket style 'by one get one free' offers on the Dodge Avenger SXT 2.
4i as well as the 'buy one car and get a scooter free' deal went into action by a desperate dealer trying to encourage sales.
Meanwhile, the falling of house prices reveals that the housing market too has plummeted due to the difficulties in securing a mortgage.
Predictions that next year's prices may be at its record low reflects that the forecast for the UK's mortgage market is expected to grow deeper in 2009.
The travel industry is too expected to fall deeper as fewer people are going on holiday despite recent news revealing that Brits are still planning to go abroad this Christmas regardless of the current crisis.
In the past few months alone we have witnessed many small airline industries go bust as a result of the downturn of the UK economy.
And what's more, according to Willie Walsh, chief executive of airline, British Airways, the situation is more likely to deepen during the next two years.
"Depressing" news for British Airways The past six months have been depressing for airline, British Airways as it witnesses the decline in sales as a result of the economic climate.
Following the UK flag carrier's announcement that interim pre-tax profits had fallen 92 per cent to £52m, Mr Walsh said that it was a disappointing time for the airline industry.
He said that during 30 years in the airline industry, the last six months has been the most depressing.
In a speech to the London Chamber of Commerce, Walsh said: "This industry is in crisis -- a deeper, more protracted, more fundamental crisis than 9/11, the Gulf War or any of the previous shocks that have beset the industry since the age of mass air transport began in the 1970s.
" Within the next two years, the situation is predicted to deepen.
Walsh announced that the group will reduce routes and capacity as a bid to beat the crisis.
On the positive side however, predictions that British Airways would be in the 'red' were proved wrong as the airlines shares rose by 11.
9 per cent to 146p.
Walsh said: "Against last year clearly it is a very disappointing result...
but compared to a backdrop of a worsening economic situation, a drop in consumer confidence and of course the volatile price of oil, I think the numbers are good.
" More carriers to go bust in 2009 According to Walsh, BA is less confident for this year's figures along with many other airlines and expects many airlines to go bust as a result of the worsening downturn of the economic climate.
He said: "We are able to say that we expect to be profitable this year, and that puts us in a relatively good position (against other airlines).
" Marketing and operations director, Jeff Rhys-Jones of TripVision said: "I don't think the travel industry as a whole is going to be a loser.
While there will be more company failures, the really savvy ones will be putting forward products to consumers that they want to buy.
"