CAA warns of austerity

The UK’s Civil Aviation Authority (CAA) has published new research showing that companies that ushered their staff members into economy seats or onto budget airlines during the economic crisis, especially on short-haul flights, will not necessarily put their staff back into business class as the world’s economy recovers.
Harry Bush, the CAA’s group director of economic regulation, said: “The recession significantly reduced the amount of UK business travel, but also changed its nature. It accentuated the trend away from short-haul business class to economy and no-frills. Businesses economised across the board.”
The CAA’s research predicts that as growth returns to the financial markets, business travel will revive, but it remains an ‘open question’ as to how far austerity measures put in place by companies will permanently affect how companies allow their employees to travel. Certain elements of cost control – such as accepting restrictions on ticket flexibility and taking fare prices into account when planning itineraries – look set to continue, according to the report.
Budget airlines have taken advantage of the shift of business travellers, with one of the first steps taken by easyJet’s new chief executive Carolyn McCall in December last year, when a new, fully flexible ticket was launched that would be cheaper than normal British Airways prices, but more expensive than normal budget airline rates.