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More airlines 'to go bust in coming months'

More airlines 'to go bust in coming months'
An increasing number of travellers could find themselves relying on ferry travel as an alternative to flying in the near future as it has been predicted that more airlines will cease trading over the coming months.

The financial problems that have dogged British industry this year have already seen operators such as Zoom Airlines and the XL Leisure group go into liquidation and more airlines are expected to suffer the same fate.

Mike Ambrose, director general of the European Regions Airline Association (ERA), said that the largest airlines are the ones most likely to survive through difficult economic conditions.

"My real concern is that carriers with the deepest pockets will be the ones that survive," Mr Ambrose said.

"I know of three more carriers who I believe will be gone in the next six weeks. It is a serious situation."

Members of the ERA recently reported passenger growth of 3.7 per cent between January and June 2008. This is the lowest increase since 2001, when passenger numbers increased by only 3.4 per cent for the year.

In contrast to this, the ferry industry has seen something of a revival of late and the Passenger Shipping Association recently announced plans to invest more than £1 billion in the sector over the coming years.

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