Michael Harrington, deputy chief executive of no-frills British operator Debonair, yesterday maintained the airline's war of words with British Airways during his visit to Asian Aerospace '98.
Days ago, chairman and chief executive Franco Mancassola slammed BA for "-abusing" its "immense financial power" by cross-subsidising its new low-cost, low-fare subsidiary GO.
Harrington, who is at Asian Aerospace for talks with both Airbus and Boeing over the purchase of ten aircraft to replace its current fleet of leased BAe 146s, goes further.
"I believe British Airways' strategy is a lot more sinister than it currently appears. Not only does it hit other low-cost operators, but it also opens the door to a wholesale change in the way that they do business in Europe.
"They have already reduced travel agents' commissions. The cloak of the direct sales technique of GO may well be hiding a longer term strategy to cut travel agents from their mainline operations.
"The stakes are much higher than they seem at present."
GO is BA's response to the likes of Ryan Air, Debonair and easyJet which have slashed prices on popular European routes.
In his earlier comments to an audience of European Commission chiefs, Mancassola had said: "We believe in competition, but to learn that British Airways is cross-subsidising this new low-cost airline by underwriting their aircraft acquisitions is clearly a signal that they are exercising their dominant position and immense financial power. This abuse is of great concern to us.
"Passengers may well be lured by the very low fares that GO promises.
"However they could find themselves paying much more in the end as that airline destroys the very competition that gave them this exciting market opportunity in the first place."
Harrington says Debonair will likely announce an order, either for ten Boeing 717s - making it the European launch customer - or ten AE31Xs, in the autumn.
Debonair is unique as a pan-European airline in the low cost market with hubs at London Luton, Barcelona, Munich and now Rome.
Source: Flight Daily News
