VIRGIN EXPRESS has been forced to postpone "until further notice" its new scheduled service to Geneva, following the Swiss authorities' objections to the company's low-fare policy. The Brussels-based carrier was to have begun services on 2 September.

The proposed Virgin Express aimed to set fares at around half of the levels now charged on the route by Swissair and its Belgian partner Sabena. The Swiss authorities, which already had a run-in with British Midland over fare levels last year, appeared to be attaching conditions to the use and level of the Virgin fare.

The airline had originally proposed a one-way fare of SFr115 ($97) from Brussels to Geneva, but the Swiss wanted a return fare of SFr275 with limits on its use.

Switzerland, which is not part of the European Union, had also claimed that, since Virgin Express is owned by Richard Branson's UK-based Virgin group, it could only fly the Brussels-Geneva service as an extension of a route originating in the UK. Despite the setbacks, the airline says that it has no intention of giving up its Geneva plans. The airline is also understood to be investigating starting services to the UK.

Source: Flight International