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Virgin boss predicts hard times for airlines
02.06.09
The global recession will make this year the "worst in the history of aviation" for the airline industry, Sir Richard Branson warned today.
But it will be the best for passengers, as airfares have been pushed down to the levels they were at 20 years ago, the Virgin tycoon added.
Speaking in Tokyo today, at a press conference to mark Virgin Atlantic's 20th anniversary of flying to the Japanese capital, Sir Richard said: "It's not nice out there for any airline.
"This year is likely to be the worst year in the history of aviation for the airline industry. It goes through cycles, and you have to prepare for these cycles. You reap the harvest and you build up a nest egg for the bad years.
"Fortunately Virgin Atlantic is prepared to weather it. It will be a bad year for all airlines out there."
He added later: "For the travelling public it will be the best year in the history of aviation because the price of travelling anywhere in the world is about the same price as when we started in Japan 20 years ago. It is a fantastic time to travel.
"If people have got the cash, this is the year to go abroad and visit friends and relatives," Sir Richard added.
Sir Richard also revealed today he is to set up an independent "carbon war room" to look at climate change.
He said: "It is to look at every single idea, and every single way of tackling carbon and then to advise governments around the world of the most cost effective ways to tackle carbon."
Sir Richard added: "We should be on a war footing when it comes to global warming. We need to tackle carbon head on."
He said that all airline companies must back governments across the world when they meet in Copenhagen at the end of the year for a climate change summit.
Sir Richard is expected to unveil more details of his plans to tackle climate change later this month.
