Price war predicted after Virgin deal

Industry commentators are predicting a price war on routes from London to New York and Sydney after Virgin Atlantic came a step closer to launching a service between Hong Kong and Sydney. The announcement comes after an agreement between the UK and Hong Kong governments, which will see Cathay Pacific start to operate a route between London and New York. David Soskin, chief executive of the online seller Cheapflights, told the Daily Express that the announcement could only be good news for travellers. He reportedly told the newspaper: “Although Cathay is not known for competing on price, having a third non-US carrier on the New York route will inevitably have some impact on ticket prices. Similarly, Virgin has never competed just on price but having another major carrier on the Sydney route will have an effect on pricing.” He added: “Both companies have a very strong service culture and that will probably have a knock-on effect on their competitors. As far as the travelling public is concerned, the more competition the better.” Virgin told News From Abroad that it is planning to start a daily service to Sydney, with a two-hour stopover in Hong Kong. The carrier will use Airbus A340s when the service gets off the ground next summer, but is planning to use the much-vaunted Airbus A380 “superjumbo” as from 2006.