• According to BuisniessTravel.com

    British Airways claimed at the Guild of Travel Management Companies autumn conference in London on Monday that it is winning back passengers from domestic United Kingdom rail competitors owing to rising rail fares. Virgin Trains chief executive Tony Collins conceded at the same conference that fares are increasing because of rising demand and limited capacity, and warned capacity problems could deter business travelers.

    Virgin Trains competes for corporate business with BA primarily on London-Manchester and, to a lesser extent, on London-Glasgow. BA head of sales & marketing for the U.K. & Ireland Richard Tams told the conference: “Corporate clients are putting us back in their policy because the price of rail has become so expensive.” In response Collins said: “If there is not enough supply for the level of demand, prices tend to go up. Sixty percent of our fares are regulated by the government, so we only have 40 percent to flex around demand. We are running out of capacity. We will reach the point where rail travel will become unattractive unless we get more capacity over the next three to four years. There is standing room only some days.”

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