Charter operators: friend or foe?

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Charter operators: friend or foe?
Express 04.27.03

In pleading his case for an US$18.5 million state bail out, BWIA's
President and CEO Conrad Aleong accused charter operators of dumping excess
capacity on BWIA's home turf and cutting deep into the airline's dwindling
revenue streams. In his claim for state compensation, he calculated that
this would cost BWIA well over US$4.7 million for the six months ending
June 31 this year. He estimated that the open charter on BWIA is costing
the airline some US$788,000 a month in lost revenues. But it turns out that
BWIA has been subsidising some of the same charter operators it has accused
of stealing market share. In his case for compensation against charter
operators, Aleong identified Constellation Travel among the so-called list
of charter offenders who should have their wings clipped. But BWIA,
according to industry insiders, has sold seat blocks to the same
Constellation Tours at a vastly subsidised rate of $1,695. BWIA is selling
the same seats on the same aircraft, its Boeing 737s, at $2,672 to New
York. BWIA customers are in effect paying BWIA more than Constellation's
charter customers to fly the same BWIA service to New York

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