There could be more casualties in the airline industry because of spiralling costs, Sir Richard Branson has warned.
The Virgin Atlantic boss said fuel rises would mean some smaller companies would either be forced to merge or go under.
He also predicted the cost of oil, now at $125 a barrel, would go up to $200 a barrel by 2010.
Sir Richard was speaking during a trip to Kenya to promote the country's tourist industry.
He said: "There will be consolidation, either by failure of airlines or by merger of airlines.
"Our fuel bill has gone up from £250 million about three years ago to about a £1bn this year - that's a lot of money.
"We have absorbed some of that cost as a company, but we have had to pass on quite a lot of that cost."
But he was optimistic about the UK and world economy, saying the impact of the global financial crisis had so far been limited.
He said: "We have not found less people using our trains, planes or mobile phones. It seems to be a crisis mainly affecting banking."
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