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Airlines cut flights as war looms
LONDON, England (CNN) -- Several global airlines began cutting flights on Tuesday ahead of an impending U.S.-led war on Iraq. British Airways, Europe's biggest airline, said it was canceling flights from Tel Aviv, Israel, from Wednesday until further notice. The last flight from Kuwait, where 250,000 U.S. and British troops are based ready for the push to Baghdad, is expected to land in London Wednesday at 0620 GMT. BA's Karen Franklin told CNN that the move was in response to the British Foreign Office advice to the general public to avoid travel in the area. "Our passenger numbers released last month showed passenger numbers on routes to the U.S. and Asia had fallen because of the state of the global economy and possibility of war, but numbers to the Middle East had risen slightly", she said. "We'll be holding daily review meetings and react to events but we have a number of contingencies." As for the possible financial impact the airline has already instituted measures to save £450 million in costs and have "£2 billion in cash reserves that we can be used in the event of war, " she added. European, Asian and U.S. airline stocks have risen sharply over the last 24 hours as crude oil prices slumped -- lowering the cost of fuel. Brent crude for May delivery fell $2.03 to $27.45 a barrel in midday trading on Tuesday. British Airways soared 11.2 percent in midday London trading, Europe's second-largest airline Air France climbed 3.1 percent, German rival Deutsche Lufthansa gained 5.6 percent. Korean Air's stock gained 9 percent and Qantas rose 4 percent. Singapore Airlines Ltd, Asia's most profitable airline, rose 3.13 percent. But sources at one of Europe's largest airlines told CNN that costs could rise and services be disrupted if Russian President Vladimir Putin, who is against the war, closes his airspace. And if there is a terror attack in Britain, prompting authorities to close British airspace, virtually no flights would be possible. The troubled airline industry is praying for a short war as the sector has witnessed a decline in passenger numbers and is struggling to recover from the September 11 terror attacks in the U.S. During and after the first Gulf War passenger number slumped by a fifth. This time passenger numbers may decline but disruption to services could be limited as few international flights cross Iraq and airlines use alternative routes developed since the Gulf War in 1991. Other developments: • Korean Air, the country's biggest airline, plans to halt flights on 29 routes to Europe and the U.S. • Qantas, Australia's flagship carrier, said it would cut the equivalent of 1,000 jobs by forcing staff to take leave as it trims expenses ahead of the possible conflict. • Thai Airways International plans to suspend flights to Kuwait and Bahrain from March 20. • Air France, Lufthansa and Swiss Air said they had no immediate plans to cancel flights. • Dutch carrier KLM said it had changed its Kuwait schedule from a night flight to a day flight. "We are very well prepared with a specialized team looking into all scenarios, but we cannot see what kind of impact the war will have until it starts," a spokesperson said.
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