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economy

Swedish Airlines Face Economic Woes

Published lördag 19 juni 2010 kl 11.13

Sweden's domestic airlines could face major economic problems following a tough Spring, reports Swedish Radio news.

A combination of the effects of ash clouds, recession and, most recently, personnel strikes, means that the airlines have seen incomes fall rapidly during the first half of 2010.

Jan-Olov Bergling told Swedish Radio that Sweden can expect to have fewer airlines after the summer:

"It's not unthinkable, the situation is pretty serious for many of the airlines. We have already seen two routes close during the spring."

The strikes and the ash cloud, meaning grounded flights, couldn't have come at a worse time, according to Bergling:

"This is the time of year when we should be making money. It's a profitable time of the year, when the companies should be saving money in order to pay staff wages in July, August and September. Bookings don't tend to pick up again after the summer until the middle of September.", he says.

Our journalism is based on credibility and impartiality. Swedish Radio is independent and not affiliated to any political, religious, financial, public or private interests.
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