BA cashes in on fares row

THE Italian government's threat to fine British Airways unless it raises its fares has backfired in spectacular fashion.

Italians have been snapping up BA's cheaper tickets since their government demanded that BA increased fares on competitive routes to the same level as Alitalia, the State-owned airline.

For example, Alitalia charges £333 to fly direct from Rome to New York, while BA charges £216 from Rome to New York via London.

A BA spokesman said: 'The threat by the Italians seems to have backfired. All the Italians seemed to be delighted at hearing about our cheaper fares.

'Ticket sales are well up on their normal levels at this time of the year. It seems that the more they hear about our competitive prices, the more Italian passengers flock to BA.'

In the past eight months, the Italians have sent four legal letters to BA instructing them to raise prices. BA has not only ignored the legal threat, but has appealed to the European Commission to intervene.

The Commission is now investigating the action of the Italian government and has hinted that the legal threats are anti-competitive.

Alitalia is struggling against bankruptcy and only a few months ago was given a £268m emergency loan to keep it going.