Europe's biggest airline, British Airways Plc, is to slash fares on a third of European routes in a move to copy the winning formula of no-frills discount airlines EasyJet and Ryanair.
Britain's flag carrier has been losing customers to cheaper rivals and suffered a heavy blow when transatlantic passenger numbers fell sharply after September 11th.
Last month it reported its worst full-year loss since privatisation 15 years ago.
The company said it would cut fares by up to 80 per cent on 42 of its 126 routes from Britain to continental Europe, mostly to France and Italy, from Thursday.
British Airways will adopt some of the methods championed by no-frills operators, encouraging online booking and scrapping requirements for a Saturday night stay to get its lowest fares, but is also maintaining services not offered by budget airlines, such as choice of seats and free food and drink.
Under the new pricing system, a midweek return flight to Paris will now cost from £69 sterling, instead of £298.
Customers will also be able to combine peak and off-peak fares.