Economics 101 - Cut the price / cost - boost sales - increase total revenues

Danes can look forward to inexpensive travel as airline companies such as Swedish Flyme, Irish Ryanair and Hungarian Wizzair are planning to move flight routes from Sweden to Denmark.

The reason ? Air-passenger duty at Copenhagen airport was halved last year and has now been removed. Sweden meanwhile is imposing a new duty.

Flyme, Ryanair and Wizzair are therefore looking to move flights to Copenhagen.

Travellers out of Copenhagen Airport can look forward to cheaper flights, and more low cost package tours.

Corinna Lundbæk Pedersen, departmental manager at Copenhagen airport is quoted in the Copenhagen Post saying ...'Many companies are interested in flying from Copenhagen,' she told financial daily Børsen. 'We've had discussions with companies that previously didn't want to fly from Copenhagen because of the air passenger-duty. Air Berlin has already started flying from Copenhagen and I expect many companies will follow suit.'

In May, Air-Berlin, the third biggest European airline company, started three routes from Copenhagen.

Fritidsresor, a Swedish travel company, has announced that they will be moving their departures to Copenhagen. Other holiday operators are also moving their departures to Copenhagen Airport if the price for a ticket in Sweden increases by DKK 150 (EUR 20).

Low-cost airline companies are the main growth sector in travel - low-cost traffic has increased from 0 to 13 percent over the past five years. According to the first quarter of 2006, low-cost airlines have some 2 billion passengers each year.

Compare and contrast : British Airways last year imposed "fuel surcharges" that equalled their after tax profits.

See BBC story today how BA (with Virgin and AA) face fines up to 10% of turnover and Executive 5 years in the slammer for alleged colluding on fuel surcharges - and also cargo costs are being examined.

BA NO 2 sent home on "gardening leave" ....