Qantas and Virgin Atlantic have trumped British Airways by paying record sums for scarce take-off and landing slots at London's congested Heathrow airport, it emerged yesterday.
The Australian flag carrier, a BA partner, has paid £20m - up to twice the normal rate - for two pairs of daily slots, industry sources said. Virgin has paid a similar sum for four pairs.
"They've certainly paid top dollar, in fact a shedload of money," sources said of deals which are traditionally conducted in a grey market rather than by open auction.
The moves by Qantas and Virgin are seen as underlining a more optimistic future for sales and growth in an industry ravaged by falling passenger numbers and revenues.
The much prized slots belonged to FlyBE, the low-cost carrier once known as British European and owned by family trusts set up by the late Sir Jack Walker, former millionaire owner of Blackburn Rovers.
The loss-making airline, based in Exeter, reported increases of up to 70% in passengers flown last year from regional airports such as Southampton and Belfast, Birmingham and Bristol.
BA, which is expected to announce plans for a further £300m-plus cost-cutting programme next month, paid about £12m last autumn for a pair of Heathrow slots owned by United Airlines - and, earlier, a relatively modest £35m for eight Swiss International daily slots. It has 40% of the total.
Virgin said it planned to extend its services from Heathrow to the US, as well as to Africa and Asia.
