We have seen a dramatic fall in oil prices since July 2008 where the Dollar price per barrel was $147 and today the figure is just under $78!

However, as Virgin Atlantic announces that it is to reduce its fuel surcharges on flights for most passengers in response to a fall in the price of oil, we can see that these reductions are in no way as bigger a percentage as the fall in the price per barrel.

Virgin’s surcharges for its economy passengers shorter-hall routes will be cut by £10 to £68 from £78 (12.8% cut) and on their long-haul routes economy charges will drop from £109 to £96, which represents a fall of 11.9%.

This is by no means the fault of Virgin, as they are more than likely being charged by the oil companies for their fuel at a still comparatively high rate, despite the fall of nearly 47% on the price of crude. This is also the case at the pumps across the UK, which have seen a fall in recent weeks, but not to the same extent as crude oil prices – even Gordon Brown has called for a cut in petol prices.

Gatwick Airport is to be put up for sale by its owner BAA, says BBC Transport Correspondent Tom Symonds.

The move comes four weeks after competition watchdogs said BAA may have to sell three of its UK airports.

Several firms are said to be interested in the UK’s second biggest airport – last week Virgin said it was interested in being part of a buying consortium.

Other potential bidders for Gatwick, valued at £1.8bn by regulators, are said to include MacQuarie and Fraport.

Shake-up

Last week, Virgin Atlantic – half owned by Sir Richard Branson – told the Daily Telegraph it would be interested in being part of a consortium to buy Gatwick Airport.

Its comments came two weeks after the Competition Commission said in an interim ruling that BAA may have to sell three of its UK airports.

Although the Commission does not release its full report until next year, it added that BAA may need to sell two of its three London airports.

BAA ruled out selling Heathrow, which leaves Gatwick and Stansted.

The Civil Aviation Authority has just increased the amount Gatwick – where 35 million passengers passed through in 2007 – can charge in landing fees.

But it is operating on one runway and approaching full capacity.

Our correspondent says it is likely to take months to find a buyer and negotiate the deal.

News reported by The BBC

Baggage handlers and check-in staff at Gatwick and Stansted airports are to strike on Bank Holiday Monday in a row over pay, unions say.

At Gatwick, 318 Swissport workers will walk out for 24 hours, halting services at some airlines. A second strike is planned for Friday 29 August.

The staff have rejected a 3% pay offer which the Unite union said was “an insult” and well below inflation.

Workers from two unions at Stansted have also voted to strike.

Unite said industrial action could spread to other airports in the coming weeks.

Workers at Manchester Airport will put the decision to a vote on Monday, and further ballots are expected later at Birmingham and Newcastle airports.

Unite members working for Swissport at Stansted will be joined by 30 members of the GMB union when they walk out on Monday 25 August and Friday 29.

The GMB members, who work for Airfield Services screening baggage for Ryanair and easyJet, have rejected a 1.5% pay offer.

Cost of living

Unite has more than 300 members at Gatwick, 72% of whom voted in favour of striking. They want to see a pay increase of more than 5%. This pay offer is an insult to professional, hard working men and women

Steve Turner, Unite

Airlines including Virgin Atlantic, Monarch, Thomson Fly and First Choice would be affected if the action later this month went ahead.

National officer Steve Turner said: “Our members are already struggling to keep up with rising food and energy costs.

“This pay offer is an insult to professional, hard working men and women who have to operate in extremely difficult conditions.

“Our members have had enough. The liberalisation of ground handling services across UK airports has resulted in a race to the bottom which must and will stop.

“We will not stand back and allow labour costs to determine whether contracts are won or lost.”

‘Minimise disruption’

Swissport said it was aware that a “small number” of its staff were planning to strike.

A spokesman said: “Swissport believes that a fair offer has been made to the unions in the light of the current economic climate that reflects the cost of living increase.

“Swissport is working with the airport operator and the customer airlines to minimise disruption to the travelling public.”

Gary Pearce, from the GMB, said the Stansted workers were due a pay rise last January but their employers had been “dragging their feet”.

“These workers are doing one of the most vital jobs in the airport but are among the lowest paid,” he said.

In January, planned strikes at Gatwick and six other airports were called off after BAA eased plans to alter workers’ pension rights.

News reported by The BBC