BA 3301 Lecture Notes - Lecture 58: Virgin Atlantic, Fiscal Policy, Google Images
Document Summary
In addition, the increase in the price of oil and fuel in 2008 led to large losses both british airways (ba) and its biggest competitor virgin atlantic (vaa), which had a loss of 401 million in 2009 (the. Also, in result of recession has reduced the number of business travels, and lower incomes has forced all the airlines as much as possible reduce prices for their services. In this difficult situation, the uk"s expansionary fiscal policy has helped both companies to avoid the total losses and possible bankruptcy. The result of expansionary policy is a decrease of taxes that increases consumer spending and demand, and thus increases the supply. This was a good opportunity for the business growth and revenue recovery of both ba and vaa, since it means that more customers can use the airlines" services. Reduction of the basic taxes would increase the income of the population, which will increase the demand for holidays, including families with children.
