BA chief foresees more bankruptcies

British Airways' chief executive expects more failures and more mergers in the air industry this year as carriers face the challenges of soaring oil prices and a weak US economy, reports Reuters.

"I suspect that many airlines out there that struggled when fuel was less than $100 a barrel are not going to be able to take the required actions and we will see further failures," said Willie Walsh, speaking at an investor presentation in New York.

"Clearly, bankruptcy is an effective form of consolidation, as they (failed airlines) take their capacity out of the market," he said.

"The high oil price combined with the economic slowdown may well have made it an imperative for many (airlines) to consider consolidation," Walsh said. "We will see meaningful consolidation, sooner rather than later."