Urgent talks on fuel crisis sought

Joan Collins COACH companies in the Balearics want to renegotiate prices with the tour operators to offset the sharp rise in the cost of fuel. The President of the Balearic Coach Companies Association, Jaume Batlle, warned yesterday that these companies will need to renegotiate their prices due to the recent rises in the price of crude oil which he described as a “serious problem” as it is actually “very difficult” for them to renegotiate once a price has been given. However, he added that this will be necessary otherwise there is a danger that some of them will to go out of business. He also commented that some tourists who come to the islands look for alternatives to coach trips (these include shows, visits or dinners) which the tour operators and travel agents on the islands also offer. In addition, a lot of tourists choose to rent a car which works out cheaper for them. Batlle said that it will be necessary to reach an agreement with tour operators to ensure the survival of many of the coach companies whose profitability is already “very limited”. “We have to do as the airlines do, either increase prices or close”, he said. “We have to seek urgent solutions now”, said Batlle, who ruled out the possibility that this could bring about a new deal with the coach companies who offer coach transport services to the Balearic Government and councils because of the “dejection” felt on other occasions when they didn't get substancial increases. Elsewhere, the Balearic Government are sticking to their economic growth forecast for 2006, which is between 2.4 and 2.5 percent, in spite of the increase in the price of a barrel of crude oil which, in the last few days, has reached a historic level, according to the Balearic Minister for Economy, Tax and Innovation, Lluis Ramis de Ayreflor, speaking yesterday. He explained that the predictions made by his department at the beginning of the year “are very prudent” and, because of this, he considered that they need not be altered for the moment. However, he added that the world economy is now at a “disturbing point” with the price of crude greater than that of 1980, when it precipitated an economic crisis. A barrel of Brent (North Sea) oil is now at a new record of 74 dollars, in comparison with the maximum of 73.34 dollars it had reached a few hours before, while a barrel of Texas “sweet light” reached its own record of 72.35 dollars. According to Ramis de Ayreflor, this will obviously result in higher prices for transport, which will mainly affect destinations further from Europe than the Balearics.