As airlines fold and fuel prices soar, Vijay Mallya  has secured a coveted slot at Heathrow for his Kingfisher Airlines which, from tomorrow, will operate daily fights to India’s IT hub, Bangalore.

From October, the airline will also operate daily flights to Mumbai.

Mr Mallya says Kingfisher offers a business class service superior to Virgin and BA. Speaking at Heathrow today, he said: “We’re Harrods in the sky and, economic downturn or not, people with money to spend will not stop going to Harrods.”

With this in mind he is confident Kingfisher can lure business travellers away from some of the more established airlines.

“We’ve always focused on delivering superior value – a full-blown first-class experience at a businessclass fare.

“It follows the same business model as Virgin Upper Class but our Kingfisher First is more luxurious than Virgin Upper Class. With in-flight dining out of London we have catering from Amaya and Chutney Mary – some of the most awarded Indian restaurants in the UK. We’ve spared no effort. But let’s be clear, we don’t discount, our fares are full fares.”

Mr Mallya, 52, who has been dubbed “India’s Richard Branson”, added that the current difficulties faced by other airlines were of little concern to him.

The airline said it was reshaping its business to ensure it remained strong during the economic downturn.

“No airline is immune from the recession,” said Virgin Atlantic chief executive Steve Ridgway.

The airline said it was talking to staff and unions in order to find ways to avoid compulsory redundancies.

Mr Ridgway added airlines had to reduce their costs because of the current fall in demand for travel.

“We need to stay healthy so we’re ready to grow again when economic conditions allow,” he said.

Virgin Atlantic employs about 8,500 people worldwide.

Earlier, budget airline Ryanair announced cuts in its summer schedule at Dublin airport, saying it would result in the loss of 200 jobs.

“In the short run, we’ve been somewhat of a beneficiary” of the downturn, Burger King CEO John Chidsey told Reuters in an interview in Taiwan on Wednesday. The company announced a new partnership and expansion plan in Taiwan.

“People who can’t afford to go to (mid-priced restaurants) but still want to go out — we’ve benefited from that. The question is if things get worse, do people decide at some point they should just stay at home?”

Chidsey said that if global credit markets remain frozen, a bigger longer-term concern for his company could be financing for Burger King’s franchisees, which operate many of the company’s restaurants.

Released by the Conservative Party – the memo comes as rumours persist of a cabinet shuffle – following comments by the Chancellor Alastair Darling.

The leaked Home Office document warns that crime, benefit fraud and the threat of terrorism are expected to surge as the economic downturn continues.

The report said hostility towards migrants will rise as competition for jobs stiffens.

It puts more pressure on the Government after the Chancellor admitted the economy faces its biggest challenge for 60 years.

It outlines the potential rises in crime, including violent crime, that could occur because of the credit crisis. Overall crime is expected to rise as a result of the more difficult economic times, which could also fuel terrorism, it warns.

The document also claims there will be an increase in “hostility” towards migrants as people question the financial assistance newcomers are given by the state.

The Conservatives said the revelations “ripped the veil” off complacent statements made by ministers about improving performance at the Home Office. In particular there is concern about lack of resources at Britain’s border security operations.

The Asian credit market has also been feeling the heat. This is reflected in a sharp rise in Asian dollar bond yields. We believe that this, coupled with a slowdown in portfolio equity inflows, private equity inflows and real estate investments, will weigh adversely on India’s growth outlook. For the last 3-4 years, India’s growth acceleration trend has benefited more from the globalization of capital markets than from the globalization of trade. This trend now appears to be reversing.

Nearly 80 percent of the students were employed, with 35 percent of them working only during term time. About half of the latter told NUS they were forced to work to meet rising costs.

The survey is part of the NUS’ three-year research project into students’ experiences before, during and after their studies.

Of those who work during term time, a third work more than 17 hours a week, while three percent work more than 33 hours, the study found. The average is 14 hours. For majority of the students, however, the main reason for work is extra money for clothes and socialising.

However, the NUS has pointed out that the number of hours depends on why students work – “those working longer hours are more likely to be working to meet basic living costs or pay for books or other study equipment”.

The report suggests that the problems for both households and businesses are set to get worse, as the effects of the credit crunch intensify.

There are already rising concerns over the state of the economy, and officials have said that these concerns are set to get worse, as people realise that the credit squeeze could continue for some time to come.

Recent reports have already shown that consumer and business confidence levels have plummeted over recent months.

The data comes from the Bank of England, and a report from the central bank stated: “Lenders reported that their expectations for the housing market, the changing economic outlook and changes in their appetite for risk had contributed to the decline in credit availability.”

One economist stated: “An end to the credit crunch does not seem to be in sight if the Bank’s second quarter credit conditions survey is anything to go by. Overall, further evidence that the economy is heading for a nasty downturn.”