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Trans-Atlantic Luxury for Less
Today's European Wall Street Journal had the same kind of article.
**** February 21, 2006 Itineraries Trans-Atlantic Luxury for Less By JOE SHARKEY For almost a year, airlines have been rushing to add capacity to their trans-Atlantic routes, especially the one between New York and London. Why? That's where the money is ‹ at least in the front of the plane. Mile for mile, hour for hour, first-class and business-class fares on that route make it the most expensive premium-class trip in the world, and the most lucrative route for airlines. First-class fares (about $12,000) account for a small portion of the premium trans-Atlantic market, and some of the major players, like Virgin Atlantic, do not even have first-class cabins. The real action is in business, where the posted round-trip fare is about $8,800, on top-shelf carriers like British Airways or Virgin Atlantic, and the less luxurious but still comfortable business classes of domestic airlines like American, United and Continental. But turmoil is now roiling the North Atlantic skies. As capacity increases, corporations have new muscle to demand discounts for volume. A few major buyers of corporate travel, for example, are able to get that $8,800 fare down to $3,000 and, in a few cases, lower, airline executives say. At the same time, business travelers, who are increasingly accustomed to luxuries in the business-class cabin that surpass what used to be offered in first class, are demanding more. The airlines on the premium routes are therefore under greater pressure to improve their product. And then, three months ago, along came two start-up carriers ‹ the all-business-class airlines Eos and MaxJet. Each threatens to fundamentally change the business model for flying across the Atlantic, especially between New York and London, which the online business-travel columnist Joe Brancatelli calls "the international power route." Matthew J. Bennett, the publisher of Firstclassflyer.com, a subscription Web site that searches for discounts on premium-class travel, said, "The gloves are coming off in the trans-Atlantic business-class fight." British Airways, which has 10 round-trip flights a day between New York and London that account for about half the premium seating capacity on that route, is planning to announce a $170 million makeover of its already highly regarded Club World business-class cabins. That move is another leap in its intense battle for business-class travelers with its archrival, Virgin Atlantic. Virgin, with five flights a day between New York and London, has about 15 percent of the premium-class seats on that route. British Air started the trans-Atlantic premium-class war in 2000 when it began offering its business-class passengers seats that folded out into flat beds. Virgin quickly matched that, and in 2003 upped the ante with longer and wider lie-flat beds. The upgrades reflect the importance of premium-class revenue. In the most recent quarter, for example, British Air posted a 29 percent rise in profit and credited the demand for premium-class travel, which was up more than 10 percent over the year-earlier quarter. "We don't intend to offer the least expensive business-class product; we intend to offer the best," said Robin Hayes, British Air's executive vice president for marketing in the Americas. On that, he gets an argument from David Spurlock, the chief executive of Eos Airlines, a start-up all-business-class carrier that began flying between New York and London last fall. The airline uses Boeing 757 aircraft outfitted with 48 flat-bed seats in private pods that offer 21 square feet of space per passenger ‹ by far the most space among trans-Atlantic competitors. Eos flies one round trip daily. Besides comfort and service, its major selling point is price. The regular round-trip fare is $6,500, and Mr. Spurlock said he and his staff had been working to sign up banks and investment firms for corporate discounts. In many cases, he said, they prefer Eos for its use of Stansted Airport. The major airlines using Heathrow as their London base are not shy about pointing out that both Eos and MaxJet are restricted under aviation treaties to Stansted, with which many travelers, especially Americans, are unfamiliar. But both upstarts have promoted that Stansted is far more convenient than crowded Heathrow to London's financial businesses and to booming high-tech businesses in the immediate suburbs. The major carriers also argue that they have convenient schedules with frequent flights, and, especially for United States domestic carriers, frequent-flier programs and deep corporate discounts. Eos, said Mr. Hayes of British Air, is "a very, very niche player." He went on: "We don't underestimate them because they're smart. But we have 10 flights a day between New York and London, plus a worldwide network. Our customers can easily rebook another flight if they're, say, 20 minutes late getting to the airport." Underscoring the perceived importance of frequent flier and loyalty programs among business travelers, Eos recently announced its own loyalty program, Club 48, that awards mileage points for trips on other airlines. Meanwhile, several domestic carriers, though hamstrung by financial problems, are planning to improve their trans-Atlantic business-class offerings, though no details have been announced. American Airlines, for example, has said it plans to introduce a new business-class cabin with flat-bed seats, probably in 2007. United Airlines has also said it is considering major improvements. All of this is just fine with Gary Rogliano, the chief executive of MaxJet, which started what he calls "middle-class" all-business-class service between New York and London in November, and plans to add another route, Washington to London, in mid-March. Like Mr. Spurlock, Mr. Rogliano said he worked hard to drum up business originating in Britain. "I was surprised by the receptivity we got in the U.K.," he said. "You know, here we are, a start-up airline with, at the time, one airplane. So they knew all the negatives." Nevertheless, he said, MaxJet has signed deals with major banks and other companies that spend $10 million or more on international premium-class air travel and have decided to divert a portion of it to MaxJet. MaxJet has been the most audacious with its fares. The airline, which Mr. Rogliano says will soon add nonstop service between the West Coast and London, flies Boeing 767 airliners equipped with 102 seats, all of them business class. MaxJet's business-class service is more comparable to existing business-class cabins on United States airlines. It does not have flat-bed seats, for example, but reviewers have described the food and service as excellent. Its fares, moreover, are remarkably lower. Over the holidays, MaxJet offered a $999 round-trip fare, through March 31. The fares now are settling in at several levels, up to about $4,000, Mr. Rogliano said. With heavy volume, some corporations are able to book fares in the $1,500 range, he added. But with all this dealing, is anybody still paying the posted $8,800 round-trip fare for the mere pleasure of a relatively short flight (under seven hours) across the Atlantic? Actually, yes, Mr. Hayes said. "There is still a significant part of the market who do pay those fares," he said. Entrepreneurs, self-employed professionals and small-business people traveling at the last minute are among them, as are some leisure travelers for whom luxury trumps price. But others are paying well below the list price. "Clearly, for the big corporations that have real buying power, they're able to negotiate significant discounts. In return, we ask for commitments in terms of the amount of business they guarantee to send us." |
#2
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Trans-Atlantic Luxury for Less
The cretinus is at it again, being chased from his favorite kookie group
about death, his compulsory disease makes him come back here OT of course and utterly uninteresting, unuseful just like him la maison de retraite please !!! "Earl Evleth" a écrit dans le message de news: ... Today's European Wall Street Journal had the same kind of article. **** February 21, 2006 Itineraries Trans-Atlantic Luxury for Less By JOE SHARKEY For almost a year, airlines have been rushing to add capacity to their trans-Atlantic routes, especially the one between New York and London. Why? That's where the money is at least in the front of the plane. Mile for mile, hour for hour, first-class and business-class fares on that route make it the most expensive premium-class trip in the world, and the most lucrative route for airlines. First-class fares (about $12,000) account for a small portion of the premium trans-Atlantic market, and some of the major players, like Virgin Atlantic, do not even have first-class cabins. The real action is in business, where the posted round-trip fare is about $8,800, on top-shelf carriers like British Airways or Virgin Atlantic, and the less luxurious but still comfortable business classes of domestic airlines like American, United and Continental. But turmoil is now roiling the North Atlantic skies. As capacity increases, corporations have new muscle to demand discounts for volume. A few major buyers of corporate travel, for example, are able to get that $8,800 fare down to $3,000 and, in a few cases, lower, airline executives say. At the same time, business travelers, who are increasingly accustomed to luxuries in the business-class cabin that surpass what used to be offered in first class, are demanding more. The airlines on the premium routes are therefore under greater pressure to improve their product. And then, three months ago, along came two start-up carriers the all-business-class airlines Eos and MaxJet. Each threatens to fundamentally change the business model for flying across the Atlantic, especially between New York and London, which the online business-travel columnist Joe Brancatelli calls "the international power route." Matthew J. Bennett, the publisher of Firstclassflyer.com, a subscription Web site that searches for discounts on premium-class travel, said, "The gloves are coming off in the trans-Atlantic business-class fight." British Airways, which has 10 round-trip flights a day between New York and London that account for about half the premium seating capacity on that route, is planning to announce a $170 million makeover of its already highly regarded Club World business-class cabins. That move is another leap in its intense battle for business-class travelers with its archrival, Virgin Atlantic. Virgin, with five flights a day between New York and London, has about 15 percent of the premium-class seats on that route. British Air started the trans-Atlantic premium-class war in 2000 when it began offering its business-class passengers seats that folded out into flat beds. Virgin quickly matched that, and in 2003 upped the ante with longer and wider lie-flat beds. The upgrades reflect the importance of premium-class revenue. In the most recent quarter, for example, British Air posted a 29 percent rise in profit and credited the demand for premium-class travel, which was up more than 10 percent over the year-earlier quarter. "We don't intend to offer the least expensive business-class product; we intend to offer the best," said Robin Hayes, British Air's executive vice president for marketing in the Americas. On that, he gets an argument from David Spurlock, the chief executive of Eos Airlines, a start-up all-business-class carrier that began flying between New York and London last fall. The airline uses Boeing 757 aircraft outfitted with 48 flat-bed seats in private pods that offer 21 square feet of space per passenger by far the most space among trans-Atlantic competitors. Eos flies one round trip daily. Besides comfort and service, its major selling point is price. The regular round-trip fare is $6,500, and Mr. Spurlock said he and his staff had been working to sign up banks and investment firms for corporate discounts. In many cases, he said, they prefer Eos for its use of Stansted Airport. The major airlines using Heathrow as their London base are not shy about pointing out that both Eos and MaxJet are restricted under aviation treaties to Stansted, with which many travelers, especially Americans, are unfamiliar. But both upstarts have promoted that Stansted is far more convenient than crowded Heathrow to London's financial businesses and to booming high-tech businesses in the immediate suburbs. The major carriers also argue that they have convenient schedules with frequent flights, and, especially for United States domestic carriers, frequent-flier programs and deep corporate discounts. Eos, said Mr. Hayes of British Air, is "a very, very niche player." He went on: "We don't underestimate them because they're smart. But we have 10 flights a day between New York and London, plus a worldwide network. Our customers can easily rebook another flight if they're, say, 20 minutes late getting to the airport." Underscoring the perceived importance of frequent flier and loyalty programs among business travelers, Eos recently announced its own loyalty program, Club 48, that awards mileage points for trips on other airlines. Meanwhile, several domestic carriers, though hamstrung by financial problems, are planning to improve their trans-Atlantic business-class offerings, though no details have been announced. American Airlines, for example, has said it plans to introduce a new business-class cabin with flat-bed seats, probably in 2007. United Airlines has also said it is considering major improvements. All of this is just fine with Gary Rogliano, the chief executive of MaxJet, which started what he calls "middle-class" all-business-class service between New York and London in November, and plans to add another route, Washington to London, in mid-March. Like Mr. Spurlock, Mr. Rogliano said he worked hard to drum up business originating in Britain. "I was surprised by the receptivity we got in the U.K.," he said. "You know, here we are, a start-up airline with, at the time, one airplane. So they knew all the negatives." Nevertheless, he said, MaxJet has signed deals with major banks and other companies that spend $10 million or more on international premium-class air travel and have decided to divert a portion of it to MaxJet. MaxJet has been the most audacious with its fares. The airline, which Mr. Rogliano says will soon add nonstop service between the West Coast and London, flies Boeing 767 airliners equipped with 102 seats, all of them business class. MaxJet's business-class service is more comparable to existing business-class cabins on United States airlines. It does not have flat-bed seats, for example, but reviewers have described the food and service as excellent. Its fares, moreover, are remarkably lower. Over the holidays, MaxJet offered a $999 round-trip fare, through March 31. The fares now are settling in at several levels, up to about $4,000, Mr. Rogliano said. With heavy volume, some corporations are able to book fares in the $1,500 range, he added. But with all this dealing, is anybody still paying the posted $8,800 round-trip fare for the mere pleasure of a relatively short flight (under seven hours) across the Atlantic? Actually, yes, Mr. Hayes said. "There is still a significant part of the market who do pay those fares," he said. Entrepreneurs, self-employed professionals and small-business people traveling at the last minute are among them, as are some leisure travelers for whom luxury trumps price. But others are paying well below the list price. "Clearly, for the big corporations that have real buying power, they're able to negotiate significant discounts. In return, we ask for commitments in terms of the amount of business they guarantee to send us." |
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Trans-Atlantic Luxury for Less
Runge a écrit : The cretinus is at it again, ---- cut-- Are you talking about yourself?? This posting is useful, especially those of us who fly Business or First class. Those flight rates are all over the map. For instance, August economy fares from JFK to London are $744 at about their lowest, and $523 in November. This is normal. The lower winter rates bring in customers. But business class rates are all over the map with a low of $1948 with conditions attached to $7300 for refundable full fare. First class is evern higher running over $13,000. The ratio between the highest to lowest (like $13000/$523) is 25. Nobody claims one gets 25 times more space and service on lst class than on Economy. On the trains in Europe the classical surcharge for first class was 50% more than 2nd. Therefore the market prices for airplanes flights are pathological in some respect. If so, competitive forces should be at work, new carriers should come into existence to correct this sort of thing. It may be happening, which is what the posting is about. |
#4
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Trans-Atlantic Luxury for Less
wrote in message ups.com... But business class rates are all over the map with a low of $1948 with conditions attached to $7300 for refundable full fare. First class is evern higher running over $13,000. The ratio between the highest to lowest (like $13000/$523) is 25. Nobody claims one gets 25 times more space and service on lst class than on Economy. On the trains in Europe the classical surcharge for first class was 50% more than 2nd. Therefore the market prices for airplanes flights are pathological in some respect. If so, competitive forces should be at work, new carriers should come into existence to correct this sort of thing. It may be happening, which is what the posting is about. It is happening , Maxjet is one new airline offering business class tickets to New York and Washington from London and Stansted http://www.maxjet.com/ Keith ----== Posted via Newsfeeds.Com - Unlimited-Unrestricted-Secure Usenet News==---- http://www.newsfeeds.com The #1 Newsgroup Service in the World! 120,000+ Newsgroups ----= East and West-Coast Server Farms - Total Privacy via Encryption =---- |
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Trans-Atlantic Luxury for Less
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Trans-Atlantic Luxury for Less
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#8
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Trans-Atlantic Luxury for Less
On Fri, 07 Apr 2006 17:03:27 +0200, B wrote:
On Fri, 07 Apr 2006 10:45:18 GMT, (Jim Ley) wrote: Except of course what you're actually comparing there is the cost of a flexible and totally inflexible ticket, what you get for the extra is the flexibility, not the space. Actually, if you buy a flexible economy ticket, there is a very good change you will be upgraded to business. On BA, at the very least they will upgrade you to Premium Economy, and if there is space in Business and Premium Economy is full, they will probably offer you Business. I flew KIN-LHR via MIA on BA using full fare economy last week (bought the day before), despite their being space in both premium economy and business no upgrade was given on the MIA-LHR leg. I flew full fare LGW-AMS and AMS-LGW yesterday on full fare economy, no upgrades there either - although the first plane was full - change of aircraft though so I didn't get the exit row I thought I was getting from when I checked in :-( Jim. |
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Trans-Atlantic Luxury for Less
"Runge" ) writes:
Business or First class. Therefore the market prices for airplanes flights are pathological in some respect. If so, competitive forces should be at work, new carriers should come into existence to correct this sort of thing. Hmm. I'm reminded there used to be an airline named Wardair that flew Canada to UK. It started as a charter airline and went scheduled. They offered stuff like real china and upgraded service, excellent meals and lashings of good booze. In effect it was business-class at economy prices. As a charter airline Wardair was senstationaly successful. But after they went scheduled, they found themselves running half-empty planes. In the end, they went broke and sold out to CP Air (which a few years later also went broke). Sad. |
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Trans-Atlantic Luxury for Less
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