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."

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."

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.

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




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On 7 Apr 2006 02:16:22 -0700, wrote:

Runge a =E9crit :
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.

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.

Jim.

On Fri, 07 Apr 2006 10:45:18 GMT, (Jim Ley) wrote:

On 7 Apr 2006 02:16:22 -0700, wrote:

Runge a =E9crit :
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.

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.
--
Barbara Vaughan
My email address is my first initial followed by my surname at libero dot it
I answer travel questions only in the newsgroup

if you rich man like him, take him.

a écrit dans le message de news:
...

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.

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.

"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.

On Fri, 07 Apr 2006 20:04:38 GMT, (Jim Ley) wrote:

On Fri, 07 Apr 2006 17:03:27 +0200, B wrote:

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 :-(

I must have a nice smile or something.
--
Barbara Vaughan
My email address is my first initial followed by my surname at libero dot it
I answer travel questions only in the newsgroup