Page 7 - CTM Travel Matters magazine
P. 7
TRAVEL TRENDS | 07
WINGS The low cost carriers’ CityJet’s most frequent route is
OVER business model of unbundled nine times a day LCY-Amsterdam
fares and often initially at codeshare with KLM and one third of the
EUROPE least, secondary airports, passengers on this route connect with
overturned the market, long-haul services.
Flying short-haul slashed airfares and forced
across Europe is an the legacy carriers to re-think In continental Europe the same is
altogether different their offering. Out went hot happening, so too in the US where
experience to what meals on British Airways and partner airlines are using different brand
in came sandwiches; out went names to provide domestic services.
it was a decade fully flexible fares and in came
ago. Gillian Upton baggage-only fares. Across Europe, the arrangement
charts the changes is either a codeshare, a wet lease
Surveys point to average savings of arrangement or a white label provision,
35,000 feet up 35% on domestic routes, which cannot depending on whether the contracted
be sniffed at as long as the schedule and airline uses its own equipment or not.
Aviation economics are a cyclical affair. fare type suits the corporate market. The
Look at one quarter of an airline’s fact that EasyJet now boasts that 80% Aircraft such as the twin-engined,
of its passenger mix is business travellers turbo prop, 70-seat Bombardier
financial figures and the bottom line reflects these new short-haul travel Q400s can sustain 300-400km short-
looks healthy, then the next quarter it’s patterns. haul routes, leaving legacy carriers
not. The price of oil is one major factor to purchase the A350s, A380s and
As LCCs took a stronger grip on the Dreamliner aircraft that fulfill their long-
in the mix but also world events and, market, they started operating out of haul route network.
naturally competition. primary airports. Ryanair’s route to
Frankfurt Hahn airport was one that Business travellers now have greater
It has been fierce competition in the every traveller was keen to see the back choice when flying short-haul and
European short-haul market that has of. LCCs also upped their frequencies have viable alternatives to travelling
changed the way we fly forever on high and started offering some of the frills to Heathrow to pick up a long-haul
volume, point to point routes such as synonymous with legacy carriers. In flight. In some cases, legacy carriers still
London-Paris or Manchester-Frankfurt. came bookable seats and fares that have the advantage with through fares
We can thank low cost carriers (LCCs) offered some flexibility in terms of and through baggage but even these
- chiefly EasyJet and Ryanair - for re- changes and cancellations. advantages are being matched by some.
shaping the entire market, not forgetting
Eurostar that has also helped to dampen Anthony Drury, Head of Business at Flybe’s codeshare with Virgin Atlantic
EasyJet, says that allocated seating is a good example as it provides a
demand for flights to Paris. was a fundamental move in wooing the seamless journey for the business
corporate market, alongside managed passenger. A through ticket can be
contracts booked through TMCs, direct purchased between say, Exeter-Los
booking through the website by SMEs, Angeles and the passenger will not have
and backed up by brand awareness. to re-check-in their baggage.
The legacy carriers realised that Gatwick Airport’s Connect baggage
something had to change fundamentally service in the arrivals hall helps too. This
if they were to sustain their vital feeder service facilitates the baggage of any
traffic to their far more profitable long- passenger connecting between two
haul services. LCCs or a legacy and LCC carrier.
Some emulated their LCC The dynamics of the short haul market
counterparts, while others travelled an is good news for business travellers
entirely different route, choosing instead while at the same time helping to level
to contract out their short-haul network out the peaks and troughs of airlines’
to carriers who could make these ’thin’ bottom lines.
routes financially viable.
Airlines such as bmi, Flybe, CityJet
and Eastern Airways now operate short-
haul services for some legacy carriers.
They have the right equipment, which
are the smaller jets with 50-100 seats,
and offer their services across multiple
regional airports in the UK.
WHO’S bmi regional: c odeshares with Lufthansa and has interline agreements with United
WHO OF and Condor
REGIONAL CityJet: ‘Wet lease’ business with Air France and SAS.
CARRIERS
Flybe: ‘White label’ offering comprises 5 aircraft which fly on behalf of SAS; 2 on
behalf of Brussels Airlines. Codeshares with Air France, Air India Aer Lingus,
BA, Cathay Pacific, Emirates, Etihad, KLM, Finnair, and Virgin Atlantic.
WINGS The low cost carriers’ CityJet’s most frequent route is
OVER business model of unbundled nine times a day LCY-Amsterdam
fares and often initially at codeshare with KLM and one third of the
EUROPE least, secondary airports, passengers on this route connect with
overturned the market, long-haul services.
Flying short-haul slashed airfares and forced
across Europe is an the legacy carriers to re-think In continental Europe the same is
altogether different their offering. Out went hot happening, so too in the US where
experience to what meals on British Airways and partner airlines are using different brand
in came sandwiches; out went names to provide domestic services.
it was a decade fully flexible fares and in came
ago. Gillian Upton baggage-only fares. Across Europe, the arrangement
charts the changes is either a codeshare, a wet lease
Surveys point to average savings of arrangement or a white label provision,
35,000 feet up 35% on domestic routes, which cannot depending on whether the contracted
be sniffed at as long as the schedule and airline uses its own equipment or not.
Aviation economics are a cyclical affair. fare type suits the corporate market. The
Look at one quarter of an airline’s fact that EasyJet now boasts that 80% Aircraft such as the twin-engined,
of its passenger mix is business travellers turbo prop, 70-seat Bombardier
financial figures and the bottom line reflects these new short-haul travel Q400s can sustain 300-400km short-
looks healthy, then the next quarter it’s patterns. haul routes, leaving legacy carriers
not. The price of oil is one major factor to purchase the A350s, A380s and
As LCCs took a stronger grip on the Dreamliner aircraft that fulfill their long-
in the mix but also world events and, market, they started operating out of haul route network.
naturally competition. primary airports. Ryanair’s route to
Frankfurt Hahn airport was one that Business travellers now have greater
It has been fierce competition in the every traveller was keen to see the back choice when flying short-haul and
European short-haul market that has of. LCCs also upped their frequencies have viable alternatives to travelling
changed the way we fly forever on high and started offering some of the frills to Heathrow to pick up a long-haul
volume, point to point routes such as synonymous with legacy carriers. In flight. In some cases, legacy carriers still
London-Paris or Manchester-Frankfurt. came bookable seats and fares that have the advantage with through fares
We can thank low cost carriers (LCCs) offered some flexibility in terms of and through baggage but even these
- chiefly EasyJet and Ryanair - for re- changes and cancellations. advantages are being matched by some.
shaping the entire market, not forgetting
Eurostar that has also helped to dampen Anthony Drury, Head of Business at Flybe’s codeshare with Virgin Atlantic
EasyJet, says that allocated seating is a good example as it provides a
demand for flights to Paris. was a fundamental move in wooing the seamless journey for the business
corporate market, alongside managed passenger. A through ticket can be
contracts booked through TMCs, direct purchased between say, Exeter-Los
booking through the website by SMEs, Angeles and the passenger will not have
and backed up by brand awareness. to re-check-in their baggage.
The legacy carriers realised that Gatwick Airport’s Connect baggage
something had to change fundamentally service in the arrivals hall helps too. This
if they were to sustain their vital feeder service facilitates the baggage of any
traffic to their far more profitable long- passenger connecting between two
haul services. LCCs or a legacy and LCC carrier.
Some emulated their LCC The dynamics of the short haul market
counterparts, while others travelled an is good news for business travellers
entirely different route, choosing instead while at the same time helping to level
to contract out their short-haul network out the peaks and troughs of airlines’
to carriers who could make these ’thin’ bottom lines.
routes financially viable.
Airlines such as bmi, Flybe, CityJet
and Eastern Airways now operate short-
haul services for some legacy carriers.
They have the right equipment, which
are the smaller jets with 50-100 seats,
and offer their services across multiple
regional airports in the UK.
WHO’S bmi regional: c odeshares with Lufthansa and has interline agreements with United
WHO OF and Condor
REGIONAL CityJet: ‘Wet lease’ business with Air France and SAS.
CARRIERS
Flybe: ‘White label’ offering comprises 5 aircraft which fly on behalf of SAS; 2 on
behalf of Brussels Airlines. Codeshares with Air France, Air India Aer Lingus,
BA, Cathay Pacific, Emirates, Etihad, KLM, Finnair, and Virgin Atlantic.
