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Showing posts with label BA. Show all posts
Showing posts with label BA. Show all posts

Monday, 1 October 2012

London Heathrow (LHR) airport is overrated

...if your journey starts or ends in Central London.

Sure, airlines have good reasons to want to fly into Heathrow, most certainly British Airways and the rest of Oneworld airlines, as it is an important hub for them (in 2007 47% of BA's traffic at London Heathrow was connecting).

Connecting traffic at Heathrow is also important for non-Oneworld airlines. CAA data for 2007 shows how of all airlines carrying over half a million passengers at Heathrow, connecting traffic was over 15% of their passage in all cases except in three (Swiss, Air France, and KLM, with Alitalia just above this mark). As expected, since they did not have a local partner, connecting traffic at Heathrow was relatively less important for Skyteam carriers).

I am not sure these numbers would still be valid for Star Alliance's carriers though, I guess that after BMI's demise and absorption by British Airways its share of connecting passengers will fall to Skyteam's levels.

Connecting traffic involving non-aligned carriers was 3.5M, however, 1.4M involved a Oneworld transfer, another million involved Star (most likely BMI, that is now gone) and transfer traffic between non-aligned carriers at LHR was less than one million passengers in total. These might still sound like big figures, but they are the aggregate of several tens of non-aligned airlines flying to LHR on that year and I suspect the Gulf carriers Emirates, Etihad, Gulf Air and Qatar Airways are responsible for a significant part of this traffic.

So, even if you are not in Oneworld, you can still benefit quite a lot from flying to an airport with lots of connections (I must say the connecting traffic figures for non-Oneworld carriers are higher than I was expecting...)

But is this extra traffic enough to justify the London Heathrow premium? I don't have enough information to be able to answer this question...but if you rely mainly in origin and destination traffic, and that means basically, people that start their journey in central London, I wonder why London Gatwick does not emerge as a more serious competitor to London Heathrow.

Will Gatwick airport finally get the credit its deserves?

I have been using London Gatwick a lot this year, traveling in and out of several locations in central London and I struggle to find the reasons why LHR would be a better option for a passenger that has London as the start or end point of his journey and that is not flying with a Oneworld carrier.

LGW might be slightly further away from London than LHR, but the difference is not huge (although maybe just far enough to discourage those that get to the airport by taxi?). LHR has the tube and the (in my opinion) overpriced Heathrow Express, but LGW has several fast mainline train options, with frequencies of no more than 15 minutes, that can take you to several points in central London (Victoria, Charing Cross, St.Pancras International, London Bridge) in about half an hour. It might be slightly more expensive than the tube and 10 minutes longer than the Heathrow Express but I think it beats both  hands down in terms of value.

My guess is that more and more people will warm up to the charms of Gatwick airport as pricing becomes more of a tool for rationing airport capacity in the South-East of England, at least until it solves its chronic shortage of airport capacity and a final decision is taken about the future of Heathrow (to check the different options, check this piece that was recently published on Flightglobal).

Monday, 23 April 2012

What is going to happen to BMI Diamond Club miles after BA's acquisition?

As most of you might already be aware of, British airline BMI was sold by Lufthansa to its Oneworld competitor IAG (aka British Airways). Once the news was confirmed, one thought came to my mind: what happens with BMI's Diamond Club frequent flier miles?

As both airlines operated out of the UK, many frequent travelers were members of both British Airways' executive club and BMI's Diamond Club.

The truth is that BMI has moved fast to inform its Diamond Club members and in the last few days has sent a couple of messages providing updates...it looks like BMI Diamond Club cardholders are actually going to get a good deal and, whereas they will have only until the 31st of May to use their miles within  the Star Alliance group, the Diamond Club programme itself will continue to work as usual.

This is possibly the reason that BMI is still accepting applications for its Diamond Club programme while I am writing these lines:


I ignore if this "business as usual" will last for long, as Diamond Club members  are being invited to join British Airways' Executive Club programme. They will also be able to exchange miles into IAG's Avios at a rate of 1:1.

This is literally, an excerpt of BMI's Diamond Club notification email:

"As part of the transition of bmi into British Airways, from 1 May 2012 British Airways is inviting you, as a Diamond Club member, to also join the Executive Club at your equivalent tier status level. Diamond Club Gold customers will be invited to become Gold members of the Executive Club and Silver members to become Silver, which will be in addition to your Diamond Club membership. Further details will follow shortly."

Whereas it's not stated explicitly, I guess IAG's plan is to progressively transition all Diamond Club members to Executive Club. In any case, I think Diamond Club's members are getting quite a good deal and many of those that were on both programmes will be able to consolidate and advance their status within the programme really fast.

Wednesday, 16 November 2011

To Fly to Serve: British Airways' great retro commercial

Those of you that live in the UK and have been to cinema recently would have probably watched it, as it has been on the air for a few weeks already...I finally had the chance to watch BA's commercial "To Fly to Serve" a few days ago and quite liked it, so I thought about sharing it here for all readers to enjoy!

By the way, I am not sure what the first two aircraft shown in the video are...any clues? (the second one looks like a Dragon Rapide, but not sure)


Friday, 17 December 2010

George Soros invests in Flybe as the British regional airline readies its expansion plans


Pointing upwards! (Picture: Wikipedia)

What is the fastest way to become a millionaire? Start as a billionaire and invest in an airline....! but it looks like billionaire George Soros would rather disagree!

Well, true, a £7M. investment in Flybe is not even pocket money for the famous tycoon (it will buy him around 3.4% of the company), however I find it significant that such an experienced and powerful investor, that managed to sink the pound sterling in 1992, is backing Flybe at this time, when ambitious expansion plans are under way at the British regional airline. Flybe has just floated in the stockmarket and plans to use the proceeds of the flotation to double its fleet and possibly open new bases in Europe or acquire another regional airline, another sign of confidence in the future, is that Flybe's current owners are not planning to cash their money in, at least not in the short term.

There is no lack of examples to support the old joke about the dubious profitability of airline investment (even Warren Buffett got caught on this one!), however, it is remarkable how Flybe has been able to build its niche business in a market strongly dominated by behemoths like Ryanair, Easyjet and BA, or I should say, precisely by being able to exploit the markets gaps these airlines were leaving: as opposed to BA and its Heathrow focus, Flybe has an extensive regional network, as opposed to Ryanair and Easyjet, Flybe caters mainly to the business traveller...will it be able to replicate its business model in the continent? in any case, it looks like we are going to get used to hearing about Flybe more often, as the British regional champion is onto something big!

Saturday, 12 June 2010

MEA: the resilient airline

A MEA A320 at Beirut airport

How resilient can an airline be in the face of adversity? Well, someone at Middle East Airlines (MEA), Lebanon's flag carrier, could possibly answer this question. The MEA of today is a modern airline serving a resurgent travel market (Beirut is one of the main tourist destinations in the Middle East and Eastern Mediterranean region) however during it's more than sixty years of existence MEA has had to fly through extreme turbulence...

The recent halt in traffic as a result of the volcanic ash cloud has put some European airlines in a difficult situation...but try keeping an airline operating with its main base intermitently closed for over 15 years! This is what happened during Lebanon's long civil war (1975-1990), when MEA survived by leasing aircraft and seconding staff to international companies. Once the war was over it quickly rebuilt itself, however the political situation has remained extremely unstable in that region and this has repeatedly affected its capacity to operate. As recently as 2006, war forced again MEA to move its operations abroad, this time to Damascus and Amman, until the situation was normalized.

Despite all these problems MEA has kept its expansions plans and building a young all-Airbus fleet: 4 Airbus A320, 6 Airbus A321 and 4 Airbus A330, serving destinations in Europe, the Middle East and West Africa, where there is an important Lebanese community.

One of the things that have caught my attention is that MEA operates its aircraft with a very low-density seating layout compared to European airlines and well below the capacity of these aircraft types. For example, its A320 has 24 seats in business class and 102 and only in economy, 126 in total (as a reference, BA's A320s have between 149 and 156 seats), the A321 features 31 business seats and 118 in economy, 149 in total! (to make the comparison, BMI, that competes with MEA on the London (LHR)-Beirut route has a 183-seat layout, 40 seats more than MEA) I have never flown MEA, but I guess that passengers enjoy quite a lot of space on-board!

A MEA A321 with the Lebanese mountains in the background

Thursday, 10 June 2010

Planespotting at Larnaca airport, Cyprus

I recently made a stopover at Larnaca's new airport, in Cyprus. I was positively impressed by the new terminal, that opened recently next to the old Larnaca airport facilities. The airport is currently handling over 5 million passengers a year, and there are plans to expand capacity to 9 million, it is managed by a French-led consortium, Hermes Airports, made up of Bouygues Batiment International (22%) Egis Projects (20%), the Cyprus Trading Corporation (a local retail group-10%), Iacovou Brothers (a local contractor-10%), Hellenic Mining (10%), Vancouver Airport Services (10%), Ireland's Dublin Airport Authority (Aer Rianta International) (10%), Charilaos Apostolides (a local construction company-5%) and Nice Côte d'Azur Airport (3%). This group also manages Cyprus' other airport at Paphos,

Besides its amplitude and luminosity, one of the things I liked is that at the tip of the terminal there is a large glass wall that lets you keep track of all the planes that land and take off. It is not a high-traffic airport but nevertheless you could do some interesting plane-spotting.


A colourful A-320 of Swiss charter company Edelweiss Air, getting ready to return a load of tan Swiss holidaymakers to Zurich




An Aeroflot A-320 arriving from Moscow. Aeroflot serves the large Russian community in Cyprus, which is also an important holiday destination for Russians.


A Eurocypria Boeing 737, see our previous entry on this Cypriot charter company


Aegean A-320 departing for Thessaloniki, Greece


A Cyprus Airways A-330, the company uses these aircraft in its London Heathrow route


A British Airways Boeing 767 departing for London Heathrow. Besides being a former British possession, Cyprus is a traditional holiday destination for British tourists

Monday, 15 February 2010

Unusual planespotting opportunity at Stansted

The spell of bad weather that the British Isles endured last January had the unintended consequence of providing some unusual planespotting opportunities. Here are some pics taken while I was waiting to board my Easyjet flight at Stansted airport (STN)...yes, this is Stansted! neither British Airways nor Virgin Atlantic have moved home...what happened is that the severe weather forced the closure of Gatwick (LGW) as well as other airports in the South-East of England at different times during the first weeks of January and planes had to divert to alternative airports(as seen in the pictures, weather conditions at Stansted were also far from ideal!). Birmingham airport (BHX) also took some diverted flights (including some Stansted-bound flights, as the Essex airport was also forced to close temporarily), the Birmingham Aviation Enthusiast's Group took the opportunity to post some nice pictures in their blog.


Foto: VA Boeing 747 "Virginia Plain"


Foto: British Airways Boeing 777

Monday, 3 August 2009

Barcelona airport (BCN) or how to cope with simultaneous demand and offer shocks

foto: Terminal 1 by Ricardo Bofill (from Creative Commons)

Barcelona airport got its new terminal last month, almost doubling its capacity overnight, this would be alright was it not for the simultaneous demand and offer shocks the airport is facing.

Although designed in times of double digit growth the new terminal opens when the airport is experiencing its first decrease in passenger numbers in a very long time (-15% in the first quarter of 2009 compared with the same period last year). Europe is in the midst of one of the worst economic crisis in living memory and this would be worrying enough for an airport that relies almost exclusively on short and medium haul traffic, but is even worse when considering that the Spanish economy is among the hardest hit by the crisis. Tourist numbers are plummeting and some airlines have been cutting services (Easyjet has reduced capacity, British Airways is axing its Gatwick services). Other factors are contributing to the fall in numbers, the new high speed train link between Barcelona and Madrid has taken half of the market of the densest and most profitable route from BCN.

The recent merger between Clickair and Vueling, with the resulting company controlled by Iberia, is expect to bring some rationalization on some routes where the two companies had overlapping services. In the long term this might result in a stronger company able to maintain its base at Barcelona (Mr.O'Leary would probably disagree...).

And talking about Ryanair, the offer glut has not prevented Ryanair from opening a new base at Reus (REU), about one hour drive south of the center of Barcelona, to add to its current base at Girona (GRO), about one hour north. It seems that Ryanair is doing well in Barcelona (surely helped by the popularity of the city among the European city-breakers and young travelers). there was even talk of Ryanair eyeing slots at BCN...we do not know whether has there been a firm offer but it seems that the company expected some concessions that Aena was not ready to grant.

There is certainly the concern in certain sectors of Barcelona business and political spheres about BCN becoming an almost exclusively low cost airport. Hence, the takeover of the the troubled airline Spanair, engineered by a Barcelona-based consortium with the support of Catalan institutions, with the objective of making it the "Barcelona airline" (Vueling might also have some claim to the title). The hope is that its membership of Star Alliance will help Barcelona to become an alternative Iberian hub (although smaller than Iberia and Oneworld's at MAD). A challenging task indeed!
The reality in the short term is that Spanair does not have any long range plane in its fleet, so the long haul hub might have to wait, however the recent success of some Star Alliance partners at BCN (like the Singapore Airlines connection) allow for some optimism. Maybe Spanair could be a regional distributor, in the South-West of Europe for its long-haul Star Alliance partners? or will it continue to be a feeder for Lufthansa (a sort of Air Dolomiti)? time will say...the truth is that if it is currently difficult for BCN to become a hub, it has never had it better, since it is the first time that BCN is the base of two airlines of a respectable size.

Therefore, and despite the crisis, I am bullish on the long run prospects of BCN. It is the gateway to a densely populated and relatively rich area, with a diversified economy and some of the top tourist destinations in Europe. The airport itself is very close to the urban center (although could be better connected by public transportation with its hinterland)and there might well be a latent under served demand for direct long haul travel that is currently flowing through other airports (mainly MAD).

The 747s of the image might never materialize (smaller planes like the 787 might stand a better chance at BCN) but as Ryanair has proven at Girona (from nearly 0 regular traffic to 5,5M passengers in just over 5 years) sometimes offer can create its own demand...