TUI to enter UK low-cost airline business

[mpenage]

TUI to enter UK low-cost airline business:

http://uk.news.yahoo.com/030915/80/e8hch.html

[beardy]

I guess that if they don't have the business in Germany to fill the aircraft and they have to pay fixed costs on them then it is better to use the aircraft to generate cash flow to defray those fixed costs (even if it doesn't cover them entirely.) In the short term it probably makes sense to operate them at a loss that is less of a loss than leaving them idle. MYT seem to be utilising their spare aircraft in the same way.

Too many seats are available, cheaply, in the European charter market.

[FLYMATE]

So do we get a sort of Britannia-Lite ? Oh dear, I remember the Britannia Luton Belfast route they started back in the eighties. (Possibly the first ever low-cost flight) £29 each way, billed as London to BFS. A seat, cup of coffee and a free biscuit, with the option to buy a sandwich and proper "drink".It was flown to utilise aircraft at Luton that were sitting idle. It was a half hearted enterprise.

Then Britannia started scheduled flights to Las Palmas,Tenerife and other places. They didn't sell too well as people knew that actually they were going on a charter aircraft but paying full fare. So after a few years and a good few "carriage clocks" later ,(i'll explain those later), Britannia pulled out of "lo-cost BFS" and "scheduled", to concentrate on what they did well - charter flights.

The carriage clocks were given out to "full fare" pax on the LPA/TFS etc flights to make them feel better after having sat on a cramped charter aircraft, and having sat next to "bucket and spade" passengers who had paid so little for their flight. Most of the time, the carrage clocks were broken, having been knocked senseless upon loading onto the aircraft in the duty free bars...

So TUI managers, take the time to go speak to the crews that flew those BFS and Scheduled flights back in the 80's...
Britannia, stick to what you do well...Charter...

[newswatcher]

Flymate, I think you underestimate the inroads into the holiday business of the Internet DIY business, supported on the backs of the low-cost carriers. If TUI stay with the charter holiday scene, they could soon be struggling. Surely better to maximise their capacity by tapping into the low-cost market. If they do it right, then they will "retain" pax that have had a succesful package holiday with them. :ok: :ok:

Looks like they will be taking it steady, only introducing two new planes by the summer of next year, growing to a planned fleet of 34.

see also - http://www.thisismoney.com/20030916/nm67813.html

[Buster the Bear]

FLYMATE, the flights to/from Belfast were near full most of the time. The aircaft would fly to Belfast in the morning, return and do two German troopers, than fly off to Belfast in the evening. During the summer, the aircaft would do a night charter as well. Once the trooping contract was lost/not bid for and the 737-200's sold off, the Belfast was no more.

Was the first London Lo-Co route IMHO.

More exciting news for Luton, we must wait and see?

[Buster the Bear]

16 September 2003

TUI UK steps up seat-only for S04 with two dedicated planes (PA-28's?)

TUI AG has announced plans to expand the seat-only operations of the UK business for S04 by adding two new planes to serve traditional summer sun destinations. Full details, such as destinations and schedules, will be unveiled in due course. TUI AG said that the business model for the new project uses the existing Britannia fleet and ‘adds extra capacity to be exclusively for point-to-point.’ The news came out of a board meeting in Hannover. The AG says that the move is a strategic response to the strong growth of the low-cost carrier market. The AG says that the 5% growth of the UK market over the past four years ‘ is almost all attributable to the dynamic increase in the no-frills sector.’ The release also says that TUI will use Navitaire’s Open Skies reservation platform, system of choice for most low-cost carriers. TUI’s stand-alone low-cost carrier targeted at the German market, Hapag-Lloyd Express, uses Open Skies’ reservation and yield management products, as do MyTravelLite and Air 2000. The system is also favoured by Ryanair. Recently Will Waggott, finance director for TUI Northern Europe which covers all the UK businesses including Britannia, has said that he, and TUI UK’s legal team, was looking at ways to free seat-only sales from the costs of bonding, giving the tour op a level-playing field with the low-cost carriers who are able to sell seats without an ATOL. He told Travel Weekly that by ‘not changing practically anything we can save a bunch of money.’

[LTNman]

Luton – Belfast was only ended by Britannia when they got rid of their 737-200’s as the 757 was deemed to be to big for the route.

[LTNman]

So the big question is where will they base their UK low cost operation?
Their home base has got to be top of the list but over the years they have cut back at Luton big time. As with most charter airlines they seem to have a love affair with Gatwick and Manchester. Anyone like to have a guess?
:confused: :confused:

[VIKING9]

I should think LTN will be running out of ramp space soon, especially if NOW gets going as planned. Mind you, I would think possibly some of their aircraft will be night-stopping overseas.
As seen in another thread, maybe CVT could be a likely base for BY Express :confused: