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unmanned transport
7th Oct 2005, 03:37
By Ben Webster, Transport Correspondent.
6 Oct. 05.

BRITISH AIRWAYS faces a twin-pronged challenge in its most profitable market from two new airlines that are launching business class-only flights between London and New York.
Eos yesterday brought forward its launch date to October 18 in an attempt to steal a march on the fellow start-up airline MAXjet, which is launching on November 2.

Both the new airlines will operate from Stansted Airport in Essex to the John F. Kennedy Airport in New York.

They will initially have a combined daily seat capacity of 150 compared with BA’s 600 business seats on its ten daily flights between London and New York. But both newcomers plan to launch a second daily service early in the new year, doubling their capacity to 300 seats.

Eos aims to mimic the corporate jet experience, offering only 48 seats that recline into flat beds on a Boeing 757, which normally carries 180.

MAXjet claims to be the first low-cost business airline, with 102 seats having double the legroom of economy class at about the same price as a full-fare economy ticket.

Both airlines are well-financed, unlike a series of other putative business-only airlines in recent years which announced ambitious plans but collapsed before launching flights.

David Spurlock, the founder and chief executive of Eos, is an American who was formerly director of strategy at British Airways. While at BA, he persuaded the airline to focus more on the premium passenger.

He has raised $87 million from investors, including Sutter Hill Ventures of Silicon Valley, Golden Gate Capital of San Francisco, and Maveron, the venture fund founded by Starbucks chairman Howard Schultz.

MAXjet has received $40 million from ten wealthy Americans, including Ken Woolley who helped launch JetBlue, the US budget airline.

Gary Rogliano, MAXjet’s chief executive, said he expected a substantial proportion of passengers to transfer to and from Stansted’s two main budget airlines, Ryanair and easyJet. Stansted serves 140 destinations in Britain and Europe and is London’s fastest-growing airport. “Because we are all business, our customers will not have to wait for 300 economy passengers to board,” he said.

“It should be a lot faster through passport control than Heathrow.”

MAXjet has spent $10 million buying and fitting out an ex-Qantas 21-year-old Boeing 767.

It has paid deposits on another two second-hand aircraft which it says will be delivered before Christmas. It aims to have five aircraft by March and eleven by the end of next year.

It plans to make Washington Dulles its second destination from Stansted early next year, followed by direct flights to the American west coast.

Mr Rogliano said he had begun negotiations with Airbus and Boeing about ordering a fleet of new aircraft for delivery in 2008.

FLIGHT PATTERN

Eos
Fare (London to New York): £2,550-£3,550
Number of aircraft: one
Boeing 757
Number of seats: 48
Seat size: 78in flatbed
Extras: cashmere blankets and personal DVD players

MAXjet
Fare: £680-£1,080
Number of aircraft: one Boeing 767
Number of seats: 102 Seat size: 60in recliner
Extras: movies on demaned


BA
Fare: £2,000-£4,300
Number of aircraft: ten Boeing 747 or 777
Number of seats: 350
Seat size: 72in flatbed
Extras: pre-flight meals on night flights

This just comes to show how BA. thrives under the umbrella of the British government while it rips off business travelers. If there was no Bermuda II, any British new entrant would be able to offer LHR-JFK flights with affordable business fares. Given that possibility, BA. would offer more affordable business class service instead of charging 4200 USD for LHR-JFK each way. That\'s well past the 3300 USD AF charges for JFK-CDG and the 3200 USD LH charges for JFK-FRA.

Jordan D
7th Oct 2005, 08:30
You notice how the BA lowest fair is still lowest than the lowest Eos fair?

Jordan

Globaliser
7th Oct 2005, 11:14
Jordan D: You notice how the BA lowest fair is still lowest than the lowest Eos fair?And Confucius say: Man who think all BA J pax pay published fare, never heard of corporate discount.

GOLF-INDIA BRAVO
7th Oct 2005, 11:52
Globaliser
Yes quite true the bigger the corportae used the bigger the discount
I used to work in Business travel and we had a number of quite significant deals
with BA

G-I-B

DDF
7th Oct 2005, 14:50
If your aircraft goes teck BA have the support and back up aircraft to get you to the destanation the other two will leave you in a nice Stansted Hotel for the time it takes to get it fixed or charter in a "normal 757/767"...

WHBM
7th Oct 2005, 15:09
This just comes to show how BA. thrives under the umbrella of the British government while it rips off business travelers.
I am wondering why you pick on BA as if they were a monopolistic supplier on London to New York. Are you not aware that it is a highly competitive route, with Virgin Atlantic, American, United and Continental, and several 5th freedom carriers also operating. Why leave them out of this discussion ? If BA's business fares are so unreasonable, why don't they clean up ? And if BA and Virgin can fill 747s, why can none of the US carriers fill such large aircraft ?

If there was no Bermuda II, any British new entrant would be able to offer LHR-JFK flights with affordable business fares
Not at all. There are no runway slots available at Heathrow for such services. It is full. And we certainly do not see why less-profitable UK routes such as Newcastle or Belfast should be dumped from Heathrow, depriving those areas of the UK of service to the major UK airport, just so another airline can become the 10th "me too" carrier on the already well served New York route. If there were to be slots available, well maybe the UK would prefer to use them for new routes to hitherto unserved places like the CIS republics which currently have no service at all.

rhythm method
7th Oct 2005, 16:37
Unfortunately, BA dumped Belfast very quickly in the post Sept 11th re-shuffle, and have left BMI to clean up unchallenged on the route.

:hmm:

Jordan D
7th Oct 2005, 17:48
Globaliser - I realise that not all J or F class pax pay the printed fair, especially when they are flying for big Multi-nationals ... I know this because my mum works for a Multi-national and never pays the printed.

Jordan

Globaliser
7th Oct 2005, 17:56
I certainly wasn't disagreeing with you, merely adding an additional point.

People (eg journos) who think that EOS and Maxjet will suceed simply because their published fares are cheaper are living in cloud cuckoo land. If they succeed, their published fare levels will be only one reason out of many that all combine together.

WHBM
7th Oct 2005, 22:49
Unfortunately, BA dumped Belfast very quickly in the post Sept 11th re-shuffle, and have left BMI to clean up unchallenged on the route.
Alas a myth. All established carriers on London to Belfast (including FlyBe from Gatwick) have been trounced by EasyJet, who now dominate the route from 3 London airports. BA got out, BMI moved Belfast airports to try and differentiate themselves, FlyBe have halved frequency. Quite the contrary to cleaning up, BMI make very little on this one any more. Seems the route doesn't have the business traffic of GLA or EDI.

unmanned transport
8th Oct 2005, 00:29
Why do I pick on BA?

Because they think that they are God's gift to the world including many of their snobby employees and many here on the Prune. Wake up to the real world, there are many carriers out there every bit as good and better in some ways.

Carnage Matey!
8th Oct 2005, 09:32
Why do I pick on BA?

Because they think that they are God's gift to the world including many of their snobby employees and many here on the Prune

Now theres a balanced, reasonable response for you. I offer another suggestion. It's because you're a nutter. By the the way, there are two P's in Pprune.

spanishflea
8th Oct 2005, 09:37
Quite the contrary to cleaning up, BMI make very little on this one any more. Seems the route doesn't have the business traffic of GLA or EDI.

Although it was one of only 5 routes to retain its business class service because of the demand. Every occasion I know of where a regular Diamond Club Gold member has tried to use an upgrade voucher for a friend or relative has failed as the cabin was full!

flyer55
8th Oct 2005, 13:26
Has anybody else heard that BA might be doing LGW - JFK or EWK daily?