View Full Version : Can bizjets ultimately replace business class?
The current massive growth of low-cost "no frills" airlines shows that the general flying public are more concerned with price than anything else.
As British Airways seems to be winding down short-haul routes by the day, the business-class passenger who is willing to pay a business-class fare is being left with fewer and fewer options.
As both BA and Virgin have abandoned plans to operate bizjets, are the UK's established bizjet charter operators well positioned to capture the market?
What d'ya reckon??
Flip Flop Flyer
29th Jan 2002, 11:57
In as far as the world business travelling market does not rely solely on neither the UK nor BA, it seems a bit far fetched to suggest that BA cutting down on any number of flights should have a profound affect on the business jet market. And although there is plenty of interest in business jets, the finance is not readily available at the moment.
Appreciate your comments regarding non-UK airlines, but I'm thinking particularly of the European short haul market. The current position of the Air France/Aer Lingus/Swissair - type airlines would suggest that they are likely to cut back short haul services to the UK and Ryanair's claim that they will be 'the biggest European operator' suggests an overall move towards the 'no frills' market becoming more like the only choice for airline passengers.
I appreciate that there will always be business-class fares available, but I imagine that more and more business-class passengers will turn to business jets.
Regarding cost, a charter is obviously more viable when a group of passengers travel together - maybe even less than the combined total of business-class fares.
5711N0205W
29th Jan 2002, 16:30
Most business in Europe anyway want fully flexible tickets to accomodate last minute changes of schedule. I doubt a BJ operator will be able to offer this flexibility.
Provided the operator has a large enough fleet, surely the ticket is as flexible as it can get...
... the aircraft schedule is dictated by the client, not by a timetable
khiasanth
29th Jan 2002, 21:24
Just as a matter of interest, what would be the fares involved, say, LHR to JFK? At present Business Class costs around $2500 - $6000 Depending on carrier, right. Surely Bizjet costs would be well over $10,000, if so, how many people/companies will put up with that?
Daifly
30th Jan 2002, 01:42
An interesting topic, TFFIBJ.
It would be nice to think that business jets would eventually be the only way for business execs to travel! I wouldn't put money on it though!
When the economy slows down the first thing to go is the business jet travel. The people who are really flush (really big businesspeople, pop and film stars (though not Enron)) are generally not *that* affected by any global slowdown, whereas those who have to answer to shareholders and senior managers are invariably restricted as Business Jets aren't seen as a business tool - just a "perk".
There is a good argument that Business Jets have an element of "perk" about them, when you consider the prices involved in aircraft charter it does only ever become cheaper than scheduled flying if you have 8 or 10 passengers. Any less than that and it is not a great economic saving. The majority of Business Jet flights operate with only one or two passengers. There are "Roadshows" which companies run which go all around the houses, however they are rare (and moreso since the 11th).
What you suggest, that of having Business Jets where you can buy a single seat, has been tried before in the States (I think it was something like JFK-DCA-MCO), but the scheme died a death not very long into its life. Even empty leg schemes aren't that successful, and you're still having to pay for the whole aircraft.
I watched, before September, with interest the Blue Fox startup at STN mainly, being a cynical ******, to see if it worked. Sadly it seems that it won't happen in the near future. I think we all had our views about whether that would work too.
"No frills" are very busy, but where do you think that traffic is coming from? Yes, the cheap fares have introduced flying to people who otherwise would have driven/trained or "bussed", but the vast majority of it is business travellers who can find a cheaper deal. Although I'm fortunate not to have to travel out of the city very often, I would imagine getting to STN or LTN is no real difference to getting to LHR or LGW in time terms, so the cost saving is very difficult to argue against.
We've all known that the airline industry was overcapacity for a long time and there is a feeling that the 11th is being used as an excuse (I hark back again to the BA LHR-BFS route drop) to get rid of routes that haven't been making money. No matter what the airlines are playing at, the yield managers are not going to axe profitable routes.
Give it some time and the routes are going to start to increase again.
Look at the last six months in the UK. Flexjet have closed their operation, Chauffair have gone under (albeit that there may be other reasons involved), charter brokers downsizing. Not exactly what was expected after the 11th. But then a good proportion of the UK charter industry came from America, and they're not travelling, or if they are they're bringing their own aircraft over here.
I know that's a bit rambling, but what I'm trying to say is that those who can afford to fly in business jets always could and those that can't afford to fly in them have to use the airline services that are in place.
In answer to the LHR-JFK price, it's got to be something in the region of £50k for a non-stop trip (one way). Not too many companies would pay that for the MD - never mind the Managers!