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Home / Business / Companies / Airlines

BA taps into lucrative Atlantic market

By James Daley
NZ Herald·
21 May, 2007 05:00 PM2 mins to read

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KEY POINTS:

British Airways is to launch a new service from continental Europe to the US, without economy class seating, in a bid to steal a greater share of the lucrative business market from its European rivals.

The flights, to be launched in the Northern Hemisphere summer, will comprise mainly
first and business class seats, and may also include some premium economy seating. The routes are expected to connect New York to several of Europe's major business cities.

The move, which will put BA head-to-head against the likes of Air France and Lufthansa, is part of a plan to take advantage of the new Open Skies agreement between the US and EU at the earliest opportunity.

Chairman Martin Broughton said BA had seen "some weakness in non-premium segments".

However, the company said the premium market was still strong, with good potential for more growth.

Chief executive Willie Walsh said BA had applied to the US Department of Transport for licences to fly between the US and any destination in mainland Europe, in order "to grow the most profitable part of our business".

The all-premium flights will not be available from the UK, and will represent BA's first attempt to operate long-haul flights out of foreign territory.

A spokesman for the company said that the airline had decided to focus on the market in continental Europe as it believed it was already well covered between the US and UK in premium and non-premium markets. He said BA already operated some 280 flights to the US.

It is believed that BA plans to refurbish a handful of its smaller Boeing 757 or 767 planes for the new service.

A handful of airlines offering all-premium seating have launched over the last couple of years, including Maxjet, Silverjet and Eos.

Maxjet is currently planning an initial public offering on the Alternative Investment Market, to raise funds to expand its business.

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