THE BUSINESS TRAVEL MAGAZINE I 39 The Review ➔ Buyers cool on alliances
A HANDFUL of sceptical buyers listened to the argument in favour of airline alliances from speaker Bob Schumacher, managing director of sales UK & Ireland, United Airlines, at an ITM Buyer Breakfast Forum in January, sponsored by Star Alliance. Looking at how best to work effectively with an airline alliance, the value and size of alliance networks, contracting and product development, buyers’ concerns centred around the issue of alliances stifling competition and the lack of financial benefits. Schumacher explained that airlines had little choice but to join together in order to become more efficient. “It’s not a particularly comfortable place, as each airline wants independence, but we have inter-dependence at different levels,” he said. Deregulation may have rid the industry of many protected national airlines and monopolies, he explained, but bilateral partner- ships and codeshares took their place as airlines hit regulatory walls over joint ownership. Governments worried about foreigners running carriers, particularly in a time of war, limit airline purchases while hiding behind anti-trust concerns.
IN THE AIR IN BRIEF
• KOREAN Air is set to launch flights from London Gatwick to Seoul at the end of April, further boosting the airport’s connections with Asia. The new three-times-weekly service is in addition to the carrier’s daily service from Heathrow.
• MANX2 will launch daily services from Oxford Airport to both Jersey and the Isle of Man this May. Single fares start from £49.95.
“While the rest of the world’s industry was joining up globally, the airlines couldn’t. Aside from the politics, there was no capital for mergers and we are held back by slot restrictions too. It’s an alliance of convenience given all these factors,” explained Schumacher. It was no surprise to learn from buyers of their frustration at not being able to achieve a better consolidated deal than individual deals, and also by having no single point of alliance contact during negotiations. The consensus was that buyers must be realistic about expectations as discounts were available, but usually only on the
SERVISAIR'S ASPIRATIONAL LOUNGES
less important parts of the volume. “It’s about supply and demand,”
said Schumacher. “The alliance member would ask: ’Where do we need new business?’, as everything has to be approved by head office. We would walk away from a deal if the volumes weren’t there. We are looking for a mutual back scratch.” ITM CEO Simone Buckley voiced everyone’s frustration at there not being such a body as an alliance account management team. “It all comes back to ownership issues as to how far this marriage can go,” said Schumacher, but he agreed that having such teams in place would be a step forward.
QATAR GOES PREMIUM AT T4
SERVISAIR is introducing a new concept in airport lounges at some of its top UK sites, beginning with its Gatwick North location. A complete rebrand and refit
was completed in February with the new-look Aspire lounge featuring a menu of complemen- tary meals, snacks and drinks, plus free wifi access. The new style lounges feature a series of zones – including a business zone
– while general design and the overall new look is said to be ‘both visually impactful and chic’. Entry from £17.49 per visit. “Our mission is to operate airport lounges that deliver the best possible customer experience, a smooth booking procedure, a comfortable and modern environ- ment, and fantastic facilities at a reasonable cost,” says Servisair's Shaun Weston.
QATAR Airways has opened a new premium lounge at London Heathrow’s Terminal 4, the airline’s first dedicated facility for business and first class passengers beyond its Doha hub. The new facility has been designed to be more like a private member’s club than an airport lounge, and features the Global Brasserie kitchen, the Delicatessen and a Martini bar. There are also private shower rooms, wifi internet access and a business centre. The Middle Eastern carrier
is also adding capacity on its popular London to Doha operation, increasing the service from four to five flights a day from March 25th.
• AIR Asia X has axed its services to London, India and France. The carrier, which switched its London services from Stansted to Gatwick Airport last October, said the last departure from the capital will be on March 31st. It blames the cuts on high fuel prices, weakening demand from Europe and exorbitant government taxes.
• RYANAIR claims it will create over 1,000 new jobs in 2012 as its fleet grows from 270 to 305 aircraft, primarily through the launch of five new hubs in Manchester, Billund (Denmark), Wroclaw (Poland), Palma (Spain) and Paphos (Cyprus).
• FLYBE has announced six new services this summer, taking its network to 208 routes. They are Newcastle to Bergen (Norway) and Newquay; Belfast City to Newquay; Birmingham to Waterford (Ireland); Leeds Bradford to Knock; and Southampton to Tours (France). One-way fares start from £26.99.
• EMIRATES has announced plans to launch a second daily flight from Glasgow to Dubai in June, plus the introduction of a first class cabin on the route for the first time.
• TURKISH Airlines is increasing its Birmingham-Istanbul operation to a daily service from March 25th. The airline says there has been an increase in business travellers on the route over the last year and in passengers connecting to the airline’s onward network from Istanbul.
• AIR Berlin, Europe’s sixth largest carrier, becomes a full member of the oneworld airline alliance as of March 20th. It will add nearly 70 destinations to the oneworld network, taking its coverage to some 840 cities.
• SLOVENIA'S national carrier, Adria Airways – a Star Alliance member – will launch a four-times- weekly operation from London Luton Airport to Ljubljana from March 25th.
• AMERICAN Airlines adds a fourth daily flight between London Heathrow and Dallas/Fort Worth from mid June. The new flight will operate every day except Thursdays.
40 I THE BUSINESS TRAVEL MAGAZINE
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