THE BUSINESS TRAVEL MAGAZINE I 39


 Another US airline merger... THE REVIEW ›› IN THE AIR


AMERICAN Airlines and US Airways finally confirmed details of a proposed merger in February, a move that sees it become the world's biggest airline. It takes that title from United, which merged with Continental in 2010. That move followed in the footsteps of Delta's purchase of Northwest Airlines in 2008 which set the ball rolling for airline consolidation in North America. The mergers have brought


stability to the market (AA has been restructuring under bank- ruptcy protection since 2011), plus better networks and connections, but critics argue that the fewer number of players means less competitive fares. The merged carriers will operate under the American Airlines name and will remain a oneworld alliance member. Headquartered in Dallas-Fort Worth, with a 'significant corporate and operational presence' in Phoenix, it will offer over 6,700 daily flights to 336 destinations in 56 countries.


Doug Parker, chairman and


CEO of US Airways, says, “The combined airline will have the scale, breadth and capabilities to compete more effectively and profitably in the global market- place. Our combined network will provide a significantly more attractive offering to customers, ensuring that we are always able to take them where they want to travel, when they want to go.” The merger, which is expected


to be approved by authorities and go through later in the year, has


BA ADDS NEW FARES FROM GATWICK


been criticised by the US-based Business Travel Coalition (BTC). A statement from BTC says:


“There is benefit in a financially viable air transportation system. However, previous mergers have already enabled seat capacity cuts, higher fares and billions of dollars in fees for ancillary services resulting in a financially strengthening industry. As such, consumer harms from this merger are exacerbated as there are no substantial countervailing consumer benefits.”


IN BRIEF


BTS NEWS


• UKRAINE International Airlines is increasing its London Gatwick


to Kiev operation from daily to double daily this June. From June 18 UIA will operate fl ights from Gatwick at 1220 and 0010, arriving at 1740 and 0530 respectively. Return fares start from £215 in economy and £545 in business class. The carrier’s onward network includes destinations throughout the Ukraine, Russia, CIS nations, Central Asia and the Middle East.


BTS NEWS


• AIR CHINA is introducing First class on its 777-300ER fi ghts


between London Heathrow and Beijing when it adds the new aircraft on May 15, which will also increase capacity by 74 seats daily. The 777 will offer a daily service from Heathrow with onward connections to 200 domestic cities and 50 international destinations. First class in the 777s will be an eight seat cabin confi gured 1-2-1 and will include a bar area. Air China offers a limo service to Heathrow and Gatwick for fi rst and business class passengers.


FINNAIR ADDS ASIA SERVICES


BTS NEWS


FINNAIR will become the only European


carrier flying into Xian, China, when it launches a three-times- a-week service on June 3. And because the service flies via Helsinki, it will take 12 hours. “Direct flights are expensive,”


BRITISH Airways has launched 'hand baggage only' fares from London Gatwick to selected destinations on its short-haul network, an option it plans to roll- out across its Gatwick network. The new fares vary by between


£9 and £15 cheaper than fares that include a piece of checked-in luggage, meaning one-way fares to Amsterdam and Turin now start from £39 and Jersey is from £45. Following easyJet's introduction


of allocated seating across its network, BA's new offering sees the two Gatwick rivals moving closer together in terms of their


product and fare options. British Airways' hand luggage allowance remains more generous, though, with one case permitted together with a handbag or laptop bag, and BA continues to offer a compli- mentary food and drink service. Peter Simpson, director of


Gatwick for British Airways, says, “Many British Airways customers on Gatwick short-haul breaks choose not to check in a bag as they’re already taking advantage of our generous two-bag hand luggage policy. Those who still want to check in a bag will simply pay the same price they do now.”


says Fredrik Charpentier, the airline's sales director Europe & West & North America. He believes corporates are now choosing flights based on time as well as cost. “Our hub is in the right place,” he says, adding that membership of oneworld is another argument for choosing Finnair on Asian routes as travellers can gain loyalty points from member airlines. On June 3 Finnair also launches services with the same frequency to Hanoi, taking its Asia network to 13 destinations. The airline offers fully flat


beds on its A330s and lie-flat seats on its A340 fleet.


• AIR CANADA is launching an Inter- national Premium Economy cabin as it takes delivery of new B777-300ER aircraft. The seats, in a 2-4-2 confi g- uration, are larger and wider than those in its economy cabins, and come with an additional seven inches legroom.


• AIR FRANCE has introduced low-cost air fares (from ¤49 including taxes) to 58 destinations on its short and medium-haul network. The 'Mini' fares do not earn Flying Blue miles or include checked baggage or online seat selection.


• MINOAN Air is launching new services from Oxford Airport to Edinburgh and Dublin this March. Initially operated twice a day on certain weekdays, frequencies on both routes will increase to twice daily Monday to Friday and once on Sundays from May 10th.


• CATHAY Pacifi c will add a fi fth daily return fl ight between London Heathrow and Hong Kong from June 27. The carrier will offer a mix of fi rst, business, premium economy and economy cabins across the fi ve fl ights. Cathay has also reopened its fl agship fi rst class lounge, The Wing, at Hong Kong International Airport following a refurbishment.


36 THE BUSINESS TRAVEL MAGAZINE


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