p14 BTM June26 23/6/09 17:56 Page 14
news conference report
ttglive.com
Business Travel Market
June 17-18, 2009
Trade Media Partner
■ ExCeL, London
More than 2,000 delegates, including some
FLIGHT TRENDS.
of Europe’s most high-profile travel buyers,
BMI claims a boost from
attended the inaugural Business Travel Market
corporate belt-tightening
in London last week. Martin Ferguson reports BMI CLAIMS to have mitigated the impact of the
credit crunch by attracting business travellers
BA ‘reviews’ Open Skies
who would previously have been attracted by
incentive schemes on flag-carriers.
Sales and marketing director Katherine
Gershon claimed BMI was benefiting from the
“price-driven market”.
BRITISH AIRWAYS’ all-business-class subsidiary, BA has been haemorrhaging money since the She said the choice of airline during boom
Open Skies, has seen its passenger numbers transatlantic premium-class market collapsed in times was often swayed by frequent-flyer
ravaged by the recession. late 2008, and has been forced to review all schemes, but that as corporate travel policies
Carryings in April on the airline’s Amsterdam- areas of its business to cut costs. tightened, the lure of incentive points had been
New York route were down 45% year-on-year, But Moss insisted Open Skies would replaced by a demand for the cheapest fare.
while its Paris-New York link was down 39%. continue to operate and survive for the She said BMI had seen an overall increase in
Open Skies managing director Dale Moss, remainder of the recession. passengers travelling on business but there
revealing the figures at Business Travel “We are not on the business plan we was a huge trend towards the cheapest economy
Market, said the situation was slowly set, but we are not far off,” he tickets on flights of up to four hours.
improving but he had no idea when said. “We’re about nine months The airline’s strength lay in its services to the
there would be a full recovery. behind where we would have Middle East and the CIS states (former Soviet
His comments were followed by like to be at this stage.” republics), destinations that were not linked to
speculation that BA was ready to He bemoaned the collapse the western banking economy, said Gershon.
sell Open Skies or wind it up. of major US investment Passenger numbers on these routes were up
The airline was launched last banks as a major 10% as the Middle East – outside Iran – entered
year after BA acquired French stumbling-block for the a period of stability following president Obama’s
airline L’Avion for £54 million. airline, but said the business election in the US. The stability encouraged
Its name reflects the signing of the was “doing OK”. Middle Eastern immigrants in the UK to travel to
Open Skies treaty between the EU and A BA spokesman said: “Every visit friends and relatives.
the US, which allows carriers to fly to part of our business is under
the US from any European country, not review in these difficult and
just their country of origin. challenging times.”
INDIA.
Kingfisher makes UK nest
KEYNOTE SPEAKER..
KINGFISHER Airlines has agreed partnership
Lamont opposes any bail-out for BA
deals with three travel management companies
and two consortia as it bids to step up its
presence in the UK market.
A TORY peer has advised But the former chancellor, who lead the The Indian airline announced the deals, which
governments not to bail out Treasury when the UK entered recession in the give agents access to negotiated rates, at
ailing airlines, warning that to early 1990s, said politicians had already borrowed Business Travel Market.
do so would stifle competition. too much money to stimulate failing banks. Initial agreements have been drawn up with
Norman Lamont, speaking “The state should not give aid to airlines. I’d Guild of Travel Management Companies mem-
to delegates at the inaugural like to see the market work properly for the bers Ian Allen Travel, HRG and Reed &
Business Travel Market, made the remarks after benefit of consumers,” said Lord Lamont. Mackay.
British Airways admitted it was fighting for His views were backed this week by Richard The Advantage Focus Partnership
survival. Some economists have suggested the Branson, who said the government should not aid and Uniglobe British Isles
UK government would be forced to intervene if BA, which lost £401 million last year. He said Vir- consortia have also signed
BA’s financial situation deteriorated any further. gin was primed to pick up BA slots at Heathrow. with the airline.
14 26.06.2009
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