(01-09) 10:13 PST NEW YORK, (AP) --
British Airways plans to launch a new airline in June that will offer
direct service between New York and the European mainland, catering mainly
to business and affluent leisure travelers.
The new carrier, named "OpenSkies," will begin with service to either
Brussels or Paris using a single Boeing 757, British Airways said
Wednesday. The carrier plans to add a second aircraft to the other
destination later this year, and four more aircraft by the end of 2009.
The airline is aimed largely at business and well-heeled leisure
travelers. Only 30 of each plane's expected 82 seats — five rows in
the back of the plane — will be economy class. The rest will be
almost evenly split between business class and a new mid-priced level
known as "premium economy."
"We don't intend to be a mass-market type of vehicle," said Dale Moss,
British Airways' former director of worldwide sales, who will serve as the
new venture's managing director. "We're a very special point-to-point
application."
OpenSkies will draw on elements of British Airways' existing business,
from the Union Jack-themed logo on the planes' tails to the carrier's
sales force and frequent flier plan. It will also be able to take
advantage of its parent's fuel hedges, which will allow the new carrier to
lock in advantageous fuel prices.
The new airline takes its name from the Open Skies agreement hammered out
between the U.S. and the European Union last spring. The agreement allows
airlines to fly from anywhere in the Europe Union to the United States and
vice versa ; something they couldn't do in the past.
By launching a new carrier flying directly from the continent, British
Airways will be taking on not just established U.S. carriers such as UAL
Corp.'s United Airlines and AMR Corp.'s American Airlines, but also
European airlines such as Lufthansa and Air France-KLM. On the Paris
route, it will also compete against L'Avion, a new all-business class
carrier.
"Our competition will be formidable," Moss said.
OpenSkies is meant to complement British Airways' overall business, not
compete against it, Moss said.
But as a separate brand, OpenSkies will be able to serve as a "research
and development lab" for its parent that can try out new ideas and
implement ones that work quickly across its small fleet. It will also
operate under a separate cost structure, and possibly separate labor
contracts, from British Airways.
"We've got to use the entrepreneurial spirit of a small company &;
the hungriness, and a little bit of the fear ; that says 'hey
listen, if we're not successful, we don't exist,'" Moss said.
Moss said the airline is working on "some great ideas for pricing, not
just for promotional fares to start," but was unable to discuss ticketing
options without receiving approval from U.S. and U.K. regulators.
Jonathan Wallden, finance director for OpenSkies, said the airline expec=
ts
to confirm the details of the inaugural route by the middle of next month.
The carrier hopes to operate out of New York's John F. Kennedy
International airport, but may be forced to shift its operations across
the Hudson River to Newark Liberty International.
Other destinations on both sides of the Atlantic could be added later. In
Europe, Moss said OpenSkies is considering flying to Amsterdam, Frankfurt,
Madrid, Milan, Zurich and Geneva. Additional U.S. destinations could
include Boston, Washington and Philadelphia, he said. ---------------------=
--
Lansbury (Retired)
www.uk-air.net
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