Carry on: New budget carrier, speedier baggage checks and more
Business travel news also includes impact of cheap fares on travel agents, Delta's new premium economy new routes of the week.
Business travel news also includes impact of cheap fares on travel agents, Delta's new premium economy new routes of the week.
New budget carrier heads for Asia
Air France-KLM is planning a new medium-haul and long-haul budget airline that could service cities in Asia and the US. The unnamed airline is set to launch in Asia early next year with the US following later. The move is possible because of lower staffing costs and will help the full-service airline fight back against competition from discount carriers.
British Airways’ parent International Consolidated Airlines (IAG), Lufthansa and Air France-KLM already have their own short-haul budget subsidiaries to compete with the likes of Ryanair. But this will be the first time a European carrier targets typically more profitable medium and long-haul business with a cheaper offering of its own.
Screening pilot speeds baggage checks
Amsterdam’s Schiphol Airport is testing new screening machines that allow passengers to leave liquids and laptops in their luggage when passing through security. New software will give security staff a 360-degree view of the contents of each bag.
However, liquids will still need to be in 100ml containers and in a resealable bag of nor more than one litre in capacity. If successful, the pilot scheme will be introduced on all 67security lanes at Schiphol, one of Europe’s busiest airports.
Sweden gains US pre-clearance
Sweden will be the first country outside North America to have a pre-clearance facility that makes it easier to enter the US. It will be established at Stockholm’s Arlanda Airport after an agreement by both countries’ governments. Arlanda was one 10 airports in the world approved in 2015 for such a facility, which effectively sets up a US border control office.
More than 600,000 passengers travel directly between the US and Sweden each year out of a total of 1.1 million. It is hoped the new border clearance system will substantially boost direct travel for leisure purposes.
Travel agents feel fare drop squeeze
Air fares have become so competitive that travel agents are feeling the pinch of lower profits and overall sales.Australia-based Flight Centre recently indicated it will slash expected half-year profit for the first half of the 2017 financial year. While total transaction value growth is lower than normal, volumes are higher. An improved performance was expected in the second half.
In Australia, return flights to Europe have plunged to as low $A799 offered by Watar Airways from Adelaide. Flight Centre says international fare dropped on average 7% in the first half of 2016-17 after a fall of 4% in the second half of last year. Fares across the Pacific are also dropping, $A376 return economy tickets between Sydney and Honolulu flights as well as return trips to New York for less than $1000.
Delta adds premium economy
Delta Air Lines, one of the big three in the US, has unveiled new premium economy class seating for long-haul flights. Delta Premium is slated to debut in late 2017 with the airline’s Airbus A350s deliveries in 2017 and additions to its Boeing 777 fleet beginning in 2018. The new class will offer additional seat space, larger entertainment screens power ports at every seat. Passengers will also be eligible to receive a free drink, blankets, amenity kits and noise canceling headphones. The Delta Premium ticket will also help customers check-in faster, avoid long security lines, board their flights earlier and make baggage return faster.
Route news of the week
Singapore Airlines has postponed launching its Singapore-Jakarta- Sydney service because of the poor state of runways at Jakarta’s Soekarno-Hatta International Airport. The service was due to begin on November 23. It is not known when the repairs will be completed. United Airlines will cease its Newark-Belfast service On January8/9. The route, which is served by Boeing 757 aircraft, is the second to the UK to be cancelled within five months. The Newark-Newcastle service ceased in early September. Air Canada will resume a daily nonstop Vancouver-Frankfurt seasonal service on June 1, 2017, using Boeing 787-9 aircraft. It previously served this route in summer 1987, 1997 and 1998. Air Canada rouge will launch a three times weekly seasonal Vancounver-London Gatwick service on June 8. It will use a Boeing 767 aircraft. The airline’s Toronto-London Gatwick service will be revised from seven to four weekly. Skyteam member China Eastern has opened reservations for a planned additional Xi’An-Wuhan-Sydney operation from January 18 using Airbus A330-200 aircraft.