OpenSkies changes course again and axes economy option

Jemima Bokaie, Marketing, Tuesday, 05 August 2008, 8:45am,

LONDON - British Airways is to drop economy seating on its transatlantic offshoot airline, OpenSkies, as it seeks to capitalise on the demise of a raft of business-class-only rivals.

OpenSkies changes course again and axes economy option

BA originally said the subsidiary, named after the EU-US agreement that made its service possible, would be a dual-class airline targeting business-class passengers. It then changed its offering to three cabins, containing 24 business-class flat-beds, 28 premium-economy recliners and 30 economy seats.

Now the UK flag-carrier plans to return to its original concept to capitalise on the gap left by the closure of business-class airlines Silverjet, Maxjet and Eos.

BA will reconfigure its Boeing 757 aircraft to contain two cabins with 24 business-class flat beds and an enlarged 40-seat premium-economy cabin called Prem+.

The change will come into effect on 1 October on the airline's Paris-New York route. The carrier will also use this configuration on its Amsterdam-New York service, which launches on 15 October. BA is considering extending the service to Brussels, Barcelona, Frankfurt and Milan.

Business travel has become a key battleground for airlines, even low-cost carriers are stepping up investment in the area to capitalise on businesses cutting costs.

European airline Flybe, the only budget carrier to offer a business-class service, plans to invest £2m this year in business products.

These will include dedicated lounges, more self-service check-in kiosks and mobile phone check-in services.

Nearly 50% of Flybe's passengers are business travellers, compared with 20%-25% for both easyJet and Ryanair.

The latter is considering the introduction of a hand-luggage- only rule on some of its morning and midweek departures, which carry a higher proportion of business travellers, as it seeks to reduce its costs.

Flybe, in which BA has a 15% stake, will back its focus on business travellers with a £10m marketing spend this year - 70% on press and outdoor, and 30% on digital. A £1.5m autumn campaign will promote its fresh offering.

Flybe is currently reviewing its ad account, which is handled by Souk Communications.

Data file: Business travel

  • 54% of small firms claim to have changed their approach to travel over environmental concerns.
  • 30% of firms use confer-ence calls to cut down on face-to-face meetings.
  • 25% use rail services wherever possible.
  • In finance, 82% of owners and managers have rolled out an environmental policy for business travel.
  • Source: Bibby Financial Services

 

This article was first published on Marketing

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