Can American Learn From British Airways

FA Mikey

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Aug 19, 2002
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learning from British Airways


"A robust international network is always going to be a differentiator for us," said Craig Kreeger, vice president of the Europe and Pacific divisions at American.

The carrier is adding two more routes to Japan next year and has high hopes to win permission to fly to Shanghai from Chicago.

American has enjoyed its success in flying a 757 from Boston to Manchester, England, by selling the whole plane as coach seats, though the aircraft keeps a first-class cabin.

More routes are likely next year using the 757s from the Northeast to the United Kingdom, he said.
 
LHR is a unique airport, the home of many firsts and the top of the charts. It was home to Concorde, the first Pan AM 747 service, the first UA 777 service and will have the first A380 service. Its yield is among the highest in the world, thus its terminal have many "arrivals" lounges as well as the First/Club lounges. Many passengers flying have premuim cabin tickets for thousands of dollars & Pounds. The main reason BA is so profitable is LHR and the yield, the second reason is the politics of slots. From the Usa only UA & AA can get in.

Virgin had to suffer for years at LGW, it took Pan Am selling to UA and the repeal of an awful pre-Thatcher Labor govermment law ruling all post 1977 new service to London had to go to LGW for Virgin and new airlines to move service to LHR. The US-UK bermuda 2 treaty is another charm the Labor government of that era left for BA's benefit. Since only "TWO" airlines from each side can fly from LHR to the USA, BMI has service only from Manchester. The USA should renounce the Bermuda II, a relic of Socialist Labor Governments of the UK, for the benefit of BMI, Virgin, Cal, Delta, and BA itself. That is Capitalism the Tories would be proud of, especially since BA has given political contributions only to the Conservative Party.
 
Note that Heathrow has more than just transatlantic flights, and a huge queue of airlines waiting for slots.

Getting rid of Bermuda II would help BMI, who could switch flights from other destinations to USA. It wouldn't help DAL/CAL etc so much, as they would have to fork out to buy the slots. Not cheap.

It isn't the politics of slots, it is that there are very few left (and none at decent times) Unlike US airports, BAA just doesn't let 15 airlines all schedule a flight at 08:00...
 
The demand for slots at LHR from 0500 to 0900 is the most expensive piece of airport real estate in the world. Not only is it all the north ameican flights, and those from the east coast in particular, but from Africa and Australasia. All the South African flights arrive at Dawn, HKG, KUL, BKK, SIN, Australia and a few others. When you look at those by foreign intercontinental airline its a who's who: Cathay, Singapore, Malaysia, Thai, Qantas, South African Airways, UA, AA, & Virgin and BA. Its an expensive club to join, but if Delta ever got JFK-LHR it would have to pony up, it would also help if it found a few more 777's.
 
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Interesting that AA has more europe planned for next year oon the 757 from the NE.
 
LGA Fleet Service said:
I'm still wondering why JFK-GVA hasnt been fired up yet,with Swiss turning idle circles it seems the perfect opportunity,as well as JFK-MXP and year 'round JFK-FCO.
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GVA's a lot like TXL, in that it's a political destination for the Swiss. Aside from some UN generated traffic, it's just not a huge business market, and an even worse tourist market. All the serious traffic is to ZRH.
 
Recently there seems to be an appetite for every secondary European city that can fill a 757 from New York. I just wonder if that is sound business, to the UK secondary airports it works. I think the best avenue for limited service is the 737 BBJ with 40 club seats.
 

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