British Airways is expected to finalise plans before the end of the year to launch a European low-fare operation at London Stansted, using Boeing 737-300s. At the same time, the airline has begun an interim replacement of its BA Regional 737-200s.
Earlier this year, BA commissioned the UK-based consultancy Howell Henry Caldecott and Lewry (HHCL) to undertake a study into the recent emergence of European low-cost airlines, such as London Luton-based easyJet and Debonair, and Ryanair which operates from London Stansted.
BA said then that no decision would be taken until the consultancy work was complete. Its official line is that a final decision has still to be made pending HHCL's formal conclusions. It is understood that the final report is imminent.
BA is believed to be seeking seeking an initial fleet of four 737-300s, to enable the operation to be launched in April 1998 with services from Stansted to Amsterdam, Madrid and Paris. BA has yet to decide on a name for the operation, which will use one-class cabins and will not offer an in-flight meal service. BA is thought to be seeking a total of six used 737-300s for the service, with the second batch of two arriving in late 1998.
Low-cost carrier easyJet, which BA considered buying this year, has warned that the planned low-fare spin-off would be anti-competitive and has threatened legal action if it goes ahead.
BA, meanwhile, will begin replacing its 33-strong Boeing 737-200Adv fleet in December. These are operated by the airline's Manchester and Birmingham-based "BA Regional" division, along with seven new Boeing 737-300s.
The airline's entire 737-200 fleet has been sold and leased back some time ago to various lessors including General Electric Capital/ Polaris Aircraft Leasing (managed by GE Capital Aviation Services (GECAS)) and Boullioun Aviation Services. BA has arranged to return six 737-200 Advs to GECAS as their leases expire, with the first two leaving the fleet in November, and the other four between February and November 1998. All six will be leased to LAN Chile.
BA will receive the new 737-300s between December and mid-1998 on lease from GECAS (four aircraft) and Boullioun (three aircraft). BA says that the acquisition is an interim move to reduce charges for its Chapter 2 737-200s at noise-sensitive airports, will it finalises its long-term fleet strategy.
Source: Flight International
