Blue Fox, a new all-business start-up on the London-New York route, plans to launch next March, confident of heading off any economic downturn. However, it may also have to contend with another new start-up on the route if Newlines Airlines wins funding.
Blue Fox plans to operate Boeing 767-300ERs between London Stansted and JFK. Chief executive Derek Jewson is confident that the venture will be able to withstand any downturn, pointing to the robustness of the New York route even in times of crisis such as the Gulf War in 1991. The airline's business plan sees it starting to turn a profit three years after launch, with a 50% break-even load factor.
Financing is still to be finalised, although Jewson says he is encouraged by the interest being shown. Funding could come from institutional investors, a public offering, or even a single source. Around £65 million ($100 million) is being sought.
Blue Fox is not alone. Another start-up, provisionally known as Newlines Airways, is also seeking funding for a similar project. Jewson acknowledges that there is probably only room for one operator on the route. The main difference between the two is aircraft. Blue Fox's 767-300ERs will have 138 seats in a 2-2-2 configuration, while Newlines plans to operate 80-seat 757-200s.
Newlines has cast doubt on the wisdom of operating an aircraft of the size of a 767. However, Jewson argues that only the 767 is a "true wide body". He is also confident that the £1,200 return fare to the east coast will be below that of his potential competitor. Continental Airways launched a Stansted-Newark service in May, although Jewson believes that this will cater for a different type of market.
The choice of Stansted is purely down to the restrictive US-UK bilateral agreement, which prevents new carriers launching services from Heathrow but allows them at Gatwick and Stansted, Jewson points out that Stansted does not suffer from the same level of congestion problems as the other London gateways. Blue Fox is in discussions with JFK on possible slots.
At Stansted, Blue Fox will utilise Metro Aviation's terminal, which is usually used by Middle Eastern royalty on trips to London.
Jewson hopes to attract passengers through innovation, including a DVD player with library in every seat and tapas-style food cooked by an on-board chef. Other options being considered include lectures and wine tasting. Blue Fox is looking to attract both business passengers and tour groups.
The carrier plans to launch services to Washington and Boston nine months after the New York launch, with Los Angeles and San Francisco following nine months after that. The West Coast fare will be £1,600.
Source: Airline Business
