JUSTIN WASTNAGE / BRUSSELS
New approach would integrate low-fare point-to-point services with long-haul networks
Several mainline European airlines are working on a "third way" business model that would enable them to connect low-fare point-to-point flights with existing long-haul networks.
Ulrich Schulte-Strathaus, secretary general of the Association of European Airlines (AEA), speaking at last week's meeting of the European Aviation Club in Brussels, said the association's 30 member airlines are studying how to combine the two concepts.
Schulte-Strathaus believes all AEA network carriers are likely to follow Aer Lingus and British Airways in introducing one-way fare structures, and that these are likely to be combined with "transparent service charges for network benefits". Separate charges for interlining and ground handling would result in lower point-to-point fares as passengers would not pay for interlining services they did not use.
How far advanced the studies are depends on the degree of penetration by low-cost carriers in their home market. Irish flag carrier Aer Lingus, which has seen its onward Oneworld alliance connections from London Heathrow Airport affected by severe competition from low-cost carriers operating from its Dublin base, has taken Ryanair as a benchmark and is likely to be the first airline to unveil plans for a hybrid service.
However, Eva-Karin Dahl, director of the Scandinavian Lite low-fares carrier project for SAS, says the new airline, which is to be launched and branded on 30 March, has no plans to offer interline connectivity with SAS mainline services. Scandinavian Lite has renegotiated its pilot and cabin crew contracts as part of wider cost savings that should ensure profitability at an average return fare of SKr2,000 ($235) compared with around SKr6,000 for SAS mainline, says Dahl.
The new carrier will operate a fleet of four of SAS's 51 Boeing Next Generation 737s. Dahl says it has no plans to link in with the business network in the near future.
"If you enter a situation where you offer network connections, then you are dependent on a whole other infrastructure, which will obviously raise costs, and to cover those costs you have to raise fare levels," she adds.
Source: Flight International
