In sharp contrast to the wave of low-cost startups sweeping through Europe, a Paris-based carrier is set to start Europe's first dedicated business class service.
Fairlines is to start scheduled business services this November from Paris/Charles de Gaulle to Nice and Rome/Fiumicino using 70-seater MD-81s. The aircraft will be equipped with onboard business services such as interactive computer systems, faxes, telephones and a lounge area.
Expansion is envisaged at a rate of two European destinations and two MD-80s per year, says president and majority shareholder François Arpels. The business plan envisages the airline reaching profitability within 18 months - the carrier's startup capital is some US$13 million.
Rejecting the rush to jump on the no-frills bandwagon in Europe, Arpels believes that it is impossible to replicate the US low-cost model in Europe. 'Operating costs in Europe are much higher and the infrastructure is different,' he argues. The concept of targeting business passengers instead rests on Arpels' recognition that a small player needs to be a niche player: 'If you enter the general market, you're killed off by the likes of British Airways or Air France,' he says.
And Air France appears to have little to fear from this startup. Arpels claims he wants to avoid a fare war with the flag carrier and says he will charge an average of FFr2,200 (US$362) for a roundtrip fare on Paris-Nice, yet Air France's unrestricted business class fare on the route is FFr3,260. Instead of competing with Air France, Arpels hopes eventually to 'complement [its] Charles de Gaulle hub.'
Lois Jones
Source: Airline Business
