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In Praise of Service

Take a look at this link for a report on flying Virgin Atlantic.

Delta gets Heathrow slots

- How big a deal is this?

- It is a smart move for the slot sellers.

- Because they get cash now plus access to the US from Heathrow operated by Delta.

- British Airways' service to Atlanta is now much less compelling, while all airlines flying to New York will see a ratcheting up of competition.

More on Blackprogram

Could Lufthansa hit back at Virgin by flying London-New York?

Following the news last week that Virgin Atlantic Airways is hoping to take advantage of the upcoming, more liberal North Atlantic competitive environment fostered by the latest Open Skies deal due to come into effect in the Fall by introducing non-stop Frankfurt-New York services (as well as direct flights from Paris and Zürich to the US East Coast), is Germany’s Lufthansa the best-positioned to make a retaliatory move by offering Heathrow-Kennedy flights?

Currently only two airlines from the US, American and United, and two from the UK, British Airways and Virgin, are allowed to fly direct from Heathrow to the United States. But, never one to pass up a chance at a new market, Virgin is now making plans to exploit what it sees as the inevitable relaxation of North Atlantic regulations, irrespective of the outcome of talks in Washington, DC, between president Bush and UK prime minister Tony Blair tomorrow, Tuesday March 19th.

So where Virgin might dare to lead, who will follow? Single-country strategic market expansion is not the easiest of moves to implement at Air France-KLM, given the carrier’s twin nationalities (but if Virgin wanted to fly out of Paris and Amsterdam to New York, well…) while Swiss is still in the first consolidation phase of its five-year post-Swissair existence. That leaves Lufthansa, a mature international carrier with a lot of money and a reliable reputation, the latter just exactly what appeals most to business travelers on the North Atlantic.

Would Lufthansa risk cannibalizing its Frankfurt-US markets by offering direct flights out of London? Yes, but that’s only a small risk. It currently takes 12-13 hours to fly Lufthansa-New York via Frankfurt or Zürich (that’s going a long way the wrong way, of course) against 10 hours or so without the continental stop-over and eight or nine for BA to JFK from London direct. And time, as always, is money, beside the obvious marketing advantages of flying West out of London rather than East when headed for New York. Lufthansa no longer can offer its in-flight Internet as a cool feature to business travelers, either.

A renowned national airline such as Lufthansa flying out of London to New York would be a market asset and would help pave the way for further US carriers to move onto the route, Heathrow slots permitting.

And all because Virgin Atlantic is already thinking about spreading its wings…

Virgin Atlantic about to switch fleet direction?

Recent comments from Sir Richard about his concern with global warming are being interpreted by many as setting the stage for a big switch. His airline is reviewing both Airbus and Boeing plans for fleet renewal. But the talk of greenhouse gases from SRB are seen by some to indicate something more.

The airline is four engine dependent. Remember 4 engines 4 long haul? This was his little poke at big twins. How that must burn at >$60 oil prices. Virgin never made the switch to big twins like so many others. So rumors are swirling – with the talk around a renewal plan depending on GEnx powered Boeings. The decision is due near month end. The GEnx has the finest of green pedigrees and fits into GE's ecomagination.

Ever the media savvy fellow, SRB will wrap the deal in lots of "green" talk. Creating quite a lot of hot air in the process. Perish the thought SRB would admit to buying the wrong planes for the routes they have. It is very important to SRB to trump British Airways, which is also likely to go the Boeing/GEnx route on its next order. It will be a "greener than thou" thing. Sort of, save the planet by flying Virgin Atlantic. Willy Walsh's team could make a quick announcement but that is not BA's style. Unfortunately.

Either way, this means Boeing is likely to have a fat order for the 747i and 787 from the UK in the coming weeks. Of course the Virgin decision will not be because Boeing is clever, its about GE. Whatever.

Virgin Atlantic about to switch fleet direction?

Recent comments from Sir Richard about his concern with global warming are being interpreted by many as setting the stage for a big switch. His airline is reviewing both Airbus and Boeing plans for fleet renewal. But the talk of greenhouse gases from SRB are seen by some to indicate something more.

The airline is four engine dependent. Remember 4 engines 4 long haul? This was his little poke at big twins. How that must burn at >$60 oil prices. Virgin never made the switch to big twins like so many others. So rumors are swirling – with the talk around a renewal plan depending on GEnx powered Boeings. The decision is due near month end. The GEnx has the finest of green pedigrees and fits into GE's ecomagination.

Ever the media savvy fellow, SRB will wrap the deal in lots of "green" talk. Creating quite a lot of hot air in the process. Perish the thought SRB would admit to buying the wrong planes for the routes they have. It is very important to SRB to trump British Airways, which is also likely to go the Boeing/GEnx route on its next order. It will be a "greener than thou" thing. Sort of, save the planet by flying Virgin Atlantic. Willy Walsh's team could make a quick announcement but that is not BA's style. Unfortunately.

Either way, this means Boeing is likely to have a fat order for the 747i and 787 from the UK in the coming weeks. Of course the Virgin decision will not be because Boeing is clever, its about GE. Whatever.