Annex 3
MEDIA INFORMATION
The Air's still not Fair: Transatlantic Business
Class Fares go from Bad to Worse
NEW BRITISH
MIDLAND STUDY
SHOWS UK-US FARES
UP TO
207 PER CENT
HIGHER THAN
EUROPE—BRITISH
MIDLAND COMMITMENT
TO UNDERCUT
CURRENT FARES
British Midland today released figures showing
that transatlantic business class travellers from Heathrow continue
to face significantly higher fares than their European counterparts.
Last Summer, British Midland launched its "Make
the Air Fair" campaign. It revealed that return business
class fares from Heathrow to the United States were up to £3,158
(172 per cent) more expensive than fares from European cities
to the US.
Today, the gap has increased. On Heathrow-Los
Angeles, for example, the cheapest return business class fares
is £5,138 compared to just £1,673 on Milan-Los Angeles,
£3,465 (207 per cent) more expensive.
Sir Michael Bishop, Chairman of British Midland
said:
"Last year we showed that transatlantic
business class travellers from Heathrow can pay between £1,600
and £3,100 more than their European counterparts. An extra
charge of up to 172 per cent"
"Today, we have released figures which show
that return business class fares on regulated routes such as Heathrow-Chicago
have increased compared to last year. In contrast, they have actually
come down on de-regulated routes such as Amsterdam-Chicago".
"A year on, things have not got any better
for the consumer. In fact, they have got worse. Given the low
exchange rate with the dollar, this should be an opportunity to
benefit from more trade and tourism through increased transatlantic
air travel".
"I can give this commitment: If British
Midland is allowed to commence its own services between Heathrow
and the United States next Spring, we will undercut current fares
being offered, just as we have done when we have entered new short
haul routes."
Sir Michael also highlighted increasing cost
pressures in economy class on services between Heathrow and the
United States. He continued:
"We should not be fooled into thinking that
all is rosy in economy class just because fares are advertised
at £199 return. As everyone knows these are limited in number
and subject to various restrictions—it's almost easier to
get hold of a winning lottery ticket than get one of them".
"In a closed market, the situation can only
get worse with British Airways squeezing out capacity in economy
class through the progressive replacement of B747s with smaller
B777s."
NOTES TO
EDITORS
1. Detailed comparisons of lowest business
class round-trip fares are attached to this press release.
2. Routes between London Heathrow and the
United States are closed to only four British and American airlines:
British Airways, Virgin Atlantic, American Airlines and United
Airlines.
3. Britain is just one of four countries
in the European Union that has not negotiated Open Skies agreements
with the United States. The others are Greece, Ireland and Spain.
4. British Airways announced last year that
it was replacing B747s with B777s on certain transatlantic routes
with an estimated reduction in economy class capacity of 12 per
cent. The introduction of World Traveller Plus class will further
cut economy-class capacity of an average B777 by 75 seats.
For further information, contact:
— Robert Nadin, British Midland
— Pete Bowyer, BSMG Worldwide
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