x
Breaking News
0

RPT-UPDATE 2-EasyJet muscles in on long-haul passengers with new connecting service

Stock MarketsSep 14, 2017 00:40
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. RPT-UPDATE 2-EasyJet muscles in on long-haul passengers with new connecting service

* Budget airline partners with Norwegian, WestJet

* CCO sees easyJet taking slice of 70 million person market

* Norwegian says still talking to Ryanair about similar deal (Adds quotes from Norwegian CCO)

By Alistair Smout and Victoria Bryan

LONDON, Sept 13 (Reuters) - British budget airline easyJet EZJ.L launched a new booking platform on Wednesday to allow customers to more easily connect onto long-haul flights with other airlines, moving ahead of its rivals in a potentially lucrative market.

Both easyJet and Ryanair RYA.I have for some time been looking at so-called feeder flights to attract more customers, and have often said traditional carriers should use low cost rivals to bring passengers to their hubs.

The move is an attempt to muscle into the market for connections at international hub airports currently dominated by the big global airline alliances - Oneworld, SkyTeam and Star Alliance.

EasyJet passengers will be able to buy other airlines' flights on easyJet.com and will also initially be able to connect onto long-haul flights provided by Norwegian Air Shuttle NWC.OL and WestJet WJA.TO at London Gatwick using the airport's Gatwick Connect scheme.

Peter Duffy, chief commercial officer at easyJet, said 70 million passengers currently begin journeys at easyJet airports, and make a stop before travelling across continents, and that easyJet wanted a slice of that market.

"This will open up lots of new competition for long-haul travel and will drive prices down," Duffy told reporters.

The Gatwick Connect scheme allows passengers to pick up their bags and drop them off at a transfer desk before going through security for their next flight. Passengers will have a minimum 2-1/2 hour connection time.

The move also increases pressure on British Airways ICAG.L at Gatwick, RBC analyst Damian Brewer said, where it lacks the short-haul feed for its intercontinental routes.

In January, Ryanair said it hoped to start offering connections to long-haul flights from Norwegian and Aer Lingus from May, but later said that would more likely be from September. It said technical issues were causing delays.

Norwegian's chief commercial officer Thomas Ramdahl told Reuters it was still talking to Ryanair.

"We have a solution that works for two parties within the low-cost model, so we can easily bring this solution onto Ryanair if they are willing to join us," Ramdahl said, adding easyJet had greater flight numbers to Gatwick, which is home to Norwegian's biggest long-haul network.

Ramdahl said Norwegian was looking at similar arrangements in the United States and Asia, and had talked to Qantas-owned Jetstar QAN.AX about a connecting partnership for Norwegian's flights to Singapore.

At 1430 GMT, shares in Norwegian were up 2.6 percent, while easyJet's rose 1.6 percent, the biggest increase on Britain's FTSE 100 .FTSE .

Aviation consultant John Strickland said easyJet's platform would make customers' lives easier, but as the airline already operated very full planes, it was more a case of topping up business where available.

"Importantly for easyJet it won't pick up the tab for any missed connections or baggage disruptions," he added.

EasyJet said it did not expect any additional costs as a result of the new service. It also said it was in talks with carriers in the Middle East and Asia about joining the scheme, which would expand into other airports in Europe.

RPT-UPDATE 2-EasyJet muscles in on long-haul passengers with new connecting service
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

 
Are you sure you want to delete this chart?
 
Write your thoughts here
 
Replace the attached chart with a new chart ?
Post
Post also to:
1000
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
 
 
 
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email