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October 7, 2009

Airlines put Heathrow’s Third Runway in the Dragon’s Den

And so to the final ‘dragon’ in my review of the arguments for and against Heathrow’s Third runway.

If we just looked at the airlines serving Heathrow, then support for a third runway would be overwhelmingly positive. But no frills airlines such as Easyjet and Ryanair, who are being asked to pay increased landing charges at Gatwick and Stansted in order to help fund Heathrow’s infrastructure improvements, are less keen. As I haven’t yet mentioned the alternative High Speed Rail, perhaps this is the place to consider what ‘rail based airlines’ might think.

Heathrow’s existing Tennants

British Airways are unsurprisingly the most vocal in favour of a third runway at Heathrow, as they already benefit from having a massive hub operation in Terminal 5, which they want to expand by having extra runway capacity. In terms of the environmental damage caused by airlines, BA boss Willie Walsh was in New York recently, arguing that airlines across the world could achieve a 50% reduction in CO2 emmissions by 2050 - but many environmentalists are cynical about the industry’s ability to meet such targets, and even those that believe they are achievable do not consider that a 50% reduction is enough. So how does this relate to Heathrow, which is after all, just one airport out of several thousands worldwide which operate passenger flights, albeit the busiest one in terms of international passengers? The current government have made reductions in CO2 emmissions part of the conditions which would have to be met in order for Heathrow to gain approval. Obviously, this is all immaterial if the Conservatives stick with their policy to block an additional runway at Heathrow, but as Willie Walsh argued on Questiontime back in January, politicians in opposition can always play a completely different role once the enter government. At last week’s CIMTIG meeting, BAA’s director for Runway 3 said that “Conservative policy is about going after easy votes. As a transport policy, it is indefensible.”

Virgin meanwhile are pinning their environmental credentials on a massive investment of ‘all Virgin profits for the next 10 years’ in alternative fuels. Clearly both of these airlines believe that the aviation industry can still grow and cut emmissions at the same time. BMI also support a third runway, although speculation is that they will have been snapped up by one of their larger rivals by the time it gets built!

Non Heathrow based airlines

Ryanair in particular have launched legal challenges against BAA over the fees they are charged at Stansted, and have repeatedly refused to pay passenger handling bills, as they claim they are being forced to payin advance for infrastructure which they will never actually use.

High Speed Rail as an Alternative

The Conservatives have said that they will spend £20 billion on a high speed rail line between London and Manchester, and that they will encourage more people to travel to Continental Europe by train, in order to reduce the demand for a third runway at Heathrow. However, as BAA management have pointed out, offering easier rail access to Heathrow will only end up making it far more attractive for customers from the North of England. Meanwhile, Eurostar already have a 75% market share for point to point travel between London and Paris and Brussels, so there is little that government policy could do to switch more people onto the trains, apart from ban these flights entirely - a move which would be very un-Conservative! Although there is potential to see Eurostar services extended to cities such as Cologne and Amsterdam, this is a commercial matter for Eurostar to decide, and there is very little that a UK government could do to influence this, when the track and station access needed to make this happen is in other EU countries.

Verdict: Just as it goes without saying that most of Heathrow’s neighbours will be against further expansion, it can also be taken for granted that the main airlines using Heathrow would want to see it expand. But this misses out on the wider picture, especially as it is the no-frills airlines who are investing most heavily in new aircraft and new routes. It is therefore not a foregone conclusion to assume that the airline industry as a whole would say ‘we’re in’.

Final score - some of the referee’s decisions may be controversial, but my verdict is 2-3 against.

October 5, 2009

Passengers put Heathrow in Dragon’s Den

Continuation from: Heathrow in the Dragon’s Den | Neighbours

The recent deregulation of flights to the USA has shown very clearly that passengers vote with their feet, and choose Heathrow over Gatwick every time. Why else would Continental Airlines shell out £100m for two slot pairs at Heathrow in order to operate flights to New York, when they already have access at Gatwick? Despite the current economic woes, Heathrow has remained resilient as passenger numbers at almost all other UK airports have plummeted.

Do passengers like the Heathrow (or is that Hellthrow?) experience? Well, according to BAA’s own surveys, the user experience is slowly improving. Within two years, over half of Heathrow passengers will be using facilities that are less than 4 years old. Heathrow is already ‘moving up the table’ in terms of passenger surveys, and management claim they are hot on the heels of Amsterdam.

So would a third runway enable freer flowing traffic, or would it just snarl things up even more? Management claim that the new runway would preserve important feeder routes, and stop the airport ‘robbing destinations to pay for frequency’. Since 1990, Heathrow has gone from serving over 220 destinations to around just 180 today. This argument over hubbing is very persuasive. Most other arguments are essentially linear - i.e. more flights means more pollution and more contribution to the economy. The power of a hub increases dramatically due to the fact that doubling the number of routes means four times as many opportunities for connections.

Consider:

1 route = o connections.

2 routes = 1 connection pair (A to B via LHR).

3 routes = 3 pairs (A to B, A to C, B to C)

10 routes = 45 pairs - and so on.

This presents a very compelling argument on behalf of passengers. The key question to ask is what effect extra airfield capacity would have on the terminals. It is only natural to assume that BAA would want to build a sixth terminal in order to recoup their investment. Details of this are patchy at present - but anything which needs new terminal space to move outside the area in between the existing two runways is going to get very messy, considering how current rail infrastructure has to split to serve the central area (T1,2,3), T4 and T5.

Defending such claims, Heathrow’s Runway 3 Director argued that new capacity would make it easier to group flights according to airline alliances. Terminal 5 was already putting most BA flights under one roof, whereas Star Alliance would be hosted in the central area. This still doesn’t help passengers much who are connecting between different airline networks, or who might be using Sky Team airlines, who don’t offer feeder flights from within the UK and Ireland. However, these are in the minority, compared to BA or Star passengers.

Verdict - the most likely to say ‘we’re in’

March 30, 2009

Are British Airways always more expensive when they are the only airline offering direct flights?

In our news section, we’ve just looked at long haul routes where British Airways is the only airline offering non-stop point-to-point service.

The expectation might be that they would be able to get away with charging a premium for providing such a service - this has always been the way with the traditional airlines. However farcical it might sound, the logic has always been that the punter should be charged more for the direct routing, even though it costs the airlines much less to service such a route.

The article looked at flights to 10 different destinations across Africa, the Americas and Asia. Generally, the rule does still apply - regardless of the cost to the airline, consumers are prepared to pay more for the convenience of a direct routing, and the market is still driven by what the consumer is prepared to pay, rather than what it costs the airline to provide the service.

Infact, the main exceptions to the rule were where you might expect them - on flights to Bermuda, where British Airways were 18% cheaper than the nearest alternative, the non-direct routing would mean taking flights to New York, and then doubling back again to Bermuda - a route which hardly makes any sense at all, considering that Zoom Airlines used to offer flights from Gatwick to New York via Bermuda.

BA were also cheaper on flights to St Kitts and flights to Providenciales in the Turks and Caicos Islands - again, these were niche destinations where the alternative option would have been an unwieldy flight via the USA. However, BA weren’t always cheaper when it came to Caribbean flights where they were the sole direct provider - on flights to the Cayman Islands, it was cheaper to slug it via New York with Continental. Meanwhile, for flights to Trinidad (Port of Spain), BA were effectively competing against themselves, as the cheaper option was to fly with BA to neighbouring Tobago, and then take a short hop from there with Caribbean Airlines. However, the competition here is simply down to the fact that flights to Tobago are also available from airlines like Virgin and Monarch - therefore BA have to be competitive on that sector, making them competitive on the whole route through to Trinidad, providing you take the hop via Tobago.

On all the other routes we looked at, BA were still able to charge a premium for providing the non-stop service. In many cases, the difference was only a few percent, but when it came to flights to Entebbe / Kampala, the difference rose to 41% over the alternative of flying with KLM and Kenya Airways via Amsterdam. We can only assume that this is down as much to the perceived differences in service between British Aiways and their African rivals as much as it is down to the fact that BA serve the route non-stop.

March 23, 2009

20 Reasons To Fly With Ryanair

Last Thursday, the Times carried an article stating 20 reasons why passengers should not fly with Ryanair. Of course, the article made one or two good points that we would agree with, but here is our own response to this article:

1) 1p flights are available, but don’t expect to find cheap flights to Dublin when Ireland or U2 are playing at Croke Park!

Special offers have traditionally been used by retailers to get people through their doors, and Ryanair’s 1p flights are no different to this. One thing to bear in mind is that they don’t always set aside a certain number of seats on each flight to sell at the lowest possible price. Why on earth should they give away seats for nothing if there is a big event on in the destination city? The small print on their current special offers list makes it clear that you will not find cheap flights on a Friday or Sunday, and it also gives the blackout dates to save you the bother of searching during the busy periods. Look out for dates which seem to be set aside for the 1p flights, and be prepared for the same date to be offered for the outbound and return flight. How do you get round this? Simply fly out to one destination, and fly home from a different airport. See our article on playing Ryanair at their own game for further explanation about this.

2) Plenty of other cheap flights are available — if you know when and where to look

Just because you can’t get a flight for 1p doesn’t mean that other good offers aren’t available. If you really do hate Ryanair, then just make a commitment that you won’t allow them the chance to make any money from you. For example, if you book any flight departing the UK, then the first £10 will have to be handed over to the government for Air Passenger Duty, and there will usually be a similar amount given to the airport as a passenger handling fee. As long as you turn up for your flight, Ryanair won’t be able to avoid losing money on these charges.

You can also avoid the tedium of searching through a whole month at a time to find the best possible dates by using a site like Skyscanner.

3) All of the extra charges are avoidable — including the credit and debit card service fee

We really do wonder why people complain so much about the extra charges for things like luggage and credit card handling fees. Why not spend the time un-packing your bag, and only taking things you will really need for your holiday? People tend to bitch about Ryanair not offering any cheap flights for weekend breaks, and then complain at the same time that they are getting overcharged for taking their luggage. Surely you can get away for a couple of days with just a small carry on bag? If you are going away for a little bit longer, it might be cheaper to use a launderette halfway through your holiday — doing so will support the local economy where you are staying, and not Ryanair!

All you need to do to avoid the card handling fees is to get yourself an electron card — see our article about avoiding card charge rip-offs.

4) If you do carry luggage, why do you need to take more than 15 kg?

Some people might deride Ryanair for having a 15 kg luggage limit, but we would again advise travelling light, and of course weighing your bag before you leave for the airport. That way, you can avoid any nasty surprises at the bag drop.

5) So what if Ryanair’s website is rubbish, book your flights and go off and enjoy your holiday!

We have always felt that aesthetically speaking, Ryanair’s website is a nasty piece of work. But so what, it isn’t there to be hung in the Tate Gallery, it is there to make as much money from advertising revenue as possible. That’s why you’ll even see adverts for Ryanair’s rivals on the booking page — Ryanair’s bean counters have worked out that they have more to gain by doing this than they have to lose.

6) An early start means you will see more

I’m not much of an early riser either, but having to leave the UK at some ungodly hour means that you will also get your destination much earlier as well. This means more time to explore. The Times article then complains about anti-social flights later in the evening, complaining about arriving late at night and not finding anywhere to stay — has the author never heard of the concept of booking hotels in advance?

7) One person’s middle of nowhere is another’s quirky place to explore

A few years ago, I made the trek out to Frankfurt Hahn, and had a pleasant afternoon’s train journey through the Mosel Valley before catching my flight home. Granted, Frankfurt international airport is much closer to the city centre, but I wasn’t going to pay hundreds of pounds more, especially when I only wanted a one-way flight. There is always a way of making your trip interesting — besides, the so-called Ryanairports only account for a small percentage of Ryanair’s total destination list — the definition is of course a little bit subjective, but we would say that there are only about 10 airports which really are in the middle of nowhere, when compared to the main city airport which other airlines serve.

8) No one makes you buy anything on board

If you don’t like the prices of Ryanair’s on-board service, then just don’t buy anything. We don’t ever hear people complaining about trains having trolleys on board (or stations charging for toilets for that matter), so why should airlines be any different?

9) You can always block out any annoying announcements with noise cancelling headphones

Of course, these announcements are an annoying form of noise pollution, but Ryanair are not the only offender here. Thankfully, they can be mitigated by purchasing a pair of noise cancelling headphones — savvy travellers are usually the ones you will see with a pair of Bose headphones. They don’t come cheap, but they do provide you with in-flight bliss, and they will also protect you from that other in-flight irritation which can disturb you on just about any airline — the screaming baby.

10) Free seating means you don’t have to pay to get a good seat, so just turn up to the gate early, or quit worrying about it.

Those airlines which offer assigned seating are increasingly charging customers to get the seats they want. Ryanair offer priority boarding for £3 each way — this is one extra which is worth considering if you are travelling as part of a group, but bear in mind that many other passengers think the same way, so you might be just as well off without it. Remember too that some airports will require you to travel by bus between the terminal and the aircraft, and that people often board the plane from the front and the rear, so that seat which you have your eyes on might end up getting taken by somebody else.

At the end of the day, what’s the worst that could happen? You might end up having to sit next to someone you don’t know for a couple of hours, but that can either mean a possibility for an interesting conversation, or an opportunity to keep yourself to yourself and read or listen to music. Either way, it is not as if you are being asked to share the same bed with someone against your will, so why get too worried about it?

11) When the flights are so cheap, why bother seeking a refund?

I really do wonder what all the fuss is about with people who expect a refund off Ryanair. Even if something does go horribly wrong, they will only usually be liable for the cost you have paid for your flight. No airline is ever going to cover you for the consequential losses (i.e. hotel bookings, car hire etc) you might suffer if your flight is delayed.

There’s two ways round this — either get a fully comprehensive travel insurance policy which will cover you in the event of such problems occurring, or just accept that from time to time things will go wrong, but that more often than not, your journey will be trouble-free. Despite all the hype, Ryanair have fewer delays and cancellations, and fewer lost bags than any other major European airline.

12) Flights can be so cheap that you can book them without even having to worry about whether you will take the trip or not.

Why not take advantage of Ryanair’s special offers, and book yourself a few trips away. You can always decide closer to the time whether or not you can actually take the trip. If you don’t turn up, you will just lose the small fee you have paid your flight, and you could probably book 3 or four special offer flights for the price of just one return flight with other airlines.

13) No other airline can boast of putting places like Alghero, Haugesund and Zweibrucken on the map.

Just as we think we have all destinations covered, Ryanair open up somewhere new that we’ve never heard of. The intrepid traveller could spend months if not years hopping between all the different places Ryanair serves, and never get bored. As well as connecting the better known places on the European map, Ryanair really do have the ability to open up the economies of numerous undiscovered regional destinations. Of course, there is a flip side to this — routes can get dumped just as quickly, so perhaps this should give you even more impetus to go out and explore somewhere you see on Ryanair’s destination list that you think might be interesting.

14) Other people clicking on adverts and buying extra services means that budget minded travellers like myself can travel for next to nothing

Ryanair make just about as much money from ancillary revenues (bookings made through adverts on their website, responses to e-mail offers, in-flight sales etc) than they do from the flights themselves, so they can still give away flights for next to nothing on the assumption that many passengers will then book a hotel or hire car with them. Of course, there is no obligation for anyone to do so, giving budget minded travellers like myself the opportunity to travel for pennies, without any extra costs.

15) Ryanair tend to offer only one brand of car hire, airport parking etc — so you can come to a site like ourselves and find a lot more opportunities to get a better deal!

A lot of the time, Ryanair are relying on people’s laziness so that they can make money on extra services. For Example, Ryanair only offer car hire through Hertz, or airport parking through BCP — who is to say that these are always going to be the cheapest?

16) Ryanair’s growth and dealmaking has been so prolific that they also now fly from major airports, so I can get cheap flights from Birmingham airport, which is just 10 minutes away from my house.

When Ryanair first came onto the scene, they concentrated virtually exclusively on out of the way low-cost airports. As they have grown, they have expanded into other major airports which have had room for them, often taking advantage of cheap off-peak slots. So if you are looking for cheap flights from the UK, then Ryanair now have a major presence at airports like London Gatwick, Birmingham, Manchester and Edinburgh, as well is their more traditional hubs such as Stansted, Liverpool and Glasgow Prestwick. On mainland Europe, you’ll now find Ryanair offering cheap flights to Bologna instead of Forli, and offering a whole range of cheap flights to Spain using airports like Madrid, Malaga and Alicante, which we would previously have thought they would avoid completely.

17) Some people might criticise Ryanair for their environmental record, but mile for mile, they are one of the greenest airlines in the sky.

Whatever opinions one might have about the wider environmental impacts of flying, Ryanair exclusively use the next generation Boeing 737-800, which is one of the most efficient available, in terms of fuel burned per passenger per mile. Ryanair’s commitment to low costs and either using uncongested airports, or using major airports when they are less busy, helps to reduce their fuel burn further.

Whilst some commentators might criticise Ryanair’s aggressive marketing policy, their continued usage of special offers ensures that Ryanair’s aircraft are kept as full as possible.

18) If you want to fly with another airline, then you can at least be grateful that Ryanair’s presence in the market has brought down costs for everyone.

Flightmapping.com certainly isn’t here to act as Ryanair’s mouthpiece — they certainly do enough of their own publicity, even if they do give us plenty to comment on. So we should just say that we’d love you to spend as much time as possible on Flightmapping.com, and book cheap flights with some of the airlines that pay to advertise on our website (Ryanair don’t).

Whoever you choose to fly with, don’t forget that Ryanair have helped make flights cheap for everyone. Just this weekend I was having dinner with the owner of another cheap flights website and a colleague within our industry, and he was talking about taking flights to Salzburg with Ryanair for £80, which I regarded as expensive. If he had said that 10 years ago, I would have told him he got a bargain. As it happened, he only booked his flights are few days beforehand, and was travelling over the weekend, so he’s still got a good deal.

19) When Michael O’Leary said he was thinking about talking for toilet usage, he was just taking the piss

This so-called ‘idea’ was suggested jokingly by Mike Rutter of Flybe back in September 2006, and it comes up from time to time. As usual, O’Leary’s outburst was well timed to grab headlines and promote Ryanair’s latest offer. A few days later, he confirmed that they had no plans to introduce such a scheme.

20) I don’t care what other people think of Michael O’Leary, I have quite a lot of time for the guy

Somehow I really don’t think that Michael O’Leary is bothered that some people love to hate him, as long as they are always talking about Ryanair. I have met him on three occasions, and always found him to be extremely charming and good-humoured. Considering the amount of distrust that figures like Sir Fred Goodwin have made us have in The City, then we really should be grateful to have people like Michael O’Leary (and let’s not forget other aviation pioneers like Sir Stelios and Sir Richard) around to shake things up a bit and tell it as it is.

I don’t want to give Ryanair any more publicity than I need to, but I’ll have to admit that my next flight will be with them, so I hope I won’t have to eat any of my words. Out of all the times I’ve flown with Ryanair so far, I’ve never had more than about a 15 minute delay, so maybe my time is due!

March 19, 2009

At last, a cheap alternative for Munich flights?

Ryanair’s latest seemingly middle of nowhere airport is just outside the picturesque town of Memmingen (FMM) in Bavaria, which they are marketing as ‘Munich West’. Cheap flights to Memmingen start on 1 May from London Stansted and Dublin. So is this going to be a viable alternative to taking flights to Munich Franz Josef Strauss airport (MUC), a facility that no-frills airlines have often described as being high cost, and aimed at traditional scheduled airlines like Lufthansa?On the other hand, Munich has recently become a bit of a hotbed for no-frills competition, with Aer Lingus launching cheap flights from Gatwick at the end of April, complementing easyJet’s existing routes from both Gatwick and Stansted. We looked at a weekend trip to Munich flying out on Friday 1 May, the launch date for this route, and returning on Sunday 3rd May:

Ryanair cheap flights to Memmingen

  • Outbound flight — £.79. Depart Stansted 13:40 and arrive Memmingen 16:00.
  • Outbound taxes and fees — £28.97.
  • Return flight — £.79. Depart Memmingen 16:25 and arrive Stansted 16:45
  • Return taxes and fees — £15.05.
  • Credit or debit card handling fees — £9.50 (see article on how to avoid these)
  • Return train fare from Memmingen to Munich — €39.20 (£37 — does not include transfer from Memmingen airport to centre).
  • Total — £92.10.

easyJet cheap flights to Munich

       

  • Outbound flight — £35.99. Depart Gatwick 12:55 and arrive Munich 15:45 — twice daily easyJet flights to Munich are also available from Stansted. Note that if you travelled the day before, the fare goes down to £25.99.
  • Return flight — £23.99. Depart Munich 16:30 and arrive Gatwick 17:25. A cheaper flight is available in to Stansted for £18.99, but this means leaving Munich at 11:30 — a bit early for a weekend break. Alternatively, you could stay until 21:50 and catch a flight back to Stansted for £20.99.
  • Debit card handling fee — £1.95.
  • Total — £61.93.
  • Aer Lingus cheap flights to Munich

  • Outbound flights — £14.99. Depart Gatwick 06:40 and arrive Munich 09:25 — if you are going to take a whole day of work, you might as well make an early start of it! As with easyJet, the flight is cheaper if you can go one day before — in fact, in this case Aer Lingus will ‘give’ it to you for nothing.
  • Outbound taxes and charges — £20.
  • Return fare — zero.
  • Return taxes and charges — £9.99. Depart Munich 10:05 and arrive Gatwick at 11:05.
  • Handling fee — £8 — as with Ryanair, this fee can be avoided by using an electron debit card, but Aer Lingus only tell you about that at the end of the booking process.
  • Total — £52.98.

British Airways not so cheap flights to Munich

  • £110 – depart Heathrow 07:50 and arrive Munich 10:55 / depart Munich 17:30 and return Heathrow 18:30.

Lufthansa decidedly expensive flights to Munich

  • £157 — depart Heathrow 09:35 and arrive Munich 12:25 / depart Munich 19:10 and return Heathrow 20:10.

Verdict — as is so often the case, Ryanair’s seemingly cheap flights of £.79 in each direction become massively more expensive when all the extra charges are taken into account. Even this is before you add on the cost of a train fare from Memmingen airport in to Munich.

Memmingen itself actually looks like quite a pretty town, so it would be well worth a visit if you were in the area, but for the price comparison we have done here, it certainly can’t be seen as a cheap alternative to Munich. On the other hand, Aer Lingus’ new flights to Munich are an absolute steal, especially as the £8 handling fee can be avoided by using an electron debit card. This goes to show that a bit of competition at the main airport can be just as good as having a cheap alternative somewhere else, and gives the prospect of a weekend away in the Bavarian beer capital for less than £50.

We will certainly drink to that!

 

March 11, 2009

As BMI scrap flights, is Heathrow’s loss just Amsterdam’s gain?

If ever there was a clear-cut argument in favour of Heathrow third runway, then it would be the fact that BMI have just scrapped their flights from Leeds Bradford and Durham Tees Valley to Heathrow. Anyone looking to transfer onto other flights will now have no option but to travel to Amsterdam with KLM instead, as neither of these airports offer hub feeder flights from any other airline.  

Proponents of Heathrow’s third runway argue that the extra capacity that would be created could be used to keep open domestic routes like these two, and also to connect other British cities with Heathrow which have lost their links due to the high taxes imposed on UK domestic flights. Obvious cities which might otherwise support flights into Heathrow would include Liverpool and Inverness in the north and Plymouth and Newquay in the southwest. Meanwhile, opponents argue that people should travel to Heathrow by rail, and that the overall number of flights should be reduced anyway, thus reducing the prospect of these routes from ever becoming viable again. 

Right now, the facts would appear to speak for themselves when it comes to connecting flights, but what about people who just want point-to-point travel between British regional cities and London? We would expect some passengers from Leeds Bradford and Durham to transfer to flights from Manchester and Newcastle respectively, but a far more significant number will travel by train. Both airports also talked about finding replacement airlines to open up new routes into London, but we heard the same rhetoric when VLM scrapped their Liverpool to London City flights. Perhaps Flybe could come onto the scene at Leeds Bradford, where they already have a presence, but I don’t see them operating Gatwick to Durham Tees Valley flights alongside their existing Gatwick to Newcastle route. 

When it comes to the economic arguments about losing jobs to Amsterdam, there is nothing new here. For many years, KLM have offered more feeder flights from UK regional airports than any other airline, and they are set to increase this further still when they open up their new Liverpool to Amsterdam flights at the end of this month. Naturally, this isn’t good news for the UK economy, but we shouldn’t forget that Heathrow’s third runway would come with considerable economic and environmental costs as well. Nor should we forget that the ‘hub and spoke’ model is an inefficient way of operating flights, even if there is always going to be a need for it on some routes.

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