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November 5, 2009

Why don’t no frills airlines offer more cheap flights to Greece?

I was asked on twitter by @Korb0s why there aren’t any Ryanair flights to Greece. The question could of course be extended to why there aren’t more cheap flights to Greece from all of the budget airlines, with Easyjet and Jet2 perhaps being the main exceptions. I narrowed down the 140 characted twitter answer to two words (airport monopoly), and said I’d give a bit more explanation later. So here are the key reasons:

  1. Airports monopoly. Greek airports operate on a monopoly basis, and to paraphrase Ryanair’s route development manager, ‘they wouldn’t know a commercial deal if it came up to them and slapped them in the face’. One of Ryanair’s biggest driving factors in developing new routes is the ability to secure the best possible deals out of the airports it wants to fly to. This can make or break a route decision just as much as whether or not they actually forecast demand to be there. If they get their sums wrong about demand, they can quickly drop the route, if they can’t screw a good deal out of the airports, they are stuck with paying high handling fees forever - that is the crux of the matter.
  2. Seasonality - no-frills airlines prefer to operate routes which have demand throughout the year. The market for flights to Greece has traditionally been dominated by charter companies, who offer packages during the summer season. Greece is not typically seen as a winter sun destination, and unlike destinations like Barcelona (Girona) or Granada, there aren’t any Greek airports which are close to ski resorts.
  3. Dispersal - when no-frills airlines have competed well against charter operators, they have opened up routes where they can put on a reasonable frequency of flights, and where a good range of resorts can be accessed from the destination airports. Apart from the capital Athens, Greek destinations are scattered around a plethora of islands, making no-frills flight routes to any one island less likely to be viable.
  4. Distance - a flight from London to Alicante is 914 miles, whereas a flight to Athens is 1,485 miles. This extra flying distance doesn’t just burn up a lot more fuel, it also means more crewing time, and more usage of the aircraft. For example, Easyjet’s 6:20 flight from Gatwick to Athens doesn’t arrive back into Gatwick until 14:20 - effectively half the day gone to service just one route. Sure, passengers have a higher perception of value for the longer routes, but it is still easier to juggle slots around two shorter routes than one longer one. At a regional level, Flybe have opened up a number of routes into various regional airports in France, but Greece would simply be out of the range of the Bombardier Q400 aircraft that they use on these routes - although flights to Athens from Birmingham using their Embraer 195 jets would seem to make reasonable sense.
  5. Ancilliary revenue - this is just a theory, but I would guess that as many Greek island destinations are fairly small, a large proportion of passengers use transfer buses to get to and from the resorts they are staying at. There is less benefit from having a hire car, and people who do might be more likely to rent a car just for the day. If this is the case, it means less chance of earning extra money for the airlines - but they should at least sell a few more sandwiches onboard their flights.

As always, this is just my tuppence, but I hope it gives a few insights into why there aren’t more flights to Greece from the UK. James

May 18, 2009

Hellenic confirm Birmingham to Athens flights launch

New flights to the Greek capital Athens from Birmingham airport have been confirmed by Hellenic Imperial Airways.

Well, I’ll still maintain my concerns about the long term viability of this route, but it is at least official that these flights will be operating. The first departure date will be 27th May - just 9 days away, an astonishingly quick turn around from putting seats on sale to route launch. It all smacks of a rushed-job, but let’s see.

And if Birmingham can now get flights to Athens launched, how about all those other European capitals still missing off the route map. Madrid? Rome? Berlin?

May 1, 2009

New flights to Athens from Birmingham?

According to the Travel Trade Gazette, the Greek charter airline Hellenic Imperial Airways is in discussion with Birmingham Airport about starting flights from the West Midlands to Athens, with onward connections to Jeddah in Saudi Arabia.

These flights would be the airline’s first foray into the scheduled market, and will be operated using Boeing 747 — 200 aircraft. Prices have been quoted at £199 plus unspecified taxes for Athens flights, and £350 plus taxes for return flights to Jeddah.
Quite frankly, I don’t think this is really something to get that excited about at this stage. I’m also sceptical about the proposed choice of aircraft for this route.

Flights are touted as operating to Athens up to 4 times each week, with a continuation on to Jeddah twice each week. I can’t think of any flights from Birmingham to European destinations which operate with anything other than narrowbodied aircraft (up to a maximum size of a Boeing 757 or Airbus A321), so filling a Boeing 747 on this route strikes me as a highly ambitious project. Granted, there has to be reasonable demand for direct flights from Birmingham to Athens, but I’m sure that the other airlines based at Birmingham, in addition to the Greek national airline Olympic, who by comparison operate a similar frequency of flights from Manchester to Athens using Boeing 737 aircraft, will have already looked at this.

I would imagine that one of Flybe’s Embraer E195 jets would be far more suitable for this route, and considerably more economic in terms of fuel usage. However, there are several other major European capitals which aren’t yet served from Birmingham — Berlin and Madrid being the obvious two, and I’m sure that however obvious Athens might seem as both a destination in its own right and as a connecting point for other destinations in Greece and beyond, Flybe’s bean counters have done their sums.

In terms of pricing, I’ve taken a quick look at flights to Athens from Birmingham in mid-October, and found availability for just under £170 with Swiss via Zürich. For a new route to work within Europe, I would expect it to come on stream at a much lower price than a compatible connecting flight, especially as we’re talking about a totally unknown airline here, using very old aircraft.

As for flights to Jeddah, the biggest demand here is during the annual Haj season, and this must surely be best met with ad hoc charter services, rather than year-round flights? Granted, Saudi Arabia is a growth market, and flights to both Jeddah and Riyadh from London can be prohibitively expensive, but there must be many more destinations in the Middle East and Asia which are a higher priority to get served from Birmingham.

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