Tag Archives: Lufthansa

When flights to hub airports are still cheaper if you go indirect

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If you want to reach many destinations from regional airports like Birmingham, Manchester or Glasgow, you would expect to take a connecting flight through a major European hub airport.

But what about when you want flights to that hub itself? You would have thought that there would be enough capacity on the route for it to be cheaper to go direct with the airline which operates that hub facility. As it happens, the opposite is often the case, even when flights via that hub are cheaper than direct flights to the other hub.

Looking at flights to 10 hub airports served by direct and connecting flights from Birmingham, we found the following:

Hub airport
Airline
Direct £
Indirect £
Premium%
Airline
Via
Brussels Brussels Airlines 255 200 28 KLM AMS
Copenhagen SAS 208 151 57 KLM-AF AMS / CDG
Dubai Emirates 470 339 131 Swiss ZRH
Frankfurt Lufthansa 396 151 245 KLM AMS
Istanbul Turkish 183 161 22 KLM AMS
Munich Lufthansa 193 151 42 KLM AMS
New York Continental* 437 369 68 KLM-DL AMS
Zurich Swiss 193 161 32 KLM-AF AMS / CDG

Flight prices were searched using Expedia.co.uk for a 1 week trip (therefore including a Saturday night stay and often being cheaper), between 1st and 8th December. Only flights to Paris and Amsterdam were cheaper direct – hardly surprising considering how close they are, but Brussels still worked out more expensive to go direct.

Now these dates might be quite soon, but they are still before the mid-December Christmas rush. Looking forward to March next year, prices for direct flights to Brussels, Frankfurt, Munich and Zurich fell below the prices for flight connections.

This shows that the network carriers are still charging hefty premiums for direct flights. This seems to fly in the face of environmental concerns over short haul flights being the most polluting – and two short haul flights when one will often do being particularly bad for the environment.

The low cost airlines have shown that point to point routes are what the customers want, and that they shouldn’t need to pay for the privilege. Most low cost airlines actively shun transfer passengers, as if one flight is late, they don’t want to deal with missed connections, and their smallprint makes it clear that they are your problem, not theirs.

Yet, of the routes featured, none have a low cost alternative from Birmingham. At a push, you could fly to Paris with Flybe, and then take Thalys to Brussels, or if your dates were flexible, you could find a cheap flight to Geneva and then train it to Zurich.

So will the legacy airlines ever wake up to the idea that direct flights should be cheaper for them to operate, better for the environment, and therefore cheaper for the consumer? Not without a heft taxation penalty against them, and UK Air Passenger Duty is onerous enough as it is. In the meantime, they will continue to charge more for the convenience of a direct service, especially if there isn’t a realistic low cost alternative.

Notes:

  • *Continental dates were 2nd-9th December. No direct Continental flights found in March 2012.
  • AF = Air France, DL = Delta
  • AMS = Amsterdam, CDG = Paris CDG, ZRH = Zurich

Is this the beginning of the end for bmibaby?

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Following on from yesterday’s news that Lufthansa can’t find a suitable buyer for bmi, we’ve had confirmation today that jobs are going to be axed, and that routes will be curtailed at Birmingham, Manchester and Cardiff.

So, is it wise for bmibaby to concentrate their efforts on one large base at East Midlands airports. They say that they want to concentrate on ‘growth routes’, but with growth comes competition, and Ryanair are already very well established at Castle Donnington. Right now, can bmibaby really push themselves as the ones who offer a ‘more pleasant’ experience over Ryanair’s cut-throat service, or will customers continue to vote with their wallets and choose the airline which gives them the cheapest fees? When going after business passengers, it is much easier to play on offering services which take people closer to where they want to go, but is this so important for the leisure passenger – especially when East Midlands airport itself is playing a hybrid game of serving the three cities of Nottingham, Leicester and Derby, and also trying to poach passengers from Birmingham, without being directly adjacent to any of these cities.

Easyjet might be out of the way at East Midlands, but there will have been obvious reasons why they made a commercial decision to pull out. Baby reducing their presence at Manchester leaves room for Jet 2 or Easyjet to add more services, whereas Ryanair and Flybe will swoon over any signs of weakness at Birmingham, and leave tiny with very little opportunity to come back in once the economy starts growing again. As for Cardiff? Not exactly Ryanair’s favourite airport a few years ago, but if baby reduce their presence there, Cardiff airport operators will have many more reasons to do a deal with Ryanair.

This scenario could easily see bmibaby exposed as a one-airport operator within a few months, with very few other places to go to. It would then be only a matter of time before Ryanair came in and made a pincer movement to finally kill off baby for good.

What does Warren Buffett’s train investment say about airlines?

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So, Warren Buffett has invested some $26 billion buying American freight operator BNSF, with news commentators hailing this as an ‘all-in’ bet on the future of the US economy. But there’s more to it than that – it is, of course, a huge leap of faith into the future of railways, even if lumping coal isn’t exactly as glamarous as swish new high speed train sets. But Buffett has never been about style over substance, and trains in Europe are usually associated with massive subsidies.

In typical long-term Buffett style, he has talked about growth potential of rail in the USA over the next 3 decades, and even if this investment is in freight railways, there is no doubt that passenger rail networks will also see substantial development over this period.

Compare this to Buffett’s attitudes towards airlines, after he lost 75% of his $385 million investment in US Airways back in 1995. He pointed out that the he didn’t think the US airline business had ever made money – and this was in an industry without the kind of state carrier subsidies which were common elsewhere in the world. Buffett is quoted as saying, in respect of the Wright brothers’ first flight:

“If there had been a capitalist down there, the guy would have shot down Wilbur. One small step for mankind, and one huge step for capitalism.”

Has anything changed in the airline industry since 1995? Well, there’s been plenty of deregulation across the pond, and plenty of former big names are no longer with us. In Europe, we have Ryanair’s Michael O’Leary echoing many of Buffett’s sentiments, describing the current situation facing European airlines as a ‘bloodbath’, and the ‘perfect storm’. Of course, Ryanair are one of the few airlines to buck the trend, whereas this morning’s announcement from Lufthansa that they can’t find a suitable bidder for bmi, and that consequently bmibaby are shedding jobs hardly comes as a surprise.

Despite all this, Warren hasn’t been put off from investing in flying alltogether, having ditched his own private jet, aka ‘The Indefensible’ back in 1998, in favour of buying private jet hire company NetJets.

At last, a cheap alternative for Munich flights?

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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!