All systems go for no-frills flights

Budget operators will need to revamp their image if they're to keep business travellers onboard, says Simon Calder

"In 10 years' time, everybody in Europe will be flying on a low-cost airline." Four years ago, Stelios Haji-Ioannou's prediction would have been ridiculed: his easyJet airline was about to start its first routes, using a borrowed plane, linking unfashionable Luton with Glasgow and Edinburgh. But it would be an unwise airline executive, or business traveller, who ignores him now.

"In 10 years' time, everybody in Europe will be flying on a low-cost airline." Four years ago, Stelios Haji-Ioannou's prediction would have been ridiculed: his easyJet airline was about to start its first routes, using a borrowed plane, linking unfashionable Luton with Glasgow and Edinburgh. But it would be an unwise airline executive, or business traveller, who ignores him now.

Between the English and Scottish capitals, there are now a dozen no-frills flights each way, each working day, operated by easyJet and its arch-rival Go. One-third of the passengers on board are business travellers.

November 1995 was when the aviation map of Britain was redrawn. The Greek shipping millionaire had travelled widely in the United States on board Southwest Airlines, which has been consistently profitable while sharply reducing fare levels on every route it serves. "All you had to do was compare what people paid in the US relative to what people paid in the UK and Europe, and I said to myself there must be money to be made here."

Southwest's secret was hardly rocket science: it involved looking at each stage of the operation of an airline, and stripping out all but the essentials. But safety was never negotiable: Southwest also happens to be the safest airline in the world. Having emulated the model, and nailing down the easyJet's cost base as low as possible, it was necessary to create a market. Lurid orange advertising hammered home the message that you could fly between England and Scotland for £29. The paint job on the planes consisted of the easyJet telephone number.

Initially, the intention was to create new leisure traffic, but business travellers soon saw the logic of flying for a quarter of the fare that the established airlines were asking. There was also an unexpected benefit: people running small businesses identified with easyJet much more than with British Airways and British Midland.

BA's response showed how seriously Britain's biggest airline takes the threats, and opportunities, of no-frills aviation. It has so far pumped £20 million into Go, the low-cost offshoot that started flying last year. The airline's intention, says sales and marketing director David Magliano, is to expand the market: "In the States, low-cost airlines account for 25 per cent of all passenger journeys. That figure's only five per cent in Europe, so there's plenty of room for growth."

Not everyone would agree that BA's motives are entirely expansive. Since Go commenced, two rival no-frills airlines - AB Airlines and Debonair - have gone out of business in the face of intense competition.

Loyal customers of KLM UK, too, were dismayed to lose long-established domestic links when the carrier restructured its business. The airline has now launched its own no-frills operation, Buzz which will take over five KLM UK routes in January.

Increasingly in business, image is improvement, and that has been a problem for easyJet and Ryanair. "The trouble with easyJet is that its whole look is cheap", says one frequent flyer. Ryanair also has a tired logo that is at odds with its brand-new, hi-tech 737-800 aircraft, and its position as Europe's biggest no-frills airline with 1,200 flights each week. Virgin Express, too, has failed to achieve the usual Branson marketing success. The need for sharp, stylish design was recognised early by Go; the airline says its image is well-regarded by the 30 per cent of its passengers who are travelling on business.

Another impediment for no-frills airlines seeking business custom is that most bookings are made direct - little or no commission is paid to travel agents. But in the past few years, agents' resistance to booking low-cost carriers has diminished as more companies move towards a fee-based arrangement.

The next step for easyJet is likely to be at ground level, but of equal interest for business travellers. This month, the airline is expected to sign an agreement with a motor manufacturer that will enable it to start a car rental business. Initially, the fleet will be based in the UK and Spain, but is set to expand to all easyJet destinations. The easyEverything Internet bureaux are already popular with business travellers, and there are rumours of an easyHotel chain. Let us hope that there are also plans for a new logo.

Budget jet travel - the sky's the limit

ONE UNEXPECTED bonus of low-cost aviation has been a new range of destinations. In the search for airports with low fees, the no-frills carriers have targeted a range of destinations that were previously not served from the UK. These are among the links have opened in the past five years where previously there was no service:

Bournemouth to Dublin on Ryanair

Liverpool to Belfast, Luton, Geneva and Malaga on easyJet

Prestwick to Dublin, Stansted and Beauvais on Ryanair

Stansted to Kristianstad and Skavsta (both Sweden), Torp (Norway), Hahn (Germany), Ancona and Treviso (Italy), Carcassonne, Dinard and St Etienne (all France) on Ryanair

Stansted to Shannon on Virgin Express

Airlines scramble for price-conscious traveller market

TEN DAYS ago, KLM followed BA's example by establishing a no-frills operation, Buzz, which begins flying on 4 January. KLM UK has been struggling in the face of fierce competition at its Stansted base from Ryanair and Go.

Its first response was to cut back sharply on existing domestic routes this autumn. Dr Trevor Field of Aberdeen was one of many KLM UK customers dismayed by cuts, which ended a four-times-daily link with Essex: "Those of us who used the Stansted service valued the ability to reach London via an efficient airport and rail link."

The low-cost alternative, Aberdeen to Luton on easyJet, is less effective because Luton Airport Parkway has still not opened.

The next stage in KLM UK's new strategy is to "de-frill" services from Stansted to Berlin, Dusseldorf, Frankfurt, Milan and Paris. They will be re-badged as low-cost flights on Buzz, and joined by new links to Lyon and Vienna.

"It was a defensive move," says Tony Comacho, commercial director of Buzz. "We were middle ground, offering a commuter-style service, but falling between the two stools of being a premium point-to-point carrier and the low-cost entrants at Stansted."

The new airline is targeting the business market, promising a "pay as you go" operation. "You can tailor your own food and drink choice," says Comacho. "You don't have to buy a business-class ticket to get a better meal, or lounge access."

Each of the Buzz destinations has plenty of existing services from the London area. Rivals say offering optional frills does not fit the low-cost model, and that Buzz is using the wrong aircraft - BAe 146s, rather than the larger, industry-standard Boeing 737. The airline says it has ordered two Boeings and will buy more as passenger numbers build.

From January, the airline's fate will rest with the business traveller.

The Independent travel offers: Discover a world of inspiring destinations

News
A 1930 image of the Karl Albrecht Spiritousen and Lebensmittel shop, Essen. The shop was opened by Karl and Theo Albrecht’s mother; the brothers later founded Aldi
people
Arts and Entertainment
Standing the test of time: Michael J Fox and Christopher Lloyd in 'Back to the Future'
filmA cult movie event aims to immerse audiences of 80,000 in ‘Back to the Future’. But has it lost its magic?
Arts and Entertainment
Flora Spencer-Longhurst as Lavinia, William Houston as Titus Andronicus and Dyfan Dwyfor as Lucius
theatreThe Shakespeare play that proved too much for more than 100 people
News
exclusivePunk icon Viv Albertine on Sid Vicious, complacent white men, and why free love led to rape
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
Arts and Entertainment
Stir crazy: Noel Fielding in 'Luxury Comedy 2: Tales from Painted Hawaii'
comedyAs ‘Luxury Comedy’ returns, Noel Fielding on why mainstream success scares him and what the future holds for 'The Boosh'
Life and Style
Flow chart: Karl Landsteiner discovered blood types in 1900, yet scientists have still not come up with an explanation for their existence
lifeAll of us have one. Yet even now, it’s a matter of debate what they’re for
Arts and Entertainment
'Weird Al' Yankovic, or Alfred Matthew, at the 2014 Los Angeles Film Festival Screening of
musicHis latest video is an ode to good grammar. But what do our experts think he’s missed out?
Sport
New Real Madrid signing James Rodríguez with club president Florentino Perez
sportColombian World Cup star completes £63m move to Spain
Travel
Hotel Tour d’Auvergne in Paris launches pay-what-you-want
travelIt seems fraught with financial risk, but the policy has its benefits
Arts and Entertainment
booksThe best children's books for this summer
Life and Style
News to me: family events were recorded in the personal columns
techFamily events used to be marked in the personal columns. But now Facebook has usurped that
Travel
ebookHow to enjoy the perfect short break in 20 great cities
Independent Travel Videos
Independent Travel Videos
Simon Calder in Amsterdam
Independent Travel Videos
Simon Calder in Giverny
Independent Travel Videos
Simon Calder in St John's
Independent Travel Videos
Independent
Travel Shop
the manor
Up to 70% off luxury travel
on city breaks Find out more
santorini
Up to 70% off luxury travel
on chic beach resorts Find out more
sardina foodie
Up to 70% off luxury travel
on country retreats Find out more
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Travel

    VB.NET and C# developer (VB.NET,C#,ASP.NET)

    £30000 - £45000 per annum + Bonus+Benefits+Package: Harrington Starr: VB.NET a...

    Visitor Experience volunteer

    Unpaid voluntary role: Old Royal Naval College: To assist the Visitor Experien...

    Telesales Manager. Paddington, London

    £45-£55k OTE £75k : Charter Selection: Major London International Fashion and ...

    Recruitment Consultant (Trainee), Finchley Central, London

    £17K OTE £30K: Charter Selection: Highly successful and innovative specialist...

    Day In a Page

    Noel Fielding's 'Luxury Comedy': A land of the outright bizarre

    Noel Fielding's 'Luxury Comedy'

    A land of the outright bizarre
    What are the worst 'Word Crimes'?

    What are the worst 'Word Crimes'?

    ‘Weird Al’ Yankovic's latest video is an ode to good grammar. But what do The Independent’s experts think he’s missed out?
    Can Secret Cinema sell 80,000 'Back to the Future' tickets?

    The worst kept secret in cinema

    A cult movie event aims to immerse audiences of 80,000 in ‘Back to the Future’. But has it lost its magic?
    Facebook: The new hatched, matched and dispatched

    The new hatched, matched and dispatched

    Family events used to be marked in the personal columns. But now Facebook has usurped the ‘Births, Deaths and Marriages’ announcements
    Why do we have blood types?

    Are you my type?

    All of us have one but probably never wondered why. Yet even now, a century after blood types were discovered, it’s a matter of debate what they’re for
    Honesty box hotels: You decide how much you pay

    Honesty box hotels

    Five hotels in Paris now allow guests to pay only what they think their stay was worth. It seems fraught with financial risk, but the honesty policy has its benefit
    Commonwealth Games 2014: Why weight of pressure rests easy on Michael Jamieson’s shoulders

    Michael Jamieson: Why weight of pressure rests easy on his shoulders

    The Scottish swimmer is ready for ‘the biggest race of my life’ at the Commonwealth Games
    Some are reformed drug addicts. Some are single mums. All are on benefits. But now these so-called 'scroungers’ are fighting back

    The 'scroungers’ fight back

    The welfare claimants battling to alter stereotypes
    Amazing video shows Nasa 'flame extinguishment experiment' in action

    Fireballs in space

    Amazing video shows Nasa's 'flame extinguishment experiment' in action
    A Bible for billionaires

    A Bible for billionaires

    Find out why America's richest men are reading John Brookes
    Paranoid parenting is on the rise - and our children are suffering because of it

    Paranoid parenting is on the rise

    And our children are suffering because of it
    For sale: Island where the Magna Carta was sealed

    Magna Carta Island goes on sale

    Yours for a cool £4m
    Phone hacking scandal special report: The slide into crime at the 'News of the World'

    The hacker's tale: the slide into crime at the 'News of the World'

    Glenn Mulcaire was jailed for six months for intercepting phone messages. James Hanning tells his story in a new book. This is an extract
    We flinch, but there are degrees of paedophilia

    We flinch, but there are degrees of paedophilia

    Child abusers are not all the same, yet the idea of treating them differently in relation to the severity of their crimes has somehow become controversial
    The truth about conspiracy theories is that some require considering

    The truth about conspiracy theories is that some require considering

    For instance, did Isis kill the Israeli teenagers to trigger a war, asks Patrick Cockburn