The early shoots
may be showing – but we’re still a long
way from full bloom.
It is an analogy I like to use when talking about the
state of air travel between Britain and the United States.
For more than 50 years now, such travel has been governed
by archaic regulations which restrict competition and
keep fares artificially high.
From many European cities, in those countries which
have signed “Open Skies” agreements with
the US, you can fly business class across the Atlantic
for anything up to a half of what you pay from London.
From this barren landscape, my airline has been trying
to cultivate a more fertile environment.
Our campaign to open up Heathrow’s transatlantic
routes to competition is now entering its fourth year.
We have attracted tens of thousands of supporters –
from business travellers, to trade associations, to
MPs and the media. These are people who have quickly
grasped the penalising effect on business, and on trade
between our nations, that the current restrictions bring.
It’s easy to understand why we have not convinced
the UK airlines that operate those routes; the huge
contributions to revenues that these high fares bring
is pretty compelling for them, despite their public
statements about their commitment to free and open competition.
And despite similar noises of support, I fear we have
not yet convinced the UK Government sufficiently.
As ever, I am confident justice will win in the end;
but as ever, I continue to be dismayed by the lethargy
and inertia that inhibit our efforts.
I get particularly frustrated because air fares seem
to get ignored in a way that the cost of other products
and services do not. In recent years we have seen major
outcry, and in many cases Government investigations,
into the high UK prices of everything from batteries
to CDs to cars. In fact, business travellers deliver
huge streams of income to our country through development
of trade links. It is true that the US is already our
largest trading partner – but there is much room
for growth, if business could afford to travel there
more often.
Despite these blockages, we continue to push for new
competition because we believe it brings real benefits.
And towards the end of last year, we have seen the first
early buds that suggest more fruitful growth can and
should happen in the future.
How? We will, in June this year, have completed two
years of operations on our services from Manchester
to Chicago and, during the summer months, from Manchester
to Washington. These services represent the first new
significant choice for business travellers to the States
for decades. Despite having to face competition from
an incumbent carrier – American Airlines –
on services from Manchester to Chicago, we are now the
biggest carrier on the route. A clear message, if ever
one was needed, that the new level of service and the
wide range of fares we have brought to travellers to
the US is a winner.
It has marked a significant investment by our company,
in new aircraft, additional bmi facilities and staff
at the three airports, and significant marketing support
to launch and sustain the routes. It is an investment
that no one else is matching in terms of long-haul scheduled
services from regional airports. Most travellers do
prefer to fly from Heathrow and no other airlines offers
regional transatlantic scheduled services in isolation;
all the others use them to complement their London-based
operations.
But nevertheless, the reaction to that investment, and
to the services that we now operate, has shown that
new choice does lead to real improvements.
Independently-conducted research amongst business travellers
put the new bmi flights as the only “five-star”
services across the Atlantic, well ahead of the services
offered by all our longer-standing competitors.
A range of innovations, including the only in-flight
chefs on transatlantic services, state-of-the-art entertainment
systems and our premium economy cabin, have been welcomed
with open arms by our customers.
But despite our successes from Manchester to the 40
onward destinations within the US we serve through our
code-share with United Airlines, we know that it is
only a start. We know we won’t make real progress
until we can offer those services from Heathrow too.
Most travellers want to fly from London; any regular
travellers reading this will know just how limited choice
is between UK carriers on the London-US routes.
If you don’t, let me enlighten you. On each route
from Heathrow, the UK airlines “competing”
with each other charge exactly the same published business
fares – the fares that are so much higher than
their Europe-US equivalents.
We will continue the fight for new competition. While
we do so, you might take the opportunity to try our
services from Manchester. I am convinced that if you
do, you will enjoy something truly new – and truly
outstanding. I am sure you become an ardent supporter
of our campaign.
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