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Upstart Airlines Offer Low-Fare Alternatives to Europe

By Dan Schlossberg
ConsumerAffairs.com

July 20, 2007

Low-cost European airlines are springing up like mushrooms, hoping to do for international travelers what JetBlue, Southwest, and AirTran did for the U.S. domestic market.

Coming soon is FlyGlobespan, based in Scotland but about to provide daily service between New York (John F. Kennedy International) and Liverpool, with additional service to Ireland (Knock).

Zoom, a subsidiary of an existing Canadian discounter, will zoom between New York’s John F. Kennedy International and London’s Gatwick airport.

Unlike the British-based Zoom, Eurofly already links the U.S. to the continent, flying between JFK and several Italian cities, including Rome and Milan.

Eos, Maxjet, and Silverjet link London to New York, offering business-class service at half the usual price, while a French newcomer named L’Avion does the same between New York and Paris.

Several "holiday lines" offer seasonal low-fare service over the Atlantic.

LTU connects Germany to New York and other U.S. cities during the summer but regular service between Germany and the Florida cities of Miami and Fort Myers. Condor also offers Germany-Florida service, while Martinair flies from Florida to Amsterdam and both Thomsonfly and Flythomascook link the Sunshine State with the United Kingdom.

Most flights originate in Miami or Orlando but some start at under-used Orlando Sanford International.

Consumers will also find cheap new alternatives over the Pacific. Oasis, one of the newest kids on the block, already flies from its Hong Kong base to London but will soon add service to Vancouver, B.C. and later to Chicago and Oakland. A few other discounters are on the horizon.

The explosion of low-cost startups is forcing established carriers to scramble for customers.

American, Delta, United, Lufthansa, and British Airways have all announced plans to turn business-class cabins into flying hotels, complete with better food, better entertainment, more legroom, and even seating that converts to lie-flat beds suitable for snoozing.

Although such radical upgrades may cost $2 million per plane, the carriers have little choice: last-minute, business-class tickets for overseas flights sell for $10,000+ and generate 30 per cent of international ticket revenue even though premium passengers occupy just 10 per cent of the seats.

Rising revenue from international flights is the major reason that airlines reported an overall profit for the first two quarters of 2007. Airlines aim to keep that revenue coming.

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