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British Airways today launched a new business-only flight from London City to New York as it tries to fight back from its worst ever financial crisis.
The airline, which announced record annual losses of £401 million last month, is to charge up to £5,000 return for a seat on the twice daily flights from London City Airport to JFK.
Billed as a “City-to-Wall Street” flight, the carrier is promising executives the most convenient connection between the two financial centres.
The cash-strapped airline has purchased two small A318 planes — that will carry just 32 high-paying passengers.
The moves comes as Virgin Atlantic celebrates the 25th anniversary of its first London-to-New York flight as a long-running bitter war of words between its president Sir Richard Branson and BA's chief executive Willie Walsh continued.
Sir Richard this weekend branded BA as practically worthless, amid reports that the Government could bail out the carrier. But today's announcement will be seen as an aggressive move by BA to win back first-class flyers.
London to New York has always been seen as the most lucrative business-class route in commercial aviation, but BA has lost ground to competitors including Virgin Atlantic and Delta.
Mr Walsh said today: “In the harshest trading environment airlines have experienced, we believe it is more important than ever to embrace the future and innovate. That is what this historic new route is all about. There is real enthusiasm from our customers for this project. This is BA at its best — stylish, British and ahead of the game.
“Every aspect of this service has been designed to maximise convenience for customers to fly between the world's two biggest business centres — Wall Street and London's extended financial district in the City and Docklands.”
BA has axed more than 2,500 jobs since last summer, frozen pay and offered unpaid leave, to cut costs.
The service will begin in September — shortly before BA ends its Gatwick to New York service. The move will end 25 years of flights between Gatwick and New York.
Tickets for the new twice-daily flights go on sale tomorrow — starting at about £2,000 for a non-refundable, non-transferable return flight on a Friday and going up to £4,900 for a more flexible, weekday return. But after suffering a major slump in passengers as firms slashed their travel budgets, BA has been reduced to offering two tickets for the price of one to passengers flying out of Terminal 5.
High-paying premium flyers have declined sharply across the industry.
But BA hopes that the convenience of getting to City Airport in Docklands will lure wealthy customers from Canary Wharf and the Square Mile.
The east London airport also openly touts itself as a “stress-free” alternative to Heathrow, where flyers regularly complain of long queues and lost baggage. Should the service be a success it will be viewed as a much-needed “green shoot” for the industry.
The small Airbus A318s are the largest aircraft that can be flown from City. All 32 seats on the plane convert to fully flat beds. Passengers will also be able to log on to a full internet service.
As the planes are so small, there will be a refuelling stop at Shannon in Ireland — where passengers will be able to clear US immigration.
BA bosses hope that a 15-minute check-in at City Airport and not having to queue for immigration at New York's JFK will cancel out the 45-minute refuelling stop, making it as quick as other transatlantic flights.
Reader views (23)
The reason the A318 has to stop in Shannon is that the runway at City is too short to enable the aircraft to take off with enough fuel on board to get to JFK. It is not a problem to fly the return direct from JFK to LCY as the runways at JFK are far longer.
Once you have worked out that you have to stop somewhere between LCY and JFK, Shannon is the obvious choice because you can clear USA Immigration in Shannon and subsequently arrive in JFK as, effectively, a domestic passenger and get out of the terminal very quickly.
- David The Pilot, Surrey, 25/06/2009 00:31
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I fly business class when I fly generally, as I don't like being squashed up at the back in economy, this is my only luxury and I don't intend to give it up. I gave up on Virgin Atlantic some years ago because the food was awful and I didn't like the seats. I don't like American Airlines their seat isn't great and so my options are limited and I fly BA as a result.
If I can get to the US for my holiday without having to go via LHR or LGW then I'm going to use this service, especially at only £2k for a flight. Being able to walk off the plane at JFK and just having to collect my luggage will be fantastic.
Why are people being so negative, this is a great idea and LCY is a great airport, not everyone flies economy you know and not everyone wants to go to one of the bigger airports where all they try and do is sell you stuff before you board your flight.
- Darren Smythe, London Docklands, 22/06/2009 17:07
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Breaking News..... Swine Flu found at London City Airport........
- Darren, Newham, 22/06/2009 16:57
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I like city airport, and it is certainly easier for me to get to from work and better than Heathrow (especially terminals 1 and 3) for getting onto the plane quickly. I'm hoping this is a real success.
If you have to have a meeting with someone in NYC face to face (and they can't all be done on the internet) then you have to actually get there or get them here. The fact that you wil be able to get there quicker, with immigration already cleared is a real bonus as that can take a long time when you arrive. It also means you can spend more time working, which is another major plus point.
- James, London, 22/06/2009 16:44
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Richard Branson's remark yesterday relating to hoping B.A went bust was nothing short of scandalous.He is NOT a man of the people wishing all those employees to be out of a job.Remember what goes around comes around.
- Harvey N Lawrence, London, 22/06/2009 16:42
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An A318 has ample range to fly London City to JFK nonstop, particularly if it only has 30 odd seats, however fully loaded with fuel it would be too heavy for the 5000 ft runway at city airport hence the stop in Ireland to top up the tanks, not a bad idea to use the time for the passengers for US immigration so they can walk right out the airport at JKF, with only 30 passengers it would be very quick. Shame they are not using a more central airport in NY though, I'm sure there is an executive airfield nearer Manhattan that could accommodate an A318. Overall though I’m sure it’ll be a huge success.
- Nj, London, 22/06/2009 15:53
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Since the days of Bob Ailing BA has never been on my list of carriers.This latest great idea just re-enforces why I do not use them.If you compare BA to most other airlines what is the fundamental differance?How they treat their customers.After years of airtravel[40+]the only airline which is head and shoulders above the rest as clearly the worst is ...yes you have got.....Willie's lot! Remember Willie the best way to run a small airline is to start with a big one!!!
- Tithonus, Athens Greece, 22/06/2009 15:48
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More Flights?
Every passenger who travels through this airport has to use this area and will be completely unaware of what they may be exposed to.
GMB believes that passengers and staff are being exposed to high levels of potentially toxic aircraft fumes, which could be harmful to the health of passengers and staff who pass through the airport arrivals hall.
London City Airport operates an extremely unusual parking system for aircraft arriving at the airport. They maneuver the aircraft so that the tail of the aircraft points towards the airport building, causing the jet engine’s exhaust to be propelled straight towards the arrivals lounge in the airport building.
This causes a high volume of uncontrolled exhausted jet fumes, which are expelled from the engines, to enter the international and domestic arrival hall. These fumes have at times overwhelmed the employees working in this area. Every passenger who travels through this airport has to use the area and will be completely unaware of the danger they may be exposed to.
GMB has written to London City Airport but they have refused to meet or take any action to alleviate the build up of fumes in the arrival lounge.
- Darren, Newham, 22/06/2009 14:47
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@ Michael James: The aircraft are too small and/or the runway is too short for takeoff westbound from LCY with full fuel loads, hence the refueling stop in Ireland.
The eastbound return is easier and faster because of longer NY runways and the Jetstream, which boosts speed and performance for all aircraft.
- Rob, Canary Wharf, 22/06/2009 14:42
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"I dont understand the theory behind stopping in ireland for a re-fuel"
Because an A318 doesn't have enough fuel to go from London to NY, and City airport can't cope with commercial aircraft that could do the trip in one go. So it needs to stop at the most westerly airport before the Atlantic. This is dressed up as an opportunity to complete US immigration.
- Nobby Clark, Perth, the Scottish one, 22/06/2009 13:59
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Have I missed something? how can they bypass immigration at JFK?
- Sam April, SW1, 22/06/2009 13:57
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To Michael James: refuelling in Shannon is necessary because the runway at City is far too short for a A321 with full fuel load to take off. So, they launch with enough gas to get to Shannon, then fill up the tanks and use the much longer runway there. Clearing immigration at Shannon makes the entire thing worthwhile. I will be using this service.
- Tim, London, Docklands, 22/06/2009 13:49
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...less fuel load for take off perhaps ?
Anyway until BA make their prices more competitive I for one cannot see their transatlantic businss pick up
- Dixon Kipretich, Ugley, Essex, 22/06/2009 13:33
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With every company now striving to save money on travel, how does willie walsh expect to sell this outrageously expensive (and slow) service?
No wonder BA is in dire straits.
Business class air travel is finished for the forseeable future.
Unless BA start to compete on price, they're doomed.
- Malcolm, London, 22/06/2009 12:54
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If only the BA on-board service was better. They are not so good anymore!
- Steveo, London NW1, 22/06/2009 12:54
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I dont understand the theory behind stopping in ireland for a re-fuel?
surely its like driving from London to Edinburgh but stopping to refuel at Watford.
- Michael James, SW1, 22/06/2009 12:35
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Having flown both a number of times to NY and back, to BA you are no more than a bum on a seat and money in the bank. To Virgin you are treated as their most important customer each time. Quality is something BA never has had and never will under this morons reign.
- Steve, London, 22/06/2009 12:19
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Would make only sense since they clear customs in Ireland to use La Guardia Airport instead of JFK.
- Peter, New York, 22/06/2009 11:24
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Having to stop over at Shannon is also I think a negative (adds an extra what, three hours?) albeit clearing immigration there is less painful than doing it in JFK with every other Tom, Dick and Hazood.
- J. Melvin, London, 22/06/2009 11:02
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The main problem British Airways has is their service levels are not uptodate anymore. Staff feels to important to assist passengers and they are definitely too unfriendly.
- Georgie, Islington, London, 22/06/2009 10:58
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As MD of a worldwide organization I have given written instructions to all our executives to travel at the lowest and most economical cost..our organization will not be lured into above average costs,and therefore it seems that after speaking to many business colleagues nor will many of my business associates...BA should be looking to trim the ''fat''that they have accumulated over the years,before embarking on new products such as this.This is a time when every single business is seeking
to reduce their cost efficiently,but it seems that the so called BA TOP BRASS,have their heads in the clouds,wake up before it is tooooo late,or BA will be even in a larger mess in 12 months time
- European, Hong Kong China, 22/06/2009 10:49
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Have they not learnt ANYTHING.
They concentrated on the Business and First Class market which ended up with £401million loss! I cant wait to see what happens in the next 12 months.
Its a simple fact of life that business has changed. No longer is it acceptable to continue to take business class flights and many companies will now only pay for standard class in order to cut costs. This is a BIG mistake for BA who appear to be intent on bringing the entire company down.
- Katie Price, Sussex (& Ibiza), 22/06/2009 09:59
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What planet is Walsh on??? As a result of the economic crisis most companies have banned all but essential travel and if travel is required most people have to fly economy!! He needs to adopt a more strategic approach and reduce extortionate leisure fares! I have flown 3 time to NYC in the last few months, twice in business and once economy - the upper deck in business class had one other person on one occasion and economy was half empty!!!!!
- Stephen, City, London, 22/06/2009 09:42
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