- Revenue passenger: 9.1 million, -6.5%;
- Enplaned passengers: 11.5 million, -4.7%;
- Passenger load factor: 81.3%, -2.9ppts;
- Average sector length: 1007 miles, +4.8%;
- Number of flights: 112,448, -4.0%.
Southwest Airlines Co pax down 7%, load factor also down in Aug-2013; PRASM up 4%
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All-premium UK-US airlines. BA cuts LCY frequency; La Compagnie quits LTN; Odyssey to launch in 2017
There have been two notable recent developments in the market for all-business class services on the North Atlantic: British Airways is to reduce its London City-JFK A318 frequencies and France's La Compagnie is to withdraw from Luton-Newark to concentrate its 74-seat Boeing 757 operations on Paris-Newark (its only other route).
BA's 32-seat London City operation has been suffering from significant load factor declines, particularly on the outbound flights. These flights make a refuelling stop in Shannon, where passengers can pre-clear US customs, but this may not be a sufficient incentive for some passengers to take an indirect flight. La Compagnie expressed concerns about uncertainties in the UK post-Brexit, but its route economics must anyway have been struggling, due to Luton's lack of suitability as a premium market and its lack of feed.
So far there has been no reaction to these developments from the new-start Odyssey Airlines, which plans to launch an all-business class London City-New York service in 2017. It will no doubt be attempting to find a balance between relief that its level of competition has reduced, and some anxiety that its launch may coincide with a softening of market demand.
"Too little competition in the American (airline) market". EU head: US consolidation goes too far
At the ACI 26th General Assembly in Athens on 21-Jun-2016 the European Commission's DG Competition Henrik Mørch said that the EC has generally approved JVs but is closely watching consolidation trends. As reported in a CAPA news brief, Mr Mørch said that the EC is interested in how much consolidation can be justified with efficiency gains for the consumer.
He added that, while the European aviation market is more fragmented than the American market, taking the level of consolidation that exists in the US and applying it to Europe is "not necessarily something we would advocate for...there's too little competition in the American market in our view".
However, the level of concentration on the North Atlantic, the principal market where JVs have been approved by the Commission, is greater than in North America – the market that Mr Mørch considers too concentrated. Meanwhile, European fragmentation weighs heavily on its airlines' yields and holds back their profitability.