# Possible London to NY Airfare Price War?



## medwards (Feb 6, 2005)

https://business.timesonline.co.uk/tol/business/industry_sectors/transport/article1464510.ece


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## Karl89 (Feb 20, 2005)

Medwards,

This is good news for several reasons though perhaps not for AA, BA, VS and UA monopoly. 

First it may but some pressure on Business Class fares on the NYC-LHR route, typically if you want to fly VS, BA, AA or US you are looking at a fare in excess of $7000 USD return - which no matter how much champagne they give you is about $3000 too much for a six hour flight.

Second its great news for AA Advantage members bc it will now be likely that AA and BA will be able to codeshare on transatlantic flights (currently prohibited bc of antitrust issues) and that you will be able to earn AA miles on BA transatlantic flights. And if you have your druthers you will wisely choose BA's inflight product over AA, especially in the premium classes.

But before we all start anticipating a fare war lets consider a few things:

1) Heathrow is slot restricted bc its near capacity so unless Continental or Delta or Northwest (the British BMI already has LHR slots) can buy their way into LHR they will still ply the London Gatwick route. Even if they can find some slots for LHR, they will command a real premium. Plus Continental, Delta and Northwest are in Skyteam and LHR is not a Skyteam hub so the utility of flying into LHR over LGW is not that great. 

2) Some of the capacity on the LHR market is supplied by stopovers from other non-European carriers, namely Air India. With the advent of the 787 and A-350 such stopovers will not be required and that capacity will taken offline. 

3) While LHR is a bit more accessible to central London than LGW is, both are a nightmare by cab (not to mention outrageously expensive) and carrying luggage on the Heathrow or Gatwick Express is no fun. London's best airport is in the middle of London proper! Of course I speak of London City (LCY). All the airlines clamoring for LHR access should begin an all business class service (where all the money is anyway) from NYC to LCY. Lufthansa, Swissair and KLM all currently offer all business class service on modified 737-700s and A-319s. The only problem might be, as only who has flown out of LCy can attest to, is that LCY has extremely short runways - from the air it looks as if you are landing on an aircraft carrier, only with a shorter flightdeck!

So all in all good news and perhaps slighly lower fares but for all you extreme bargain hunters out there - sorry but Sir Freddi Laker has left the building!

Karl


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