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Old 02-01-2007, 07:16 AM   #1
tdew
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Default Cheaper London route coming? from Smarter Travel

I saw this on Smarter Travel and it sounds really interesting. Is anyone familiar with the Airline Zoom Airlines?

Low-fare carrier eyes New York-London route

Posted January 25 at 4:40 pm ET by Josh Roberts
Canadian low-fare carrier Zoom Airlines wants in on the popular New York-London route, according to a Travel Weekly report (registration required). The airline wants to begin daily low-fare transatlantic service between JFK and Gatwick beginning June 7.



The New York-London route has been well served over the last year by new luxury- and business-class carriers Eos and MaxJet, but this would be the first (to my knowledge) legitimate low-fare carrier to fly between these two cities. The move could have a dramatic ripple effect on the major domestic carriers that are increasingly relying on low-competition international routes to fatten their bottom lines.
In other words, if granted approval, Zoom Airlines could provide a low-fare alternative for U.S. travelers heading overseas. You can bet the legacy lines won't like the idea one bit, but me—I think it's a winner.
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Old 02-01-2007, 04:40 PM   #2
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What with Virgin America announcing that it hopes to start service soon to major gateways like JFK, LAX, and Vegas, you might see them come up with deals to feed in to Virgin Atlantic as well.
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Old 02-01-2007, 09:36 PM   #3
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I see a "Freddy Laker" big tank in the future for this venture. I wouldn't be purchasing tickets in advance on any budget carrier servicing that route. New York/London is already a hugely discounted market even with the big guys with all of the affinity (frequent flier) programs, domestic feeder routes and full service perks.

Case in point? The base rate (pre-tax and government fees) in that market runs from $168.00-190.00 round trip right now, even as low as $436.00 next summer. Realistically, that's below the cost of providing the service to the consumer. It's like a loss leader sale product offered by major retailers.

If the carrier doesn't have more profitable routes to offset those losses, it's going to be short lived. I've seen a lot of them come and go over the past few decades, often leaving passengers stranded and out their investment, however modest it may have been.
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