http://uk.biz.yahoo.com/21062007/325/low-cost-london-flights-arrive-new-york.html
Low-cost London flights arrive in New York
NEW YORK (Reuters) - Zoom Airlines, a low-cost Canadian carrier, began
non-stop flights between New York and London on Thursday, challenging
major airlines on lucrative transatlantic routes.
Zoom, which began operating transatlantic flights between the United
Kingdom and Canada in 2003, is offering daily flights between New
York's John F. Kennedy International Airport and London's Gatwick
Airport for as low as $199 (100 pounds) each way, excluding fees and
taxes.
That is significantly lower than fares generally available from major
carriers such as British Airways Plc and Delta Air Lines
Inc.. A round trip ticket in mid-July runs about $800, or $400
one-way, according to a search on travel Web site Expedia (NASDAQ:
EXPE - news) .
The savings Zoom offers are somewhat mitigated by its use of only one
aircraft on the New York-London route, which make passengers more
vulnerable to delays and cancellations, said Terry Trippler, an
airline expert who operates travel club Tripplertravel.com.
"Under normal conditions, United (Airlines) or American (Airlines)
would be a better deal," Trippler said.
Both airlines offer similar flights for $50 or $100 more.
Low-cost carriers have made a huge impact in the airline industry,
with carriers such as Ryanair Holdings Plc (Dublin: RY4.IR - news)
and Southwest Airlines Co. taking market share and
dragging down air fares. But they have generally focused on domestic
or short-haul routes so they could increase frequency.
Traditional network carriers in the United States have in recent years
expanded their international service in part to escape low-cost
competition domestically.
Start-up transatlantic service has generally focused on all business
class flights. And it remains to be seen whether the low-cost model
can work for international traffic, where comfort plays a bigger role.
But Zoom claims it works.
"We've been successful in the Canada to UK (market), so we're bringing
the low-cost, long-haul model into the U.S.," said David Clements,
vice president of sales and marketing.
He said the carrier is able to offer lower fares because it makes sure
planes fly at 85 percent to 90 percent capacity -- which is typically
fuller than rivals.
Also, the relatively new company is not burdened with unions and other
expenses like the "legacy carriers," he said.
Economy class tickets can run as high as $399, depending on demand and
season, but 20 percent to 25 percent of the seats will be available
for the base fare, said Clements.
Slightly roomier premium seats are available for an additional $179
one way. Premium passengers are also entitled to express baggage claim
and check in and an open bar.
All Zoom passengers receive a meal, snacks and in-flight entertainment
included in their fare.
The low-cost carrier is hoping to expand its routes in the United
States to one or two other cities, such as San Francisco or Boston
within the next year, Clements said.
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