Stansted looks beyond Ryanair to add touch of class from Gulf

People disembark from a Ryanair flight to board a bus at Stansted Airport in London. Emirates planes will also soon become a familiar sight at the airport that is better known for the budget end of the aviation business. (Reuters)
Updated 29 December 2017

Stansted looks beyond Ryanair to add touch of class from Gulf

LONDON: The London airport best known for budget travel is targeting the big carriers of the Middle East for its next phase of growth.
A plan unveiled by Dubai-based Emirates last week to launch a new daily air service between the emirate and Stansted Airport from next June marks a breakthrough in the campaign by London’s third airport to attract more long-haul carriers.
Best known as a base for Europe’s short-haul budget airlines, Stansted will also see two low-cost carriers start trans-Atlantic services from the airport next year.
But the launch of Emirates’ service to Dubai will greatly extend Stansted’s global reach across the Middle and Far East and add to its appeal for business travelers, particularly those visiting the nearby Cambridge-Oxford high-tech corridor.
“It’s a really strong development for Stansted,” said air transport consultant John Strickland of JLS Consulting. “It puts them on the worldwide map with Emirates’ direct access to the Gulf, Asia and Africa. It also reflects the growing strength of Stansted’s business catchment area.”
The new Emirates service also recognizes that with Heathrow and Gatwick airports operating close to capacity, Stansted is one of the few entry points to Britain’s prosperous South East region where there is still scope for airlines to expand.
Emirates will operate its new three-class Boeing 777-300ER aircraft on the new service, largely outside the budget airlines’ peak hours. Landing charges at London Stansted also tend to be significantly lower than at Heathrow.
Although it has a single runway, London Stansted currently handles around 26 million passengers a year but has planning permission to expand to 35 million and ambitions to grow to 43 million by the late 2020s.
Located some 39 miles north of the city in Essex and with a 47-minute express rail link to central London, Stansted is building a new £130 million ($175 million) arrivals terminal and a new £11 million aviation skills college.
As well as business travelers across north east London, Emirates’ new service is targeting around 7.5 million people living in the Stansted catchment area who currently have to travel to Heathrow or Gatwick via central London or on the city’s congested M25 outer ringroad.
According to the airline, Hong Kong, Dubai, Shanghai, Singapore and Mumbai are the most popular business destinations from the East of England which Emirates serves through Dubai.
At CAPA — Center for Aviation, chief airports analyst David J. Bentley sees Emirates’ new service from Stansted as very significant.
He said: “This service is long-haul, full-service and eastbound, killing three birds with one stone. And there is no reason why Emirates could not extend it into a Middle East-Europe-North America service as it has done selectively with other routes via Milan, Athens and Scandinavia though there is no evidence it will do that. It is also daily; business travelers do not like long-distance services that are less than daily.”
For Middle Eastern travelers, the new service will provide a convenient entry point close to the Oxford-Cambridge corridor which is home to a cluster of “knowledge-based” tech businesses and where the UK government is targeting new infrastructure investment, including a rail link.
Emirates said that more than 25 of the world’s largest corporations — including Airbus, Astra Zeneca and GSK — have operations in the wider Cambridge and Peterborough area, close to Stansted.
Laurie Berryman, who is responsible for Emirates’ UK operations, said the service would also prove useful to the new startups and existing SMEs which form a growing section of the Cambridge business community.
Stansted’s growing cargo operation will also be significant for the airline’s freight division, Emirates SkyCargo. Rival carrier Etihad Cargo is now also operating from Stansted and this time last year used the airport to ship 72 racehorses from England to Kuwait for the winter.
Other airlines have also viewed Stansted as a gateway to the Middle East. Turkish carrier Atlasglobal launched a new daily flight from Stansted to Istanbul toward the end of 2016 which allows passengers to connect to onward flights to Dubai.
London Stansted’s position in the long-haul sector should also benefit from the launch of other new services. From next April, Danish airline Primera Air will start offering daily flights from Stansted to New York’s Newark Airport and four times a week to Boston Logan in May using its Airbus A321 NEO aircraft. Primera Air is also launching a new direct service from Stansted to Toronto from next June.
Announcing these plans recently, London Stansted CEO Ken O’Toole said: “We have the ambition and runway capacity to enable us to offer more flights to more destinations across North America, the Middle East and further afield and satisfy the growing demand from businesses and passengers across the region to fly long-haul from their local airport.”
Meanwhile, low-cost Iceland airline WOW air is also planning to launch a new service from Stansted to New York JFK via Reykjavik from next April with fares starting at £99 one way.

Airbus sees regional demand for A220

Updated 18 July 2018

Airbus sees regional demand for A220

  • Airbus acquired a majority stake in the C-Series program in October officially rebranding it in April to the A220
  • The US low-cost carrier JetBlue last week became the first purchaser of the aircraft since its rebrand

FARNBOROUGH: Airbus Chief Commercial Officer Eric Schulz has played up the prospects for the Bombardier C-Series aircraft in the Middle East and beyond, hoping carriers will use the single-aisle plane to expand routes.

The European plane maker acquired a majority stake in the C-Series program in October, officially rebranding it in April to the A220, strengthening its offering in the smaller jet sector in competition with arch-rival Boeing.

“Yes, I believe we’ll see orders in every region,” Schulz said when asked about the prospects for Middle Eastern orders for the plane.

“There are many people across the Middle East who are looking at the opportunity to integrate the A220 as a feeder to leverage their routes up to a point where maturity can be on with the single aisle.”

Schulz spoke to Arab News on the second day of the UK’s Farnborough International Airshow, which marked the rebranded A220’s first public appearance.

The US low-cost carrier JetBlue last week became the first purchaser of the aircraft since its rebrand, with an order for 60 of the single-aisle planes.

Airbus on Tuesday announced a commitment from what it described as “a new US airline startup” for 60 A220-300 aircraft, with deliveries due to begin in 2021.

The new airline is backed up by a group of experienced investors led by JetBlue founder David Neeleman, who is also an investor in TAP in Portugal and the controlling shareholder in Brazil’s Azul airlines.

The single-aisle market is expected to dominate commercial plane orders over the next 20 years, according to forecasts released by Boeing on Tuesday.

The US manufacturer expects demand for 31,360 single-aisle planes — representing nearly three quarters of total orders — over the period, an increase of 6.1 percent compared with similar forecasts published last year.

“This $3.5 trillion market is driven in large part by the continued growth of low-cost carriers, strong demand in emerging markets, and increasing replacement demand in markets such as China and Southeast Asia,” Boeing said.

In the face of such growth prospects, Boeing earlier this month agreed to takeover the commercial jetliner business of Brazil’s Embraer, a specialist in smaller passenger planes, in order to better compete better with Airbus in the segment.

Schulz downplayed suggestions of a downturn in orders from Middle East carriers, suggesting that any slowdown in orders from the region’s larger players would come alongside an uptick from other carriers.

“There might be a little bit of a slowdown for some airlines, and there is also some growth for others,” Schulz said.

“We are serving the market, and what we need to do is just continue to serve the market and take the opportunities and the challenges where they are and just deal with them.”

Schulz said that Airbus was “moving forward” with the details of its $16 billion A380 deal with Emirates struck in January.

The deal with the Dubai-based carrier for 36 additional superjumbo planes, the last major deal agreed by Schulz’s predecessor John Leahy, was seen as saving the beleaguered aircraft program, which has struggled to secure new orders.

“Clearly the relationship is fantastic,” Schulz said, having met with Emirates CEO Tim Clark on Monday.

“Clearly they have put a lot of emphasis on the opportunity that their A380 fleet is giving them. They need the plane, we need the plane to be delivered, and yes, it’s all aligned.”