Business class airfares drop on transatlantic routes

Following the increase in competition on transatlantic routes between London and the US, due to the new “open skies” policy, business-class airfares have seen a drop of as much as 25 per cent.

The policy came into force on 30 March of this year, and permits all EU-based carriers to fly from any city in EU member countries to any US city – and gives US-based airlines the same access to airports in the EU.

Before the “open skies” policy opened up competition, the only airlines allowed to fly between London’s Heathrow Airport and airports in the US were American Airlines, British Airways and Virgin Atlantic.

According to an American Express travel report that will be published in October, the average business-class fare on transatlantic services between London Heathrow and New York Newark Liberty decreased by 24 per cent, and on service from London to both Los Angeles and Seattle, fares dropped by nine per cent.

These fare reductions have been seen despite the record-high price of jet fuel and record-high fuel surcharges.

The “open skies” agreement has had the greatest impact at Heathrow Airport, which has seen new services launched by carriers from both sides of the Atlantic Ocean.

Air France and Delta Airways have formed an alliance to fly twice-daily service connecting London Heathrow with New York JFK, and daily service to both Atlanta and Los Angeles. US Airways operates daily service between Heathrow and Philadelphia.

www.americanexpress.com