British Airways is planning a summer launch for its new US-EU subsidiary, OpenSkies, with the first daily flights from New York to Brussels or Paris. Services, starting in June, will be maintained initially by a single Boeing 757. A second aircraft will be added to the fleet later in the year to fly to the other EU destination and the plan is to operate six 757s by the end of 2009, all of which will be sourced from the current British Airways' fleet. The aircraft will be configured to carry up to 82 passengers in three cabins: Business, Premium Economy and Economy. Says BA's chief executive Willie Walsh: "By naming the airline OpenSkies, we're celebrating the first major step in 60 years towards a liberalised US/EU aviation market, enabling us to fly between any US and EU destination. It also signals our determination to lobby for further liberalisation in this market when talks between the EU and US take place later this year." OpenSkies' Business Class cabin has 24 seats that convert into 6ft flat beds. There will be 28 Premium Economy seats with a 52in pitch and 30 in Economy. OpenSkies' managing director is Dale Moss, BA's former director of worldwide sales, and the airline is registered in the UK. It will shortly file an application for the necessary regulatory approval in the US and UK. (www.flyopenskies.com) At the same time, Virgin Atlantic is reported to be postponing the launch of its Business-only carrier, citing "uncertainties" surrounding the new open skies deal. All-Business class casualty
The first major casualty among the new breed of all-Business Class carriers occurred last month with the demise of MAXjet. The airline, which operated from New York, Washington, Los Angeles and Las Vegas to London Stansted, filed for bankruptcy just two days before Christmas. In a statement, it attributed fuel price inflation, other operating cost increases, competitive pressure and decline in consumer spending as the principal factors for its failure. "In addition, a substantial deterioration in financial market confidence has precluded any further fundraising," it added. Earlier in the month, the AIM-listed company, valued at £100 million (US$195 million) when it was floated in 2006, suspended trading of its shares. Prior to its collapse, MAXjet contracted and pre-paid Eos Airlines for approximately 500 seats on its all-premium service to accommodate passeng-ers awaiting a return flight between New York and London. It also contracted and pre-paid for 450 hotel rooms in London, New York, Las Vegas and Los Angeles until early January 2008 for those whose travel plans had been disrupted. Air France/KLM acquires VLM
VLM, the largest carrier at London City Airport, will continue to operate as a separate entity following its acquisition by Air France/KLM. The Antwerp-based regional carrier, with a fleet of 18 Fokker 50s and a single BAe146, will, however, "actively cooperate" with Air France subsidiary CityJet, which also operates at LCY. "Both networks are highly complementary and the new combined network will link London City with major European business and financial centres," says CityJet chief executive Geoffrey O'Byrne-White. "We see this as a great opportunity to expand and to offer an optimal product to our customers." Adds Johan Vanneste, managing director of VLM: "The cooperation with CityJet will create value for our customers, as this transaction will ensure them access to the largest number of destinations from London City Airport." VLM, established in 1993, currently operates flights from London City to Amsterdam, Antwerp, Brussels, Groningen, the Isle of Man, Jersey, Luxembourg, Manchester and Rotterdam. Direct flights are also offered from Manchester to both Antwerp and Rotterdam, from Rotterdam to Hamburg and from Amsterdam to Groningen. Seasonal direct flights are operated during the summer from Rotterdam to Jersey and Guernsey. In October, one year after the launch of its VLM Encore loyalty programme, the airline had 35,000 members signed up.
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