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You are here: Home  >  Travel Magazine  >  Executive Travel  >  News Briefing  > Faster crossChannel rail services pose new threat to airlines 091007.
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Faster cross-Channel rail services pose new threat to airlines



October  2007

Airlines are bracing themselves for a further decline in market share on the London-Paris and London-Brussels routes when the UK’s new high-speed rail line enters service on November 14.

It coincides with Eurostar’s switch from Waterloo International to the newly restored St Pancras station and will see journey times between London and the continent reduced by around 20 minutes. With cruising speeds of 186mph, the fastest trains will complete the journey to Brussels in 1hr 51min, to Paris in 2hr 15min, and Lille in 2hr 20min. Trains making one or more stops en route take only a few minutes longer. Frequency is also increasing, with the number of weekday services on the London-Paris route up from 15 to 17, although the frequency of 10 weekday services to Brussels remains unchanged. For the first time it will be possible to arrive in either capital before 09.00.

Airlines, which have seen passenger numbers dwindle on these key routes, are finding it increasingly hard to compete. The rail service not only offers city-centre to city-centre convenience, but faster overall journey times when check-in times and travelling to and from the airports are taken into account. There are no longer any flights between Gatwick and Paris and bmi earlier this year suspended its services from Heathrow to Paris CDG, blaming increased competition from both airlines and high-speed trains.

Eurostar’s move to St Pancras also extends the catchment area for travellers to the north of London, which is likely to have a further impact on the airlines.

The new London terminal is a magnificent restoration of a Victorian masterpiece of engineering for the Midland Railway. While Eurostar has a two-tier business lounge running along the east side of the station, all passengers can use a range of quality catering and retail outlets. Searcy, which provides catering at Covent Garden’s Royal Opera House, is opening a Champagne bar called 1868 (the year the station opened), claimed to be the longest in Europe at over 90 metres; a 10,000ft2 all-day brasserie; a casual bar and café open from breakfast until late,  and a private dining room for hire.

In 2009, the former Midland Hotel will reopen as the 245-room Renaissance St Pancras, complete with two restaurants, two bars, a health and leisure centre, business centre, ballroom, function room and eight meeting rooms.

Heathrow’s Terminal 5 on target to open in March next year

London Heathrow’s fifth terminal, on schedule to open on March 27, is currently undergoing a series of trials to test every aspect of the new facility.

The largest free-standing building in the UK and its two satellites – one of which is the same size as Terminal 4 – will absorb 30 million passengers from the existing terminals, easing congestion at the world’s busiest international airport. The second satellite is not due for completion until 2010.

Airport authority BAA has enlisted 15,000 volunteer ‘passengers’ to conduct the trials, with teams following arrival and departure routes, ensuring that signage is clear and in the right place.

The vast complex has 60 aircraft stands for use exclusively by British Airways.  The development also involves extending the London Underground and Heathrow Express lines, has provision for future rail access from the west, and includes a new control tower.  An automated transit system connects the main terminal to the present satellite.

All the major construction work is virtually complete and builders have moved on to fitting out interiors and shops. Retailers already signed up include Harrods, Paul Smith, Tiffany and a Gordon Ramsay restaurant. BA will have six lounges for premium customers and a 600-room Sofitel is attached to the terminal by walkways.
When the T5 complex opens BAA will take the opportunity to redevelop T3 and modernise T1 and T4. It already has planning permission to replace T2 and build a new environmentally-efficient terminal to be called Heathrow East.

Improved security

Heathrow’s Terminal 5 will feature the latest hi-tech security screening equipment as part of a £20 million, 10-year deal with Smiths Detection.

The multi-view X-ray inspection system will automatically detect and pinpoint explosives, as well as liquid substances in carry-on baggage.

As with the rest of the new £4.3 billion terminal the machines are currently being tested, and will be rolled out to the airport’s existing four terminals, and to BAA’s seven other UK gateways.

Code-share benefits

Regular travellers flying with Air Astana, Kazakhstan’s flag carrier, can now enjoy the benefits of the Miles & More frequent flyer programme following the signing of a code-share agreement with Lufthansa.  

From the new year, customers of both airlines can take advantage of a coordinated flight schedule as well as an extended offer of flights between Germany and Almaty and Astana. In addition, Lufthansa passengers will enjoy better onward connections within Kazakhstan and Central Asia.

For the passengers of Air Astana, the cooperation extends to improved connections to the worldwide Lufthansa network.  Miles & More members can already collect miles on various Air Astana routes, including its twice-weekly service between Heathrow and Almaty.

UK in danger of missing out

Congestion and delays at the UK’s busiest airports are prompting multinational companies to consider other European hubs, according to a study by the Association of Corporate Travel Executives (ACTE).

A poll of senior travel managers carried out in August revealed that 80% of multinational companies are anticipating holding airport meetings in hubs outside the UK, such as Frankfurt or Schiphol.

Meanwhile, 60% are looking at using travel alternatives – such as real time teleconferencing - to reduce internal corporate travel. The remaining 40% said they are considering such measures.

Asked what is to blame for delays at British airports, 60% of respondents said they were down to a mixture of outdated facilities, the high volume of traffic and poorly conceived security measures.

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