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Mon 21 Mar 2011 09:47 AM

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Emirates, Etihad squeeze BA with Manchester strategy

Gulf carriers are pouring capacity into Manchester airport in bid to win Asian traffic from BA's Heathrow hub

Emirates, Etihad squeeze BA with Manchester strategy
British Airways scrapped long-haul flights from Manchester in 2008, opting to route people through Heathrow, Europe’s busiest airport,
Emirates, Etihad squeeze BA with Manchester strategy
Emirates Airlines chief executive officer Sheikh Ahmed bin Saeed Al Maktoum
Emirates, Etihad squeeze BA with Manchester strategy
Emirates says the small engine fire was quickly extinguished. (Photo for illustrative purposes only)
Emirates, Etihad squeeze BA with Manchester strategy
Emirates, Etihad squeeze BA with Manchester strategy
Emirates, Etihad squeeze BA with Manchester strategy
Qatar Airways_full

Emirates, Qatar Airways and Etihad, the biggest Arab carriers, are pouring capacity into the north English city of Manchester to win Asian traffic as British Airways funnels passengers via its crowded London Heathrow hub.

Emirates, the largest international carrier, said March 9 it would add a third daily flight to Dubai starting May 1 after existing services featuring an Airbus SAS A380 superjumbo were consistently full. The announcement came within days of Qatar and Etihad saying that routes from Abu Dhabi and Doha will go double daily from Aug. 1 and June 1, respectively.

British Airways scrapped long-haul flights from Manchester in 2008, opting to route people through Heathrow, Europe’s busiest airport, on nine daily shuttles.

The UK company says it has no plans to revise the model, even though 13 scheduled carriers including Delta Air Lines, Continental Airlines and Singapore Airlines offer long-haul services from the airport, which claims a catchment of 20 million people.

“Our clients prefer flying from Manchester, so we’re very pleased with the new routes,” said Irene Hulme, who runs Travel by Design, a luxury travel agent in Alderley Edge, five miles from the airport. “People think twice about going via Heathrow. On some routes you can have a very long wait, which they find frustrating.”

Manchester was the busiest British airport outside London last year, attracting 17.6 million passengers, or 8.4 percent of the national total. That compares with 22 million in 2005, before the reduction in service by BA and UK rival British Midland or BMI, now owned by Deutsche Lufthansa AG. Heathow handled 65.9 million passengers last year.

The airport, privately managed on behalf of its owners, the 10 boroughs of Greater Manchester county, estimates it will boost passenger numbers four percent this year, Chief Executive Officer Charlie Cornish said in an interview last month.

The Gulf carriers are targeting northern England as part of a growth splurge aimed at challenging British Airways and other carriers specializing in long-distance transfer traffic.

Emirates is building up a fleet of 90 A380s with a total of 45,000 seats as it seeks to direct price-sensitive passengers through Dubai, while Qatar has orders for 178 jetliners worth $35m and Etihad has 100.

Passengers have been lured by newer aircraft appearing on routes out of Manchester, Hulme of Travel by Design said. Emirates and Etihad also offer first-class seats on flights from the city, and both have their own premium lounges there.

The superjumbo service from Manchester - the first in the world serving a regional city - has been among a top performer for Emirates, with the 517-seat plane flying full within two months of its introduction in September, the company said when announcing the third daily trip, which will be operated by a 237-seat Airbus A330.

Etihad’s addition of a second daily flight from August marks the ramp-up of an earlier plan to switch to 10 services a week, and Qatar Airways is adding capacity in Manchester as it terminates its service to London Gatwick, the secondary hub for British Airways, which has four daily shuttles there.

Unlike the UK company, which is strongest on North Atlantic routes and which recently merged with Iberia of Spain, adding connections to Latin America, the Gulf carriers are focused on faster-growing markets in Asia. Qatar Airways said when announcing its extra Manchester frequency that the route taps demand from populations living in and around the city for travel via Doha to India, Pakistan, Bangladesh and Sri Lanka.

“The East is the market of growth and it’s where Emirates and Etihad are positioned,” said Peter Morris, an analyst at aviation consultant Ascend. “There is more connectivity out of the U.K. on Emirates to Asia and the Middle East than at BA.”

Still, re-establishing Manchester as a hub would probably be prohibitively expensive, London-based Morris said, while Willie Walsh, CEO of International Consolidated Airlines Group SA, BA’s parent company, said the carrier isn’t concerned.

“We’ve flown international flights from Manchester in the past but they weren’t profitable, so today we fly to Heathrow,” Walsh, who ran British Airways until January, said in an interview. “If the Middle Eastern carriers want to fly there and it’s a market we’re not serving directly, that’s competition. I have no complaints.”

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Sky Observer 9 years ago

'British Airways' is no longer the case, rather it is 'London Airways' and has been for a while! They are being rapidly being relegated to the third division under Willie Walsh!

Jon 9 years ago

It's nice to see a professional approach to competition as stated by Willie Walsh in the last paragraph. I doubt the likes of James Hogan and Tim Clark would be so gracious - probably would want the government to step in and impose visa restrictions.