EU pressed to investigate Eurostar

Article Abstract:

EasyJet is said to be preparing to file a complaint against the Governments plans to award the Eurostar services contract to a consortium of National Express and British Airways. EasyJet is to complain on grounds of unfair competition on services linking London with Paris and Brussels. British Airways already commands some 40% of the airline market between London and Paris, making it the single biggest operator on the route. While National Express commands the majority of the coach service market from the UK to Paris and Brussels. This means that BA and National Express will have a 90% dominance in the market, carrying an estimated 15mn passengers per year. Virgin is also said to be considering launching a complaint against the consortium on grounds of competition.

Comment:

Prepares to file complaint vs Govts' plans to award Eurostar svcs contract to consortium of National Express & British Airways

Government regulation (cont), EasyJet

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Airline fare wars move to the Web

Article Abstract:

Competition for low-cost flights is encouraging airlines to cut out the travel agent and set up Internet sites to sell flights direct instead. EasyJet set up its Web site four months ago and it now accounts for 5% of its ticket sales, with a target of 30% by the end of 1999. The latest addition is Go, the British Airways subsidiary, which launches its Web site on 21 September 1998, with all tickets to cost under GB 100 for the first month. British Airways normally sells around 80% of its tickets through travel agents, requiring commission payments of over GB 500mn per year.

Comment:

UK: Competition for flights prompts airlines to cut out travel agent & set up Internet sites to sell flights direct instead

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Go ends introductory GB 100 flights

Article Abstract:

Go, the low-fare airline belonging to British Airways, has begun a new fare structure by putting the price of its cheapest tickets up by 20% and ending a flat fare of GB 100 return. It says these were an introductory promotion to establish itself. The carrier will now stagger seat prices according to availability of seats on its fleet of Boeing 737-300 aircraft. Go is also hoping to launch more European routes into Amsterdam and Barcelona.

Comment:

Begins new fare structure by putting the price of its cheapest tickets up by 20% & ending a flat fare of GBP100 return

Go

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