Business

EasyJet muscles in on long-haul passengers with new connecting service

EasyJet muscles in on long-haul passengers with new connecting service
Passengers disembark from an EasyJet flight after arriving at Gibraltar airport in Gibraltar.. Photo: Reuters
Published: 2:55 PM, September 13, 2017
Updated: 11:00 PM, September 13, 2017

LONDON - British budget airline easyJet <EZJ.L> launched a new booking platform on Wednesday to allow customers to more easily connect onto long-haul flights with other airlines, moving ahead of its rivals in a potentially lucrative market.

Both easyJet and Ryanair <RYA.I> have for some time been looking at so-called feeder flights to attract more customers, and have often said traditional carriers should use low cost rivals to bring passengers to their hubs.

The move is an attempt to muscle into the market for connections at international hub airports currently dominated by the big global airline alliances - Oneworld, SkyTeam and Star Alliance.

EasyJet passengers will be able to buy other airlines' flights on easyJet.com and will also initially be able to connect onto long-haul flights provided by Norwegian Air Shuttle <NWC.OL> and WestJet <WJA.TO> at London Gatwick using the airport's Gatwick Connect scheme.

Peter Duffy, chief commercial officer at easyJet, said 70 million passengers currently begin journeys at easyJet airports, and make a stop before traveling across continents, and that easyJet wanted a slice of that market.

"This will open up lots of new competition for long-haul travel and will drive prices down," Duffy told reporters.

The Gatwick Connect scheme allows passengers to pick up their bags and drop them off at a transfer desk before going through security for their next flight. Passengers will have a minimum 2-1/2 hour connection time.

The move also increases pressure on British Airways <ICAG.L> at Gatwick, RBC analyst Damian Brewer said, where it lacks the short-haul feed for its intercontinental routes.

In January, Ryanair said it hoped to start offering connections to long-haul flights from Norwegian and Aer Lingus from May, but later said that would more likely be from September. It said technical issues were causing delays.

Norwegian's chief commercial officer Thomas Ramdahl told Reuters it was still talking to Ryanair.

"We have a solution that works for two parties within the low-cost model, so we can easily bring this solution onto Ryanair if they are willing to join us," Ramdahl said, adding easyJet had greater flight numbers to Gatwick, which is home to Norwegian's biggest long-haul network.

Ramdahl said Norwegian was looking at similar arrangements in the United States and Asia, and had talked to Qantas-owned Jetstar <QAN.AX> about a connecting partnership for Norwegian's flights to Singapore.

At 1430 GMT, shares in Norwegian were up 2.6 percent, while easyJet's rose 1.6 percent, the biggest increase on Britain's FTSE 100 <.FTSE>.

Aviation consultant John Strickland said easyJet's platform would make customers' lives easier, but as the airline already operated very full planes, it was more a case of topping up business where available.

"Importantly for easyJet it won't pick up the tab for any missed connections or baggage disruptions," he added.

EasyJet said it did not expect any additional costs as a result of the new service. It also said it was in talks with carriers in the Middle East and Asia about joining the scheme, which would expand into other airports in Europe. REUTERS