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Heathrow take-off slots battle intensifies
By Kevin Done, Aerospace Correspondent
Thursday Oct 25 2007 17:20
The battle for take off and landing slots at London Heathrow airport intensified on Thursday, as a small number of coveted slot pairs became available as a result of the EasyJet takeover of GB Airways from the Bland group.
GB Airways' four pairs of slots at Heathrow, the most congested airport in Europe, were not included as part of the EasyJet takeover and are being sold separately by the Bland group in three different deals.
The world's airlines are due to meet in Toronto in two weeks to thrash out slot deals around the globe, but some of the pieces of the jigsaw at Heathrow are already falling into place.
Deals are not finalised yet, but it is understood that of GB Airways' four pairs of slots, two are to be acquired by Continental Airlines (NYSE:CAL) of the US, one by British Airways and one by Qatar Airways.
Heathrow slots trade in a grey market and often exchange hands for more than £5m for a pair of slots depending on the timing of the arrival and departure. It is understood that prime peak hour slot pairs have traded for up to £12m.
Willie Walsh, chief executive of British Airways, which controls more than 41 per cent of the slots at Heathrow, said on Thursday, "as always we will be bidding to get slots. We have not finalised any at this point."
The battle for slots has been particularly intense in recent weeks, as airlines prepare for the Toronto conference, which will agree deals in preparation for the start of the next summer season at the end of March.
The much-heralded "open skies" deal between the European Union and the US, aimed at liberalising transatlantic aviation, comes into force at the end of March, and as a result of the deal Heathrow, the most important European gateway for US air traffic will be fully opened to competition for the first time.
The previous stranglehold on direct US/Heathrow routes held by British Airways, Virgin Atlantic, American Airlines and United Airlines will be broken, and at least three more US carriers Delta Air Lines (NYSE:DAL) , Northwest Airlines (NASDAQ:NWAC) and Continental Airlines are planning to start services to Heathrow from their main US hubs.
It is understood that Continental is considering opening twice daily services from Heathrow to both Houston and New York Newark with an announcement possibly next week.
Delta Air Lines will have the use of three slot pairs from its alliance partner Air France to launch twice daily services between Heathrow and New York JFK and a daily service to Atlanta. Air France is also opening its first long-haul route from Heathrow to Los Angeles.
Northwest Airlines is expected to announce shortly that it will use three slots pairs held by its alliance partner KLM of the Netherlands to operate services between Heathrow and its hubs in Detroit and Minneapolis.
American Airlines is also taking advantage of the "open skies" deal to move part of its present services between Gatwick and Dallas-Fort Worth and between Gatwick and Raleigh/Durham in North Carolina, to Heathrow from the end of March. British Airways is moving its services to Houston and Dallas-Forth Worth from Gatwick to Heathrow.
By Kevin Done, Aerospace Correspondent
Thursday Oct 25 2007 17:20
The battle for take off and landing slots at London Heathrow airport intensified on Thursday, as a small number of coveted slot pairs became available as a result of the EasyJet takeover of GB Airways from the Bland group.
GB Airways' four pairs of slots at Heathrow, the most congested airport in Europe, were not included as part of the EasyJet takeover and are being sold separately by the Bland group in three different deals.
The world's airlines are due to meet in Toronto in two weeks to thrash out slot deals around the globe, but some of the pieces of the jigsaw at Heathrow are already falling into place.
Deals are not finalised yet, but it is understood that of GB Airways' four pairs of slots, two are to be acquired by Continental Airlines (NYSE:CAL) of the US, one by British Airways and one by Qatar Airways.
Heathrow slots trade in a grey market and often exchange hands for more than £5m for a pair of slots depending on the timing of the arrival and departure. It is understood that prime peak hour slot pairs have traded for up to £12m.
Willie Walsh, chief executive of British Airways, which controls more than 41 per cent of the slots at Heathrow, said on Thursday, "as always we will be bidding to get slots. We have not finalised any at this point."
The battle for slots has been particularly intense in recent weeks, as airlines prepare for the Toronto conference, which will agree deals in preparation for the start of the next summer season at the end of March.
The much-heralded "open skies" deal between the European Union and the US, aimed at liberalising transatlantic aviation, comes into force at the end of March, and as a result of the deal Heathrow, the most important European gateway for US air traffic will be fully opened to competition for the first time.
The previous stranglehold on direct US/Heathrow routes held by British Airways, Virgin Atlantic, American Airlines and United Airlines will be broken, and at least three more US carriers Delta Air Lines (NYSE:DAL) , Northwest Airlines (NASDAQ:NWAC) and Continental Airlines are planning to start services to Heathrow from their main US hubs.
It is understood that Continental is considering opening twice daily services from Heathrow to both Houston and New York Newark with an announcement possibly next week.
Delta Air Lines will have the use of three slot pairs from its alliance partner Air France to launch twice daily services between Heathrow and New York JFK and a daily service to Atlanta. Air France is also opening its first long-haul route from Heathrow to Los Angeles.
Northwest Airlines is expected to announce shortly that it will use three slots pairs held by its alliance partner KLM of the Netherlands to operate services between Heathrow and its hubs in Detroit and Minneapolis.
American Airlines is also taking advantage of the "open skies" deal to move part of its present services between Gatwick and Dallas-Fort Worth and between Gatwick and Raleigh/Durham in North Carolina, to Heathrow from the end of March. British Airways is moving its services to Houston and Dallas-Forth Worth from Gatwick to Heathrow.
