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The markets we operate in

BA staff member & customer

For both business travellers and individuals, airline brands that are trusted to be robust and reliable are more sought after in tough economic times. Customers seek assurance that their journeys will go smoothly. If they travel less, each trip they do make is all the more important.

Longhaul market

Deregulation has had a significant impact on our longhaul business. The first phase of the EU-US Open Skies agreement has altered the competitive landscape on transatlantic routes. While seat capacity in the summer of 2008 rose by just 3 per cent, the new regime has provoked a sharp transfer of capacity from Gatwick (down 39 per cent) to Heathrow (up 19 per cent).

Four new US airlines have now won slots at Heathrow. There have also been new entrants from Africa and India. Air France temporarily established a US service from Heathrow, at a time when our own OpenSkies subsidiary launched direct services to the US from Paris and Amsterdam.

Three airlines have introduced the new Airbus A380 at Heathrow in 2008, with a total of 24 departures a week. The aircraft offers them the chance to enhance their products.

However, the economic downturn wreaked havoc in two emerging sectors in our industry in 2008. We saw the collapse of three premium-only operators – Maxjet, Eos and Silverjet. Low cost longhaul operators, such as Oasis Hong Kong and Zoom, also went out of business, although other operators have emerged to serve this market, in which a number of charter airlines continue to operate.

Three airlines have introduced the new Airbus A380 at Heathrow in 2008, with a total of 24 departures a week. The aircraft offers them the chance to enhance their products.

Airbus A380

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