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British Airways Owner to Launch Low-Cost Long-Haul Airline

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British Airways Owner to Launch Low-Cost Long-Haul Airline MAY 2017 NEWSLETTER Italian Air Traffic Strike Disrupts Flights PAGE 3 Visa Joins Amex & MasterCard in Enabling Mobile Wallets for Corporate Cards PAGE 3 British Airways Owner to Launch Low-Cost Long-Haul Airline PAGE 2 1 INFocus Newsletter BA Owner to Launch Low-Cost Long-Haul Airline By Tom Newcombe The launch by British Airways’ owner of a low-cost long-haul airline could be a key staging post in the development of the growing trend for cheaper and longer flights. 'Level' has been unveiled by International Airlines Group as a low-cost, long-haul carrier operating out of Barcelona from June with flights to Los Angeles, San Francisco, Buenos Aires and Punta Cana in the Dominican Republic. The move will put the company in direct competition with companies such as Norwegian, which has tried to carve a niche for itself in the nascent cheap long- passengers paying for things like food if “Experience has shown that customers haul flights market. they want it rather than it being bundled are willing to forego some comforts, into all ticket prices. Only 21 of the 314 amenities and niceties for cheap, safe, Level will be run by IAG’s Spanish seats have these things bundled in as a reliable travel.” carrier Iberia’s flight and cabin crew and ‘premium economy’ seat. fares with start from €99 one-way or $149 The move comes almost a decade after compared to the lowest price for flights Loizos Heracleous, a professor of British Airways launched OpenSkies, on Norwegian from Barcelona to San strategy at Warwick Business School who which ran flights non-stop from Paris to Francisco of €162, according to prices has researched the aviation industry, said New York but is not prominently mentioned published on its website. budget airlines had, on average, higher by the company now. growth and profitability than flag carriers. Willie Walsh, IAG chief executive, said Liberum transport analyst Gerald Khoo “Ryanair is a case in point, routinely Level would become IAG’s fifth main said the long-haul low-cost model was achieving the highest margins through airline brand alonside Aer Lingus, British something that “seems to be increasingly intense efficiency, scale and aggressive Airways, Iberia and Vueling. pursued” by the airline industry. growth; while delivering an acceptable to good flyer experience,” he said. Mr Walsh added Barcelona was “just “It has taken longer [than the short the start” and that other European haul market] because the number of "It certainly makes sense from a destinations would be added. opportunities to take the cost base down corporate strategy perspective for a are not as big,” he said. company such as IAG, that already plays in all aviation sectors, to wish to expand Mr Khoo said it was likely IAG could use further in the sector that has the highest its Vueling brand as a feeder carrier for growth promise, ie the budget sector.” Level and stated he thought IAG had been able to do this in part because of Iberia’s Mr Heracleous added long-haul, low- “competitive cost base” and also because cost travel was the “next logical point of of what he called menu pricing - meaning market development for this sector”. 2 INFocus Newsletter Italian Air Traffic Strike Disrupts Flights By Tom Newcombe Alitalia has cancelled almost 40 per Other airlines including British Airways, “Just like other airlines we are subject cent of Monday’s flights (March 20) due Easyjet and Ryanair have also confirmed to Italian air traffic regulations and expect to industrial action from Italian air traffic some flights will be cancelled and delayed delays and cancellations on the day if the controllers. due to the strike. strike is confirmed.” The four-hour walkout will take place “We will be using larger aircraft, where The action is in protest at the Italian from 1pm – 5pm involving several air possible, to help affected customers government’s attempts to restructure the traffic unions, and will hit airports including and are doing all we can to reduce any transport sector. Rome Fiumicino and Milan Linate airports. disruption,” British Airways said. Flights set to operate during the peak All passengers due to travel to Italy times between 7 am to 10 am and from EasyJet warned: “The strike may affect today have been advised to check with 6 pm to 9 pm will go ahead as scheduled. flights flying to and from Italy. their airline before arriving at the airport. Visa Joins Amex & MasterCard in Enabling Mobile Wallets for Corporate Cards By JoAnn DeLuna Visa has enabled Android Pay, Apple capability with multiple companies across numbers and information being stolen." Pay and Samsung Pay for corporate cards, "hundreds to thousands" of cardholders. and U.S. Bank will be the first corporate American Express was the first card card issuer to enable them for clients, said Clients' requests for mobile solutions issuer and network to enable Apple Pay U.S. Bank general manager of corporate for their workforces drove the move, capability for U.S. corporate cards in and public sector bank card programs according to Rankin. Because mobile 2015. Later that year, MasterCard enabled Jeff Rankin. Once companies approve the wallets use tokenization, Rankin said the corporate card use with Android Pay, use of mobile wallets for their travelers, payment method is safer than magnetic Apple Pay and Samsung Pay. employees download the mobile wallet app stripe cards. "It's similar to using a chip of their choice and input their corporate card," he said. "It decreases the chances card details. U.S. Bank has piloted the of fraud and the chance of account Concur Will Release Mileage Tool Powered by Motus By JoAnn DeLuna Concur will white-label mileage to track mileage, employees input specific Concur incorporated Apple and Android's management software provider Motus' times and dates, such as Monday through best practices for battery optimization so mileage reimbursement tool as Concur Friday between 10 a.m. and 4 p.m. the tool is "on and aware just enough to Expense Smart Drive and integrate it into "Smart sensors" know when a traveler know when you started to drive or stopped Concur Mobile. The tool uses the person's is in a vehicle. If a business trip falls driving but uses no more battery life than phone GPS and approved mileage rates outside the specified period, the user also that." from around the world, including the IRS, proactively can tell the tool to track a trip, to calculate mileage reimbursement as a explained Concur VP of global product According to Motus, companies traveler drives. It then creates a line item experience Robb Nielsen. The app also that switch from self-reported mileage in Concur Expense. lets traveler delete legs of a trip that reimbursement to automated GPS are not business related. GPS typically mileage tracking save an average of 20 To let the person's phone know when drains a phone's battery, but Nielsen said percent mileage costs. May 2017 3 Online Booking Is, Like, So ‘90s: The Humble Travel Agent Is Making a Comeback By Harriet Baskas It often happens on Mondays. stayed at the hotels, visited the sites and On a two-week, multi-city visit to Spain can negotiate good rates and extra perks. and Portugal, Wickre and a friend figured "I get calls from people who say 'I spent chose the hotels and length of stays in all weekend online trying to work out a trip Travelers who have found occasion each city, but turned to the agent to book and this is exactly what I need,'" said travel to turn from the web to an agent include flights, trains, and airport transfers. consultant Sheri Doyle, the Seattle-based Alyne Ellis, a writer and radio producer owner of Pacific Northwest Journeys. from Washington D.C. who was planning a "All the travel documents and details trip to Rome, Venice, and Croatia with her were in one itinerary," said Wickre, "They Doyle, who specializes in creating husband, who had never been to Europe. even have an app we could look at along itineraries for travelers heading to the way. And it was easy to pay one bill to Oregon, Washington, British Columbia, "We were overwhelmed with the the agent." and beyond, finds that many of her clients logistics as we only had a few days in are travelers frustrated by the overload of Rome and Venice and wanted to be near These experiences fit with the trend information on Expedia, TripAdvisor and everything," said Ellis. With the help of an noted in a June 2016 report by the other online travel sites and who want to agent, "We stayed in some of the nicest American Society of Travel Agents, which be sure they are making good decisions places ever and they all seemed very local surveyed 14,000 U.S. households and about how to spend vacation days — and in their feeling, at our request," she said. found that, despite the rise of online travel making good use of their time. agents (OTAs), in the previous year 22 Karen Wickre, an internet industry percent of consumers booked through a "It's time versus money. A lot of people veteran and founder of KVOX Media, travel agent, the highest share reported in just don't have the time or the expertise relies on a travel adviser who can "see the past three years. to plan a trip and do it well," said Doyle, competitive pricing and scheduling," when and they find value in paying a fee for the planning complex trips outside the U.S.
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