IAG to Establish Budget Long-Haul Unit
23 December 2016 - 9:12PM
Dow Jones News
By Robert Wall
British Airways-parent International Consolidated Airlines Group
SA (IAG.LN) is rushing into the burgeoning market for budget
trans-Atlantic travel.
It is the latest move of a traditional full-service carrier to
join the field of discount airlines that are spreading their wings
across the Atlantic, driving down ticket prices and expanding
service to major and second-tier cities. It markets the biggest
shake-up to travel across the pond in decades, which has been a key
driver for airline profit.
The new business will begin flying from Barcelona, Spain,
starting in June, London-based IAG said in a statement. Barcelona
is already home to IAG's European low-cost carrier Vueling.
New routes for the long-haul business being considered include
Los Angeles, San Francisco, Buenos Aires, Santiago de Chile, Havana
and Tokyo. The service will commence with two Airbus Group SE A330
long-haul planes. IAG already operates the type at its Spanish
Iberia and Irish Aer Lingus units.
Budget carriers generally offer lower ticket prices by charging
extra for perks such as seat assignment and onboard food that
network carriers traditionally have included.
Write to Robert Wall at robert.wall@wsj.com
(END) Dow Jones Newswires
December 23, 2016 04:57 ET (09:57 GMT)
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