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><channel><title>Chris Abraham &#187; market competition</title> <atom:link href="http://chrisabraham.com/tag/market-competition/feed/" rel="self" type="application/rss+xml" /><link>http://chrisabraham.com</link> <description>Because the Medium is the Message</description> <lastBuildDate>Fri, 10 Feb 2012 18:08:23 +0000</lastBuildDate> <language>en</language> <sy:updatePeriod>hourly</sy:updatePeriod> <sy:updateFrequency>1</sy:updateFrequency> <generator>http://wordpress.org/?v=3.3.1</generator> <xhtml:meta xmlns:xhtml="http://www.w3.org/1999/xhtml" name="robots" content="noindex" /> <item><title>Looks Like I Can Truly Be Bi-Continental</title><link>http://chrisabraham.com/2008/03/26/looks-like-i-can-truly-be-bi-continental/</link> <comments>http://chrisabraham.com/2008/03/26/looks-like-i-can-truly-be-bi-continental/#comments</comments> <pubDate>Wed, 26 Mar 2008 09:12:38 +0000</pubDate> <dc:creator>Chris Abraham</dc:creator> <category><![CDATA[Bi-Continental]]></category> <category><![CDATA[International]]></category> <category><![CDATA[International Travel]]></category> <category><![CDATA[Open-Skies Agreement]]></category> <category><![CDATA[Travel]]></category> <category><![CDATA[Travelling]]></category> <category><![CDATA[ACT]]></category> <category><![CDATA[aer lingus]]></category> <category><![CDATA[air travel]]></category> <category><![CDATA[airports]]></category> <category><![CDATA[american cities]]></category> <category><![CDATA[asia]]></category> <category><![CDATA[Berlin]]></category> <category><![CDATA[berliner]]></category> <category><![CDATA[berliners]]></category> <category><![CDATA[Blog]]></category> <category><![CDATA[Blogging]]></category> <category><![CDATA[Blogs]]></category> <category><![CDATA[british airways]]></category> <category><![CDATA[british airways flights]]></category> <category><![CDATA[chief executive]]></category> <category><![CDATA[continents]]></category> <category><![CDATA[europe]]></category> <category><![CDATA[european markets]]></category> <category><![CDATA[evenings]]></category> <category><![CDATA[expectation]]></category> <category><![CDATA[fly]]></category> <category><![CDATA[frankfurt]]></category> <category><![CDATA[germans]]></category> <category><![CDATA[germany]]></category> <category><![CDATA[glimmer]]></category> <category><![CDATA[heathrow airport]]></category> <category><![CDATA[kennedys]]></category> <category><![CDATA[liverpool]]></category> <category><![CDATA[market competition]]></category> <category><![CDATA[marketers]]></category> <category><![CDATA[Marketing]]></category> <category><![CDATA[nationalities]]></category> <category><![CDATA[native countries]]></category> <category><![CDATA[Networks]]></category> <category><![CDATA[news wire]]></category> <category><![CDATA[ny times]]></category> <category><![CDATA[onli]]></category> <category><![CDATA[online]]></category> <category><![CDATA[origins]]></category> <category><![CDATA[pact]]></category> <category><![CDATA[pacts]]></category> <category><![CDATA[paris]]></category> <category><![CDATA[providence]]></category> <category><![CDATA[Search]]></category> <category><![CDATA[seattle]]></category> <category><![CDATA[spelling]]></category> <category><![CDATA[studies]]></category> <category><![CDATA[taked]]></category> <category><![CDATA[traffic]]></category> <category><![CDATA[trans atlantic]]></category> <category><![CDATA[Washington]]></category> <category><![CDATA[Writing]]></category><guid
isPermaLink="false">http://chrisabraham.com/2008/03/26/looks-like-i-can-truly-be-bi-continental/</guid> <description><![CDATA[This just in over the news wire, just in time for me to become a resident of Berlin, is news that the &#8220;open-skies agreement&#8221; will make it easier, cheaper, and simpler for me to share my time between Germany and the United States; Berlin and DC! Via NY Times AIR travel to Europe is about [...]]]></description> <content:encoded><![CDATA[<div
style="float:left;margin:10px 10px 0px 0px;"> <a
class="DiggThisButton DiggMedium" href="http://digg.com/submit?url=http%3A%2F%2Fchrisabraham.com%2F2008%2F03%2F26%2Flooks-like-i-can-truly-be-bi-continental%2F&title=Looks+Like+I+Can+Truly+Be+Bi-Continental" rel="news, tech_news"><span
style="display:none">This just in over the news wire, just in time for me to become a resident of Berlin, is news that the &#8220;open-skies agreement&#8221; will make it easier, cheaper, and simpler for me to share my time between Germany and the United States; Berlin and DC! Via NY Times AIR travel to Europe is about [...]</span></a></div><p></p><div
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class="image" id="wideImage"><p
style="text-align: center"><img
src="http://graphics8.nytimes.com/images/2008/03/18/travel/23prac600.1.jpg" border="0" height="300" width="600" title="Looks Like I Can Truly Be Bi Continental" alt="23prac600.1 Looks Like I Can Truly Be Bi Continental" /></p><p>This just in over the news wire, just in time for me to become a resident of Berlin, is news that the &#8220;open-skies agreement&#8221; will make it easier, cheaper, and simpler for me to share my time between Germany and the United States; Berlin and DC! Via <a
href="http://www.nytimes.com/2008/03/23/travel/23pracopenskies.html?_r=2&amp;ei=5088&amp;en=a97d52ea87323797&amp;ex=1364184000&amp;adxnnl=1&amp;oref=slogin&amp;partner=rssnyt&amp;emc=rss&amp;adxnnlx=1206522393-sJbZgHWDUswhdDlZej0sew">NY Times</a></p><blockquote><p>AIR travel to <a
href="http://travel.nytimes.com/travel/guides/europe/overview.html?inline=nyt-geo" title="Go to the Europe Travel Guide.">Europe</a> is about to undergo a significant change, one that is likely to spell more choices and cheaper fares for travelers.</p></blockquote><p><span
id="more-4488"></span></p><p
id="articleInline">&nbsp;</p><blockquote><p>On March 30, the so-called open-skies agreement goes into effect, allowing airlines based in the <a
href="http://travel.nytimes.com/travel/guides/north-america/united-states/overview.html?inline=nyt-geo" title="Go to the United States Travel Guide.">United States</a> and Europe to fly across the Atlantic between any two airports in each region. Before the pact, trans-Atlantic flights were governed by separate agreements between the United States and individual European nations. The pacts required airlines to take off or land in their native countries, and limited which airlines could serve certain airports.</p><p>For example, British Airways flights bound for the United States had to originate in <a
href="http://travel.nytimes.com/travel/guides/europe/britain/overview.html?inline=nyt-geo" title="Go to the Britain Travel Guide.">Britain</a>. And only two United States carriers were permitted to land at Heathrow Airport, near <a
href="http://travel.nytimes.com/travel/guides/europe/britain/england/london/overview.html?inline=nyt-geo" title="Go to the London Travel Guide.">London</a>: American and United.</p><p>When the open-skies agreement kicks in next week, those restrictions will be lifted, essentially letting the open market dictate all trans-Atlantic routes between the United States and Europe. For instance, Continental, Delta and Northwest will be able to serve Heathrow for the first time.</p><p>This year, <a
href="http://travel.nytimes.com/travel/guides/north-america/united-states/california/san-francisco/overview.html?inline=nyt-geo" title="Go to the San Francisco Travel Guide.">San Francisco</a>, <a
href="http://travel.nytimes.com/travel/guides/north-america/united-states/florida/orlando/overview.html?inline=nyt-geo" title="Go to the Orlando Travel Guide.">Orlando</a> and <a
href="http://travel.nytimes.com/travel/guides/north-america/united-states/washington-dc/overview.html?inline=nyt-geo" title="Go to the Washington, D.C. Travel Guide.">Washington</a> all received their first scheduled nonstop flights to <a
href="http://travel.nytimes.com/travel/guides/europe/ireland/dublin/overview.html?inline=nyt-geo" title="Go to the Dublin Travel Guide.">Dublin</a> on Aer Lingus under a related transitionary arrangement. And Michael O’Leary, chief executive of Ryanair, the Irish no-frills carrier, has said he plans to start a new airline that will fly from secondary European markets like <a
href="http://travel.nytimes.com/travel/guides/europe/britain/england/liverpool/overview.html?inline=nyt-geo" title="Go to the Liverpool Travel Guide.">Liverpool</a> or <a
href="http://travel.nytimes.com/travel/guides/europe/britain/england/birmingham/overview.html?inline=nyt-geo" title="Go to the Birmingham Travel Guide.">Birmingham</a> to a half-dozen American cities like <a
href="http://travel.nytimes.com/travel/guides/north-america/united-states/maryland/baltimore/overview.html?inline=nyt-geo" title="Go to the Baltimore Travel Guide.">Baltimore</a> or <a
href="http://travel.nytimes.com/travel/guides/north-america/united-states/rhode-island/providence/overview.html?inline=nyt-geo" title="Go to the Providence Travel Guide.">Providence</a>, R.I., for a base fare as low as 10 euros, or about $16 at $1.59 to the euro.</p><p>“We don’t even begin to get a glimmer of the possibilities of open-market competition yet,” said Jerry Chandler, who writes <a
href="http://cheapflights.com/" target="_">Cheapflights.com</a>’s travel blog and has been tracking the new open-skies flights. “There could be a lot of flourishing of routes in markets that currently don’t exist, especially from smaller U.S. cities to European hubs.”</p><p>The new pact is expected to be game-changing for Europe-bound travel. More routes are expected to open, and prices could fall thanks to the new competition. The agreement is also likely to encourage European carriers to compete more aggressively with one another across the Continent. Lufthansa, the German airline, for example, could set up a hub in <a
href="http://travel.nytimes.com/travel/guides/europe/france/paris/overview.html?inline=nyt-geo" title="Go to the Paris Travel Guide.">Paris</a>; or Air France could set up a hub in <a
href="http://travel.nytimes.com/travel/guides/europe/germany/frankfurt/overview.html?inline=nyt-geo" title="Go to the Frankfurt Travel Guide.">Frankfurt</a>.</p><p>So far, though, most United States airlines are simply looking to open service to Heathrow — a strategic hub that offers connecting flights not just across Europe, but to the <a
href="http://travel.nytimes.com/travel/guides/middle-east/overview.html?inline=nyt-geo" title="Go to the Middle East Travel Guide.">Middle East</a>, <a
href="http://travel.nytimes.com/travel/guides/africa/overview.html?inline=nyt-geo" title="Go to the Africa Travel Guide.">Africa</a> and <a
href="http://travel.nytimes.com/travel/guides/asia/overview.html?inline=nyt-geo" title="Go to the Asia Travel Guide.">Asia</a>, too. Flights from the United States to Heathrow are expected to increase 31 percent, to 2,932 flights in July from 2,233 this month, according to OAG Back Aviation Solutions.</p><p>Northwest plans to add daily service later this year to Heathrow from <a
href="http://travel.nytimes.com/travel/guides/north-america/united-states/michigan/detroit/overview.html?inline=nyt-geo" title="Go to the Detroit Travel Guide.">Detroit</a>, <a
href="http://travel.nytimes.com/travel/guides/north-america/united-states/minnesota/minneapolis-and-st-paul/overview.html?inline=nyt-geo" title="Go to the Minneapolis and St. Paul Travel Guide.">Minneapolis</a> and <a
href="http://travel.nytimes.com/travel/guides/north-america/united-states/washington/seattle/overview.html?inline=nyt-geo" title="Go to the Seattle Travel Guide.">Seattle</a>. Beginning on March 29, the New York area will get four new flights a day to Heathrow: two from Continental out of Newark and two from Delta out of Kennedy Airport. Travelers in <a
href="http://travel.nytimes.com/travel/guides/north-america/united-states/georgia/atlanta/overview.html?inline=nyt-geo" title="Go to the Atlanta Travel Guide.">Atlanta</a> will have a new direct flight to Heathrow aboard Delta  (as opposed to connecting through <a
href="http://travel.nytimes.com/travel/guides/north-america/united-states/illinois/chicago/overview.html?inline=nyt-geo" title="Go to the Chicago Travel Guide.">Chicago</a> or some other city), as will travelers out of <a
href="http://travel.nytimes.com/travel/guides/north-america/united-states/texas/dallas/overview.html?inline=nyt-geo" title="Go to the Dallas Travel Guide.">Dallas</a>-Forth Worth and <a
href="http://travel.nytimes.com/travel/guides/north-america/united-states/north-carolina/raleigh/overview.html?inline=nyt-geo" title="Go to the Raleigh Travel Guide.">Raleigh</a>-<a
href="http://travel.nytimes.com/travel/guides/north-america/united-states/north-carolina/durham/overview.html?inline=nyt-geo" title="Go to the Durham Travel Guide.">Durham</a> — both aboard American by March 30.</p><p>European carriers like KLM Royal Dutch Airlines are also getting into the act with new service between Dallas-Fort Worth and Heathrow. Likewise, Air France will begin operating a daily flight between <a
href="http://travel.nytimes.com/travel/guides/north-america/united-states/california/los-angeles/overview.html?inline=nyt-geo" title="Go to the Los Angeles Travel Guide.">Los Angeles</a> and Heathrow on March 30.</p><p>For many travelers, a direct flight to Heathrow is long overdue. For instance, there are currently no nonstop flights between Dallas-Fort Worth and Heathrow, forcing many passengers to land at other London airports — like Gatwick or Luton — even if they have a connecting flight to catch in Heathrow. “It has been an absolute nightmare,” said Terry Denton, president of Main Street Travel, a Carlson Wagonlit agency in Forth Worth that specializes in missionary trips to Africa and elsewhere that usually require a connection through Heathrow.</p><p>Getting from Gatwick to Heathrow involves hauling luggage through passport control, taking a bus or cab across town and going through check-in and security anew — a process that could take three hours. The new routes will allow travelers to bypass that ordeal.</p><p>It’s not just Heathrow, however, that’s getting new service. British Airways is planning a subsidiary called OpenSkies that will skip London altogether, beginning with <a
href="http://travel.nytimes.com/travel/guides/europe/belgium/brussels/overview.html?inline=nyt-geo" title="Go to the Brussels Travel Guide.">Brussels</a>-New York and Paris-New York service as early as June. And some airlines, anticipating increased competition, are expanding their trans-Atlantic networks. Delta will begin flying from Kennedy Airport to Paris Orly on June 2, cutting out a three-hour-plus layover in <a
href="http://travel.nytimes.com/travel/guides/europe/spain/madrid/overview.html?inline=nyt-geo" title="Go to the Madrid Travel Guide.">Madrid</a>, <a
href="http://travel.nytimes.com/travel/guides/europe/france/provence-and-the-french-riviera/nice/overview.html?inline=nyt-geo" title="Go to the Nice Travel Guide.">Nice</a> or elsewhere.</p><p>KLM will start a daily flight between Dallas-Fort Worth and <a
href="http://travel.nytimes.com/travel/guides/europe/netherlands/amsterdam/overview.html?inline=nyt-geo" title="Go to the Amsterdam Travel Guide.">Amsterdam</a> on March 30. Previously, Dallas passengers had to change planes in <a
href="http://travel.nytimes.com/travel/guides/north-america/united-states/tennessee/memphis/overview.html?inline=nyt-geo" title="Go to the Memphis Travel Guide.">Memphis</a>, New York or another city before arriving in Amsterdam. The new flight will cut at least two hours off the total flight time.</p><p>Besides saving time, the new competition should put pressure on airlines to reduce fares. A 2002 study by the Brattle Group, a consulting firm, estimated that an open-skies agreement between the United States and the <a
href="http://topics.nytimes.com/top/reference/timestopics/organizations/e/european_union/index.html?inline=nyt-org" title="More articles about the European Union.">European Union</a> would generate a 10 percent increase in passenger traffic in formerly restricted markets, which could reduce fares 4 to 10 percent.</p><p>Routes to watch include <a
href="http://travel.nytimes.com/travel/guides/north-america/united-states/colorado/denver/overview.html?inline=nyt-geo" title="Go to the Denver Travel Guide.">Denver</a>-Heathrow and Seattle-Heathrow, which were previously served by only one nonstop carrier: British Airways. But thanks to the open skies agreement, United will begin flying between Denver and Heathrow on March 30, with introductory fares starting at $570 round trip for travel before May 15. British Airways, by contrast, has been offering that same route for $1,461, according to an online search.</p><p>And Northwest Airlines will start flying between Seattle and Heathrow on June 1, with fares for $1,288, compared with $1,302 on British Airways, based on a recent online search.</p><p>But don’t expect a full-on fare war just yet. With the price of fuel so high, pricing on trans-Atlantic travel has been “pretty brutal,” said Rick Seaney, the chief executive of <a
href="http://www.farecompare.com/">FareCompare.com</a>. “Base prices are at an all-time low, but fuel surcharges are up.”</p></blockquote><script type="text/javascript">(function() {var s = document.createElement('SCRIPT'), s1 = document.getElementsByTagName('SCRIPT')[0];s.type = 'text/javascript';s.async = true;s.src = 'http://widgets.digg.com/buttons.js';s1.parentNode.insertBefore(s, s1);})();</script><a
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