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You can find the current article at its original source at https://www.theguardian.com/business/2016/dec/23/ba-owner-to-launch-low-cost-flights-to-us-from-barcelona
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| BA owner to launch low-cost flights to US from Barcelona | |
| (35 minutes later) | |
| International Airlines Group, the owner of British Airways, is to launch low-cost transatlantic flights in a bid to grab a slice of the nascent market for no-frills long-haul air travel. | International Airlines Group, the owner of British Airways, is to launch low-cost transatlantic flights in a bid to grab a slice of the nascent market for no-frills long-haul air travel. |
| The group said it would start flying from Barcelona’s El Prat airport to the US in June, either under the banner of a new airline, as part of “legacy” carriers BA and Iberia, or via its lowest-cost long-haul airline Aer Lingus. | The group said it would start flying from Barcelona’s El Prat airport to the US in June, either under the banner of a new airline, as part of “legacy” carriers BA and Iberia, or via its lowest-cost long-haul airline Aer Lingus. |
| As well as US destinations such as Los Angeles and San Francisco, it is considering cheaper routes to Buenos Aires, Santiago, Havana and Tokyo. | As well as US destinations such as Los Angeles and San Francisco, it is considering cheaper routes to Buenos Aires, Santiago, Havana and Tokyo. |
| “This new operation will add another dimension to IAG and complement the other airlines in the group,” the company said in a statement. | “This new operation will add another dimension to IAG and complement the other airlines in the group,” the company said in a statement. |
| Using Barcelona’s El Prat airport will allow IAG to feed passengers from its European short-haul budget carrier Vueling into the new routes, which will be flown by a pair of 300-seat Airbus A330 planes at first. | Using Barcelona’s El Prat airport will allow IAG to feed passengers from its European short-haul budget carrier Vueling into the new routes, which will be flown by a pair of 300-seat Airbus A330 planes at first. |
| IAG, created via the £5bn merger of BA and Iberia in 2010, has not ruled out following suit in the UK by launching a lower-cost alternative to its transatlantic British Airways fares. | IAG, created via the £5bn merger of BA and Iberia in 2010, has not ruled out following suit in the UK by launching a lower-cost alternative to its transatlantic British Airways fares. |
| Aviation analysts billed the move as a response to the growth in budget long haul flights offered by fast-expanding rivals such as Norwegian, which is taking on established players on longer journeys by undercutting them on price. | Aviation analysts billed the move as a response to the growth in budget long haul flights offered by fast-expanding rivals such as Norwegian, which is taking on established players on longer journeys by undercutting them on price. |
| “There’s recognition among management at IAG that legacy airlines responded late to the development of low-cost short haul,” said John Strickland, director of consultancy JLS Consulting. | “There’s recognition among management at IAG that legacy airlines responded late to the development of low-cost short haul,” said John Strickland, director of consultancy JLS Consulting. |
| “IAG have learned that lesson and won’t let that happen again by allowing low-cost long haul development without them. Norwegian have shown it can work and they’ve seen it’s going to take hold.” | “IAG have learned that lesson and won’t let that happen again by allowing low-cost long haul development without them. Norwegian have shown it can work and they’ve seen it’s going to take hold.” |
| Analysts at the CAPA Centre for Aviation, an airline analysis firm, said it looked like IAG was reacting to the growth of Norwegian, which already competes with BA on US routes out of Gatwick. | Analysts at the CAPA Centre for Aviation, an airline analysis firm, said it looked like IAG was reacting to the growth of Norwegian, which already competes with BA on US routes out of Gatwick. |
| “Plans by the low-cost carrier Norwegian to launch long-haul routes from Barcelona in 2017 may have had a catalytic effect on IAG’s thinking,” they said. | “Plans by the low-cost carrier Norwegian to launch long-haul routes from Barcelona in 2017 may have had a catalytic effect on IAG’s thinking,” they said. |
| Long-established airlines such as British Airways, American Airlines and Delta are finding their formerly lucrative transatlantic routes tougher amid rising competition from budget newcomers including Norwegian, WestJet and Wow Air. | Long-established airlines such as British Airways, American Airlines and Delta are finding their formerly lucrative transatlantic routes tougher amid rising competition from budget newcomers including Norwegian, WestJet and Wow Air. |
| That has prompted the established or legacy carriers to develop their own low-cost exposure. | That has prompted the established or legacy carriers to develop their own low-cost exposure. |
| Earlier this year, Lufthansa’s Eurowings unit started flying long-haul to Cuba, Thailand and the Dominican Republic from Cologne and said this week it would also consider flying from Munich. | Earlier this year, Lufthansa’s Eurowings unit started flying long-haul to Cuba, Thailand and the Dominican Republic from Cologne and said this week it would also consider flying from Munich. |
| Air France said in November that was considering a budget offer to the US but has yet to decided on what it might look like. | Air France said in November that was considering a budget offer to the US but has yet to decided on what it might look like. |
| Ryanair, Europe’s largest short-haul carrier and the no-frills specialist, has repeatedly toyed with the idea of moving into long-haul travel but has yet to take the plunge. | Ryanair, Europe’s largest short-haul carrier and the no-frills specialist, has repeatedly toyed with the idea of moving into long-haul travel but has yet to take the plunge. |
| But IAG’s entry into the market could speed up the race to win price-conscious travellers to the US, Caribbean and Latin America. | But IAG’s entry into the market could speed up the race to win price-conscious travellers to the US, Caribbean and Latin America. |
| “The market is big and it’s price sensitive so it could be stimulated by an airline of this kind offering a lower fare proposition,” said Strickland, adding that IAG’s cost-cutting efforts would stand it in good stead to make money from a budget long-haul offering. | “The market is big and it’s price sensitive so it could be stimulated by an airline of this kind offering a lower fare proposition,” said Strickland, adding that IAG’s cost-cutting efforts would stand it in good stead to make money from a budget long-haul offering. |