14/01/2008

Aer Lingus' Belfast Move To Spark London Price War

Irish carrier, Aer Lingus began flights between Belfast International Airport and London Heathrow on Monday morning - with a fares' war likely with competitors on lucrative routes to the capital.

It marked a major watershed for the 'flagship' airline – formerly government owned but now a private company – as it followed the ending of a link between Shannon Airport and Heathrow after almost 60 years.

There will be departures three times a day each way in what is the fourth of nine new routes at Belfast International since the airline decided to set up its new UK hub there.

The move caused uproar in the Shannon area, where fears were voiced that the move would have disastrous consequences for jobs and tourism.

Aer Lingus insisted it was a commercial decision which would be proved right.

However, the Chief Executive of Shannon Airport Authority, Pat Shanahan, resigned in protest over being kept in the dark about the decision until it was announced by Aer Lingus last August.

CityJet, the Irish subsidiary of Air France, has stepped in to provide a new route from Shannon to Paris - starting next month - which will provide onward connections to well over 200 international destinations. However no one has yet come up with a replacement Heathrow service.

The decision to move to Belfast also proved controversial there, where a strike by Aer Lingus cabin crew and ground staff over the new pay and conditions in Northern Ireland was only averted at the last minute.

The new service could spark a price war on London flights as Aer Lingus goes head to head with British Midland, which operates its Heathrow route from George Best Belfast City Airport.

It will also be in competition with easyJet which flies from Belfast International to the other London airports of Stansted, Gatwick and Luton.

Flybe operates a Gatwick route from the City Airport, while Ryanair - a major Aer Lingus shareholder - has recently begun a service from there to Stansted.

The Aer Lingus Belfast International Airport to Heathrow service is the fourth of nine routes it is launching after making a £100 million investment in its first UK hub and creating 100 direct jobs.

The airline last month started services to Amsterdam, Barcelona and Geneva.

Next month it takes off to Rome, Faro, Budapest and Malaga and adds Nice in March.

(BMcC)

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