Friday, September 11, 2009

Recession isn't over in Britain yet

One sign of a recovery, is an increase in business travel. One sign such a recovery hasnt't happened is heavy discounting of air fares on business routes. One of the world's busiest is London-New York, between the two financial capitals of the world. A 7-7.5 hour flight typically. So....

On Sale. British Airways

London Heathrow
New York First Class now £2387 rtn

Given it is typically £8212 return in First Class, it shows there are a lot less bankers etc doing this trip up the very front.

Oh and if you're right down the back it is £299 return, which given that almost all of that is tax, is essentially paying the marginal cost for the cheap meal, the air and the fuel to carry you. It's always been fairly cheap there, but even if the back is completely full, flights from London to New York lose money unless there are enough people in the first and business class cabins. Given this pricing (which is less than when I went business class 9 months ago, which was itself a discount fare), business travel remains VERY subdued.

Business class sale is £1389 return, when it can be up to £5322, Premium Economy is £536 return, when it can be up to £1800.

In effect if you plan wisely you can fly a class higher than you may normally for the same price, with plenty to spare.

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