In the past few months, British
Airways and Condor Airlines have announced plans to begin direct flights from
New Orleans to London’s Heathrow Airport and Frankfurt, Germany. The flights,
set to begin in the spring, will be the first direct flights to Europe from
Louis Armstrong International Airport since 1982. The opening of these two
routes is the result of years of work by the New Orleans Convention and
Visitors Bureau, Greater New Orleans Inc., a regional economic development
group, local and state government, and the representatives of the airport
itself. The Convention Bureau established an office in London and lobbied tour
operators, travel agents, and travel brokers to create a demand for direct
flights to New Orleans. Last year, New Orleans was on the short list to receive
a British Airways direct to London flight but lost out to San Jose, as British
Airways viewed Silicon Valley as a more attractive option. They worried that
business travelers, who pay more for tickets and travel more frequently than seasonal
travelers, would not have as much a demand to travel to New Orleans.
The opening of these new routes shows
that New Orleans’ investments in the tourism industry after Hurricane Katrina
have begun to pay off. Louis Armstrong International Airport is in the midst of
spending nearly one billion dollars to construct a new state of the art
terminal, set to open in 2018. Last year, the airport had 10.7 million
passengers, the most in its seventy year history. Visitors to New Orleans spent
a record seven billion dollars in 2015 and by opening direct international
routes New Orleans opens itself up to even more tourist revenue. International travelers
tend to spend longer in their destinations, up to 3 weeks, and spend more money
overall than domestic travelers. Tapping into this high end travel market will open
up a line of revenue into the city and state’s coffers. Additionally, the
opening up of these routes means that travelers won’t have to fly to Atlanta,
Houston, or Dallas before heading to Europe. London and Frankfurt, besides
being desirable destinations on their own, are hubs to pretty much anywhere in
Europe.
The opening of these routes is also
the result of profound changes in the airline industry. For anyone who follows
the airline industry closely (something I’m sure you all do), it was no
surprise that British Airways announced that the Boeing 787 Dreamliner would
fly the London-New Orleans route. This
plane, first designed in the late 1990s after Boeing saw a decline in orders
for its larger long haul airplanes, represents the latest trend in aviation. Following
the terrorist attacks of September 11 and the spike in fuel prices in the
2000s, airlines valued fuel efficiency over speed. The Dreamliner offers
excellent fuel efficiency—102 miles per gallon per seat—it is also light, and
has an operational range of 8,000 miles. While it only carries 220 passengers,
the other bonuses of the plane make up for its smaller seating capacity. The
existence of the Dreamliner with its fuel efficiency and long operational range
signals the triumph of point-to-point flying over the old hub-and-spoke model.
In past decades and exemplified by planes like Airbus’s A380—the
largest ever passenger plane that holds 615 people on two separate floors—airlines
operated on the hub-and-spoke model. In this model, for long distances say
across the United States, airlines operated one hub on each coast, say New York
and Los Angeles. If you were on the East Coast and needed to get to the West
Coast you had to fly from wherever you were to New York and then to L.A. This was
great for airlines as they had fewer routes to maintain and could pack their
planes full, but it also drove up costs as it’s really expensive to operate out
of major hubs with higher airport fees, cost of ground staff, terminal space,
and other associated costs.
The 787 Dreamliner |
The Dreamliner has made the
point-to-point model much more feasible and has made opening less popular
routes, like London to New Orleans possible. Compared to the hub and spoke
model, point-to-point travel is cheaper for the consumer and the airline. The
consumer no longer has to take multiple flights to get to their destination—and
in the case of New Orleans often flying in the wrong direction to Houston or
Dallas. Airlines incur fewer costs because flying out of an airport like New
Orleans is cheaper than major hubs. Airport fees, ground staff, gates, and all
the associated costs of flying are cheaper at a less traveled airport. Additionally,
as fuel prices have dropped in recent years, fuel efficient planes like the
Dreamliner are even cheaper to operate. And with an operational range of 8,000
miles, the Dreamliner can easily travel between different European and North
American cities.
The opening of the New Orleans to
London and New Orleans to Frankfurt routes are the results of long term trends
in the airline industry that will make travelling internationally easier and
more accessible to people than ever before.
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