New All-Biz Class Airline Courts Travel Agents
by Barbara Peterson /La Compagnie, the latest airline startup to test the merits of an all-business class product, has inked deals with the three major GDSs to raise its profile among travel agents and corporate travel departments.
The boutique line launched flights between Newark and Paris Charles de Gaulle airports in July with minimal advertising and outreach to the trade.
But that’s about to change, according to Peter Luethi, the deputy CEO and cofounder of the Paris-based carrier. The airline is now in Amadeus, Sabre and Travelport.
“The key thing is that this will allow the trade to find us and book us more easily,” said Luethi. “Up until now, you could only book us through our call center or by going directly through our website.”
Niche player
The carrier is, by definition, a niche player.
Its fleet consists of a single aircraft, a narrowbody 757 with 74 lie-flat business class seats with a 60-inch seat pitch, in a two-by-two layout. It will take delivery of a second jet by the end of the year, which will allow it to increase frequencies from six flights a week to daily.
In its first three months, La Compagnie’s load factors have been averaging 50%, and Luethi described that showing as “better than expected,” given its low profile.
Once word gets out – the carrier is also starting to advertise – Luethi said the line’s price advantage should stimulate sales. Restricted fares begin as low as $1,500 roundtrip during sale periods; more flexible fares range from $2,685 to $4,203 -- a significant discount off standard J class prices, and lower in some cases than premium economy.
If this all sounds familiar, it is: La Compagnie is the brainchild of French entrepreneur Frantz Yvelin, who founded L’Avion, another premium carrier that served the same route. L’Avion was acquired five years ago by British Airways, which merged it into its OpenSkies subsidiary.
Trying it out
Some travel agents who did business with that predecessor said they’re willing to give the new line a chance.
Barbara Jatha, president of Skyway Travel in Ossining, N.Y., an Ensemble agency, said she booked L’Avion during its heyday and got a lot of positive feedback.
“L’Avion was great,” she said. “I sold it many times and I flew it myself.
“People loved the all-business idea and they were willing to pay the extra money for it,” she added.
Jatha recalled “VIP” touches, like access to priority lanes at airports. She wasn’t aware that La Compagnie had started up, but added that its entry into the GDSs would be a plus.
Added perks
La Compagnie is also providing customer perks to set it apart: access to business class lounges at both CDG and at Newark’s newly-renovated Terminal B, individual Samsung Galaxy tablets at each seat with movies and reading material, and inflight wifi to come later this year.
But some agents mentioned that the dismal track record of other luxury lines could raise concerns among clients.
In the early 2000s, a slew of startups like Maxjet, Eos and Silverjet flew across the Atlantic; all had tanked by the end of the decade.
“It’s hard to keep track of them; they come and they go,” said Rick Ardis, owner of Ardis Travel in East Rutherford, N.J. and immediate past president of ASTA’s New Jersey chapter.
“It could be difficult to sell depending on the client,” Ardis said.
“My customers tend to be comfortable with what they know, and when you give them an option of something they are unfamiliar with, they hesitate.”
Still, low fares for an upscale product might overcome such resistance.
“Most travelers, especially the infrequent flier, really get sticker shock when you tell them it’s going to cost $6,000 to fly in business class,” Ardis said.
“People who are tired of being nickel and dimed; they might be open to it.”
Appealing to the trade
Luethi said that’s the advantage he emphasizes when approaching the travel trade.
Rather than negotiating fares with major corporate accounts, “we are going to them with the offer we have, because it is half of what they pay today.”
“We’ve got a sales team that is going out, and reaching out via emails and personal contacts,” he said.
They are also working through the French-American Chamber of Commerce and with major companies that do business in France.
The airline is already generating buzz within the Francophile community, said Yael Choukroune, co-owner of Frenchway ravel in New York City.
“We booked some people on it and they were very happy,” she said. “When you compare it to what the other airlines offer for the same price, it’s a good deal.”