Caribbean Airlines Enters the European Market

Caribbean Airlines this week opened bookings for its new services from Trinidad and Barbados to London as it seeks to secure a slice of the busy market for business and leisure travelers between the UK and the Caribbean. The airline will offer a four times weekly service from Port of Spain’s Piarco International Airport to London Gatwick from June 14, 2012, increasing to a daily schedule from June 30, 2012 when a three times weekly flight via Bridgetown, Barbados will be added.

This will be the first regular direct service between Trinidad and the UK since Caribbean Airlines predecessor BWIA West Indies Airways ended its long-haul flights into Europe. The carrier had regularly operated direct services between Port of Spain and London Heathrow using its Lockheed L1011 TriStars and latterly Airbus A340-300s, for a while in competition with British Airways which ended its own direct Boeing 747-200 flights in February 1989. In June 1991 BWIA ended its own direct services on this route in favour of a one-stop strategy, although non-stop flights returned between October 2006 and March 2007 ahead of its restructuring in April 2007 and the closure of its long-haul routes.

BWIA also served the Bridgetown, Barbados route up until April 2007 but other operators now dominate this market with British Airways and Virgin Atlantic Airways offering at least daily flights from London Gatwick, while Virgin Atlantic also has up to two flights per week from Manchester and Thomson Airways a charter programme from many UK airports, including Birmingham, Cardiff, Exeter, Glasgow, Doncaster Sheffield, London Gatwick, Manchester and Newcastle.

The UK – Caribbean market remains a lucrative business despite predicted declines in passenger numbers due partly to the current Economic situation in Europe, but also due to rising Air Passenger Duty (APD) on flights from the UK. In fact in the past year an estimated 1.56 million O&D passengers travelled on this route, up 10.6 per cent on the previous year, and is a market that is valued at around $850 million to the world’s airlines in ticket sales alone.

The table below highlights the ten largest Caribbean destinations from the UK by estimated O&D traffic during 2011 and total number of flights and annual seat capacity offered during the full year. As can clearly be seen, Port of Spain is currently the only destination in the top ten not to have direct flights. The UK – Caribbean market is currently dominated by the UK’s two largest carriers British Airways and Virgin Atlantic Airways which together account for around 85.1% of the estimated O&D traffic, with Virgin Atlantic holding the slightly larger share.

The formal launch of long-haul flights by Caribbean Airlines in June 2012 will mark the completion of a two-year project to resurrect direct links to the UK. In the last couple of months the airline formalised gate positions, lounges and slots at the London airport. “Our flights to London will provide a vital economic link which we hope to start mid June pending all regulatory approvals have been received,” said Robert Corbie, Acting Chief Executive Officer, Caribbean Airlines on a recent visit to the UK capital.

The airline will utilise two Boeing 767-300ERs on the new London route. These aircraft are both currently in operation with LAN Airlines in Chile and are scheduled for delivery in April and May. They will be configured in a two-class arrangement including what the carrier describes as a “flat-bed Business Class” offering. “We are well positioned strategically to become the preferred airline for all customers flying between the Caribbean and London,” added Robert Corbie.

Alongside the point-to-point demand Caribbean Airlines expects to generate additional transfer traffic into the region, something that its two rivals British Airways and Virgin Atlantic will be unable to offer. The airline highlights Georgetown, Guyana and Paramaribo, Suriname as just two of the markets to which it will provide onward connections. The new direct route to Port of Spain is likely to be popular with business travellers with reduced travel times between the UK and Trinidad but will also open up additional choice for holidaymakers.