SFGate: As ranks swell, Europe's carriers drop prices

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Tuesday, April 27, 2004 (AP)
As ranks swell, Europe's carriers drop prices
JANE SPENCER, The Wall Street Journal


   (04-27) 06:43 PDT (AP) --
   On a recent flight to Rome from Amsterdam, Dan Arrecis, a 5-foot-10 indie
rock musician from Chicago, summed up a common sentiment on board the
packed 737 jet:
   "Dude, I can't even move my knees."
   Welcome aboard Europe's discount airlines. Mr. Arrecis, 31 years old, was
flying on Virgin Group's Virgin Express, part of Europe's fast-growing
flock of no-frills airlines. By cramming in seats and ruthlessly slashing
perks, these airlines are transforming the way people travel the
Continent. Instead of chugging between countries by train, travelers can
zip around by air at mind-bendingly low prices.
   As the summer travel season approaches, a fierce price war is driving
ticket prices to new lows. One-way tickets from London to Berlin start at
$25 or so on Ireland's Ryanair, including all taxes, though prices climb
for last-minute bookings. Ryanair says its average ticket price is 42
euros (about $50). Tickets from Milan to Barcelona sell for less than $27
on Italy's Volareweb.com airline, owned by Volare Group. As the slogan for
German airline Hapag-Lloyd Express puts it, you can literally "Fliegen zum
TaxiPreis!" -- fly for the price of a taxi.
   So what's it actually like to travel on these stripped-down flying buses?
To find out, we took a six-airline, seven-country jaunt through Europe.
Our trek -- which started in London and ended in Budapest -- included the
two largest carriers, easyJet and Ryanair, along with some newer, lesser
known such as Basiq Air and Germanwings.
   It wasn't all a smooth ride. Our Ryanair flight from "Paris," for exampl=
e,
actually left from a tiny town called Beauvais, nearly an hour and half
outside Paris. The airport itself is a corrugated metal warehouse with no
toilet seats in the bathrooms.
   Europe's budget carriers offer a stark contrast to America's discount
airlines like JetBlue and Delta Air Line's Song. While the U.S. carriers
keep rolling out new perks, like satellite TV and pay-per-view movies,
Europe's low-fare airlines are taking cost cutting to new extremes,
stripping out every extra frill, from personalized air vents to
airsickness bags.
   In February, Ireland's Ryanair announced that its new planes wouldn't ha=
ve
reclining seats or Velcro-on fabric head protection flaps on the
headrests. The airline expects to save 2 million euros ($2.4 million) a
year in seat-repair costs.
   Space is also tighter on European flights. While JetBlue flights have 32
to 34 inches between seat rows, European discounters average about 29
inches. Since most flights within Europe are shorter than two hours, the
focus is efficiency, not comfort.
   The latest round of cost cutting comes as the more established carriers
battle to survive in an overcrowded market. In the past year alone, at
least a dozen new discount carriers have launched in Europe, bringing the
total number of carriers to 27, according to Aviation Economics, a
London-based consulting firm. Many of the newer carriers, including Air
Polonia, and Slovakian carrier SkyEurope, have launched in areas where
overhead costs are low, giving them an extra edge.
   The discounters are also facing new competition from Europe's major
airlines. Both British Airways and Ireland's Aer Lingus have slashed their
fares on key routes in hopes of luring back some of the passenger traffic
they've lost to the budget carriers in the past several years. The glut of
low-fare options means airlines are scrambling to fill seats and fares
continue to drop.
   In our test, the discount carriers delivered on their promise of no-fril=
ls
efficiency. We never lost a single piece of checked luggage. Airport
check-in was a snap: we arrived about an hour before each flight, and the
staff found our reservations with nothing more than a passport. All the
carriers flew full-size jets (no puddle jumpers). On every flight, the
staff was upbeat, polite and fluent in English.
   There were, however, some hassles along the way. For starters, there's t=
he
issue of the remote airports like the one used by Ryanair in France. The
atmosphere inside the terminal at Beauvais was so informal that a group of
French political-science students felt free to unpack a soccer ball and
start a lively scrimmage in front of the check-in counters -- accidentally
striking one passenger with the ball.
   "Normally there is a lot of security around that would prevent you from
playing football in the airport," said Jocelyn Parrot, 22, one of the
students.
   An official from Ryanair said, "Cool. That's what we like see, people
enjoying themselves at the airport." He added that the Beauvais airport is
in the process of building a new terminal but that in general Ryanair
prefers "simple facilities."
   Despite the unusual airport, Ryanair delivered on efficiency. Our flight
to Spain, listed as almost two hours long, managed to arrive in Spain a
startling 55 minutes early. (As soon as all scheduled passengers arrived,
the plane simply took off.)
   Not all our flights were so punctual. While European discounters general=
ly
have a good record for punctuality, our trips on KLM's Basiq Air, TUI AG's
Hapag-Lloyd Express, and Eurowings-owned Germanwings, all arrived between
15 minutes and an hour behind schedule.
   Landing the lowest fares proved more complicated than it sounds. To get
the hyped "taxi prices," you must often book weeks in advance, or fly at
awkward times. (Airport gate time is often cheaper for airlines in the
early morning or late at night.) Flying on slow days, including Tuesday,
Wednesday and weekends can also help you land a deal.
   Taxes and fees can drive up the total ticket price significantly. Our
ticket from Paris to Barcelona cost 40 euros on Ryanair. But tack on 12
euros in government taxes and 8 euros in other fees, the total was above
60 euros. Some charged extra fees if you paid with a credit card. EasyJet
added about $7 for paying with an American Express card.
   Adding to the challenge, these carriers don't show up on booking sites
like Expedia.com, and there isn't another site that consolidates all the
discount carriers. The closest thing is openjet.com, which scours fares on
seven European discount sites, including easyjet.com and volareweb.com.
But it's only marginally useful as a booking tool, since major carriers
are excluded, including Europe's largest discount carrier, Ryanair.
   During booking, we were constantly reminded that these airlines don't
cater to Americans. The Web sites for most, including ryanair.com and
germanwings.com, list prices only in British pounds or euros. There were
also translation glitches. Hapag-Lloyd Express's hlx.com, for example,
requested a "lastschriftverfahren" number when we tried to buy a ticket
with a credit card.
   Europe's budget airlines also generate extra revenue by selling food,
alcohol and duty-free items in flight. Sometimes the salesmanship is
pushy: At 8:20 a.m. on Ryanair, the staff suggested that passengers
"choose from a selection of top brand alcoholic drinks." When we tried to
order tomato juice shortly before 9 a.m., the flight attendant suggested a
beer.
   While most of these carriers don't offer inflight entertainment, like TV
screens or even headphones, they still manage to bombard passengers with
ads. Ryanair's headrest flaps advertised Mars candy bars. On easyJet, the
airsickness bags are covered with ads for a photo-developing company.
"Don't be Sick, Come to Klick," reads the slogan on the bags. If you don't
need the bag in-flight, you can use it later as an mail-in envelope to
send your vacation snapshots off for developing.

CARRIER/ROUTE: Ryanair/Paris-Barcelona (ryanair.com)
   HIGH POINT: Our flight arrived 55 minutes early.
   LOW POINT: Flew out of tiny airports more than an hour away from the city
center.
   COMMENT: Cheap prices and 86 destinations, but it has slashed every perk
-- including reclining seats.

   CARRIER/ROUTE: easyJet/London-Paris (easyjet.com)
   HIGH POINT: No assigned seats meant speedy loading.
   LOW POINT: Our new suitcase got some black smudges.
   COMMENT: Serves 44 destinations and is one of the few discounters to fly
to Athens, this summer's Olympics host city.

   CARRIER/ROUTE: Basiq Air/Barcelona-Amsterdam (basiqair.com)
   HIGH POINT: Offers online check-in: You can print your own boarding pass
before hitting the airport.
   LOW POINT: Check-in was tough to find since the tiny carrier wasn't list=
ed
on any major airport signs.
   COMMENT: Played cheesy music over the loudspeaker during the flight
(example: Back Street Boys).

   CARRIER/ROUTE: Virgin Express/Amsterdam-Rome (virginexpress.com)
   HIGH POINT: Posh leather seats. And you can buy extra leg room for 10
euros.
   LOW POINT: Like most discounters, just 29 inches between most rows. (U.S.
airlines have 32-34 inches.)
   COMMENT: Good inflight magazine with lots of tips -- like where to buy
Camper shoes in Mallorca.

   CARRIER/ROUTE: Hapag-Lloyd Express/ Naples-Cologne (hlx.com)
   HIGH POINT: Easy check-in. Like most discounters, you just show your
passport and they find your booking.
   LOW POINT: Plane arrived more than an hour late. No staff came to the ga=
te
to explain the delay.
   COMMENT: Sometimes flies at odd times, like early mornings or late
evenings, when gate times can be cheaper.

   CARRIER/ROUTE: Germanwings/Cologne-Budapest (germanwings.com)
   HIGH POINT: Doesn't charge extra for transporting ski equipment.
   LOW POINT: Plane arrived 30 minutes late. (But the pilot explained why:
Two kids were traveling on passports without photos in them.)
   COMMENT: Plane was full of advertising, including a nasal-cream ad on the
cocktail napkins.

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Copyright 2004 AP

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