LOW COST, LONG HAUL
Business Traveller UK|October 2022
What are the obstacles to cheaper tickets on longer routes?
ALEX MCWHIRTER
LOW COST, LONG HAUL

One of the mysteries of flying long distance at lowcost is why some routes do better than others, Why, for example, are transatlantic routes from Europe more suited to low-cost airlines than routes to Asia and Australasia?

First, some history. Low-cost transatlantic flying has been around for decades. In the 1970s I worked in the travel trade and sold many seats on what were then branded as 'quasischeduled charter airlines. These were numerous. Most operated between the UK and North America. Indeed, transatlantic low-cost flying can trace its history as far back as 1948 when Iceland's Loftleidir (the forerunner of today's Icelandair) launched transatlantic flights.

Because IATA rules at that time ensured one airline did not undercut another, Loftleidir circumvented IATA's rules by not joining IATA and flying out of Luxembourg (via Reykjavik) to the US. Services expanded in the 1960s and 1970s with larger prop-aircraft, later followed by DC-8 jets. Travellers based outside Luxembourg were taken there by bus from a number of European cities to join the flight.

But it was in 1977 when scheduled low-cost transatlantic travel really came of age thanks to Sir Freddie Laker and his Skytrain. One-way tickets London Gatwick to New York JFK were sold for £59. At the time this was considered an unbelievable fare and readers must remember that in 1977 there were no taxes/fees/ charges to inflate the final price.

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