Latest news with #airlinecompetition
The Independent
02-07-2025
- Business
- The Independent
I try United Airlines' business class suite — here's what I love about it (and what I don't)
Nowhere on the planet is airline business-class competition hotter than between London and New York. This transatlantic highway in the sky generates over a billion dollars of revenue a year for carriers, with a huge portion of that coming from premium fares. So no airline can afford to rest on its lie-flat laurels. US behemoth United is clearly aware of this, having invested heavily in upgraded business-class seats that convert into double beds, launching later this year with the Dreamliner. But what are they an upgrade from? I found out, putting United's current Polaris business-class seat to the test on a flight from London Heathrow to Newark Liberty International Airport for New York. At up to $11,000 a seat there is plenty of bang for this huge pile of bucks, but also a few niggles to take note of. Checking in/security Terminal 2 is joyously tranquil when I arrive for my 9.30am departure, one of seven daily United Airlines services to Newark from Heathrow. There are so few people around, I half wonder if it's shut. I check in using a touch-screen terminal, which is a breeze. And there are cheery and helpful United staff members lingering to help with any hiccups. My Polaris business-class ticket allows me to use the fast-lane security – an almost pleasant experience, with a vanishingly small queue and friendly staff. United Club lounge The ease of the airport journey so far means I'm in a buoyant mood as I emerge into the cavernous and shiny Terminal 2 departures hall, which, like the check-in zone, is sparsely populated - artists'-impression crowd levels. I'd happily hang out here, but I'm keen to check out the United Club lounge, opposite gate 46, about a 10-minute walk from the security lane exit and opposite the gate my flight is leaving from. It's not the most exclusive club — you don't even need a business-class ticket to get in, access can be granted through credit-card perks — but for a mass-market offering, it's perfectly pleasant, with plentiful food and beverage options, a huge variety of seats, nice bathrooms, and more charging points than you can shake a USB cable at. The seat – in a cabin arranged in a 1-1-1 configuration The cabin looks quite handsome, with its silver and blue hues, and my pristine-looking window seat, 6L, is an inviting prospect. But an issue presents itself straight away — there is a mound of luxury bedding on the seat and it's a struggle to find anywhere to stow it. For a business-class seat, Polaris is lacking in square footage and I spend the first few minutes stuffing the Saks Fifth Avenue blanket and pillow into the footwell. Then I become mildly flustered finding homes for my wallet, notebook and camera – storage is limited (though slightly more generous in the middle seats). There's a slim cubby hole beneath the TV screen, another tiny one to my left (big enough for a hamster and not much else) and a little cupboard with a vanity mirror and a bottle of water. After embarrassingly trying to pry open a shelf that's stuck down, mistaking it for a compartment lid, I turn my attention to the positives, which are numerous. Firstly, the seat itself is extremely comfortable and supportive, with no complaints in the size department. It's 20.6 inches in width (versus 18.5 inches for premium economy/economy) and in lie-flat mode measures a generous 6ft 4in. That means six inches of wiggle room for my 5ft 10in frame. The bedding is pleasantly plush. There's a cuddle-worthy pillow, a beautifully soft blanket and I quickly become a devotee of the bonus foam pillow that I place in the small of my back. I'm also an admirer of the ergonomics. My elbows happily rest on armrests to the left and right and the nifty jog wheel that maneuvers the seat can be operated without budging an inch and with a micro-movement of the thumb. Only a slight forward stretch is needed to reach the thoughtfully positioned USB port underneath the screen (there's also a plug socket by the cupboard behind me), and my phone and camera can be charged using this while resting in the adjacent slot, which has a tiny lip to stop them sliding out. In terms of room for manoeuvre, Polaris isn't one of the business-class stars – and there's no privacy door. But the walls of the suite curve around to create a cozy cocoon. Once we're cruising along, I slide out the tray table to examine the gray amenity kit, which is by wellness brand Therabody and has a heart-shaped case, though Therabody would tell you it's actually fashioned after their popular massage gun device. Anyway, the case is usefully reuseable — perhaps to transport travel plugs and cables — and is stuffed with lotions and potions. The inventory comprises eye serum, hydrating mist, hand cream and lip balm, plus a wipe, socks, an eye mask, ear plugs, a dental kit and a pen. The entertainment The touch-screen measures a perfectly fine 16 inches (versus 13 inches for premium economy) and is crisp, clear and responsive, with the complimentary, brandless over-ear headphones offering pretty good audio. The set-up is good enough for movie immersion, but is far from best-in-class. For example, American Airlines offers stunning Bang and Olufsen headphones for those at the pointy end. However, watch this space, because stunning upgrades in the entertainment department are on the way, with 19 and 27-inch 4K screens and Meridian headphones arriving with the upgraded seats. The food Nothing really stands out with the food, but nothing is a let-down, either. The dishes are tasty and comforting, but won't have seared themselves into my long-term memory banks. My buffalo mozzarella with pickled asparagus salad and roasted garlic vinaigrette is pleasing, the baby greens salad satisfying, and the pan-roasted salmon with couscous risotto, roasted broccolini and artichoke salsa feels eminently healthy. The ice-cream sundae with hot fudge for dessert is deliciously naughty. As it should be. The service The customer service is frustratingly inconsistent. Those on the left side have the extremely jovial flight attendant, while my zone is patroled by an indifferent one. Not rude, but someone who's just going through the motions and not making anyone feel particularly "business class". She's giving off distinct "get through the shift" vibes. On the return flight, by contrast, it's the royal treatment through every time zone. "Can I prevail upon you to focus momentarily on the appetizers, Mr Thornhill?" I'm asked at one point, without a trace of sarcasm. United should watch out, because that crew is likely to be snapped up by Buckingham Palace. Verdict Despite limited storage space, inconsistent service and no privacy door, I'd happily circle the globe in United's Polaris business-class seat. It's impressively comfortable, with the Saks Fifth Avenue bedding adding a lovely layer of luxury, the food is good and the entertainment system is solid. And with one-way Heathrow-Newark fares from around $1,700 and return fares from $4,686, Polaris is a tantalizing treat. Rating: 4/5.
CTV News
30-06-2025
- Business
- CTV News
U.S. Supreme Court rejects American Airlines appeal of ruling barring JetBlue alliance
The U.S. Supreme Court rejected on Monday a request by American Airlines to overturn a judicial decision that found that the company's now-scrapped U.S. Northeast partnership with JetBlue Airways violated federal antitrust law. The justices turned away an appeal by American Airlines of a lower court's decision in a lawsuit brought by the U.S. Justice Department that led to the end of the proposed 'Northeast Alliance,' which would have allowed the two carriers to coordinate flights and pool revenue. American Airlines called the Supreme Court's decision not to take up the case disappointing. It had argued that the ruling by the Boston-based 1st U.S. Circuit Court of Appeals had wrongly embraced a hostility to collaboration between businesses and invalidated a joint venture that increased market-wide competition. 'The Northeast Alliance was designed to increase competition and expand customer options in the Northeast, which it clearly did during the time it was allowed to operate,' American Airlines said in a statement. Through their partnership, American, the nation's largest airline, and JetBlue, the sixth-largest, joined forces for flights in and out of New York City and Boston, coordinating schedules and pooling revenue. The 1st Circuit's November ruling came in a lawsuit the Justice Department filed in 2021 along with six states during Democratic President Joe Biden's administration. Under Biden, the Justice Department made boosting airline competition a top priority and aggressively enforced U.S. antitrust laws. Despite a change in administrations, the Justice Department under Republican President Donald Trump continued to defend the government's victory in the American Airlines-JetBlue case. The alliance was announced in July 2020 and approved by the U.S. Transportation Department just days before the end of Trump's first administration in January 2021. The Justice Department argued the alliance would hurt consumers by eliminating incentives for American to cut prices to lure customers from JetBlue, a historically disruptive rival with often lower fares. U.S. District Judge Leo Sorokin in Boston in 2023 sided with the Justice Department and found the alliance violated antitrust law. Following Sorokin's ruling, JetBlue terminated the alliance, as it sought to bolster its efforts to win approval for the now-dropped $3.8-billion purchase of Spirit Airlines, which Biden's Justice Department also successfully challenged. American Airlines, though, pressed ahead with an appeal, saying the ruling would prevent the company from entering into any similar future arrangement, including with JetBlue. But the 1st Circuit upheld Sorokin's decision. (Reporting by Nate Raymond in Boston; Editing by Will Dunham)
National Post
24-06-2025
- Business
- National Post
CUPE Calls on MPs to Reject Dangerous Airline Deregulation Plan
Article content OTTAWA, Ontario — CUPE is urging Members of Parliament to reject the Competition Bureau's latest report on airline competition, warning it poses serious risks to Canadian jobs, public safety, and national sovereignty. Article content The report calls for increased foreign ownership of Canadian airlines and the elimination of anti-cabotage rules to allow foreign carriers to operate domestic flights within Canada. CUPE, which represents 18,500 flight attendants, says these proposals would lead to job losses, lower safety standards, and greater control of Canada's airline industry by foreign interests. Article content Article content 'This is not about giving Canadians more affordable air travel – it's about handing over control of our skies to Wall Street and foreign corporations,' said CUPE National President Mark Hancock. 'Canadians want safe, reliable, and affordable service, not a race to the bottom.' Article content Despite years of deregulation, the airline industry in Canada has seen the opposite of increased competition and more affordable fares. Instead, Canadians have seen increased airline consolidation, service cuts, and skyrocketing fares, especially in remote regions. Article content 'Workers in this industry know that the Competition Bureau's recommendations ignore reality in Canada, and they ignore the importance of a Canadian-owned and operated air network, particularly in times of crisis and emergencies, whether it's evacuating people during wildfires or delivering essential goods,' said CUPE National Secretary-Treasurer Candace Rennick. 'We can't afford to hand over that control.' Article content Article content Article content Article content Contacts
Travel Weekly
20-06-2025
- Business
- Travel Weekly
Canada's competition bureau wants to open domestic routes to foreign airlines
In a market study report released June 19, Competition Bureau Canada recommended that the country open domestic flying to international airlines. The bureau also suggests that domestic-only airlines be allowed to be fully owned by international interests. And it recommended that Canada's limit of 25% ownership of Canadian airlines by a single investor be increased to 49%. "Allowing more foreign investment in Canadian airlines improves access to capital, drives growth, and promotes competition," the bureau said. The recommendations are among a variety of measures the bureau is suggesting to improve airline competition in what it views as the highly concentrated Canadian market. Air Canada had 34% of the domestic Canadian passenger share in 2023, the bureau said, followed by WestJet with 30%. Flair and Porter airlines are by far the two next largest carriers, with a combined market share of 19%. The report, however, does note that market concentration decreased across major Canadian airports from 2019 to 2023, with Flair, Porter and other airlines grabbing share from Air Canada and WestJet. Air Canada responded to the Competition Bureau report with its own slide show on Canadian airline competition. "Competition in Canada is as robust, if not more, than other jurisdictions," the airline said. In a series of pie charts, it showed Canada's domestic market against more concentrated markets, such as Australia, France and India. Air Canada said that if Canadian air travel fees and taxes were reduced 12.5%, to the U.S. level, it would spur 10.7% more demand. In May, Delta and Air France-KLM announced a WestJet investment. Delta agreed to purchase a 15% stake in the Canadian carrier. Upon closing, Delta plans to sell a 2.3% WestJet stake to Air France-KLM. Once both transactions are completed, Delta's investment in WestJet will amount to $280 million and Air France-KLM's $50 million.
CTV News
19-06-2025
- Business
- CTV News
Competition Bureau pushes for air travel changes as passengers face high costs and limited choice
Canadians appear on a "YYC" sign at Calgary International Airport in Calgary, Alta., Monday, Oct. 10, 2022. (THE CANADIAN PRESS/Jeff McIntosh) A new report from Canada's Competition Bureau has called for significant reforms aimed at increasing competition in the domestic airline market, reducing airfare prices, and reining in government powers that could hinder a truly competitive environment. The news is promising for airline passengers like Kelsey Wokke who says she just spent $1,000 for a roundtrip flight between Vancouver and Calgary. 'That's absolutely crazy to me,' she said. 'So yes I do think there should be more competition in Canada's airline prices.' 'It's also interesting how if you look at the cost breakdown of your ticket, just how much of it isn't going to your actual flight and directly into airport fees instead. So finding ways to put that money elsewhere would be nice.' Released Thursday, the Competition Bureau's report on the air travel industry advocates for a 'leverage (of) international capital and experience to strengthen domestic competition,' including through raised ownership caps for investors outside Canada. Some of the highlights include recommending major reforms to rebalance the playing field. Among them: raising the cap for foreign ownership of airlines from 25 per cent to 49 per cent, and creating a new class of 'domestic-only Canadian airlines' that could be 100 per cent foreign-owned—a model already in use in Australia. Passengers bear the burden of fees The Competition Bureau also advocated for the Canadian aviation system to make changes to its 'user-pay' model, in which airlines and passengers cover the full costs of building and operating airports and navigation services. These fees account for 30 cents of every dollar passengers pay on traditional full-service airlines, and an even higher share on ultra-low-cost carriers. The breakdown includes: Fuel tax: 1 per cent Air travelers security charge: 3 per cent Nav Canada air navigation charges: 5 per cent Airport landing, terminal, and operational fees: 20 per cent Competition commissioner Matthew Boswell argues this fee structure disproportionately impacts travelers and new market entrants, adding to the challenge of fostering a more competitive and affordable domestic airline market. 'With the right policy changes, governments can create the conditions for new airlines to grow and compete – and give Canadians access to more affordable, reliable options for flights.' Independent aviation analyst Rick Erickson called the report one of the most thorough he's seen, but warned that 'we've heard this before.' 'The structural problem is we don't have enough secondary airports, which stifles new entrants,' he said. 'And the fee structure is nuts—aviation pays more than 100 per cent of its costs. Marine pays 10 per cent, Via Rail gets a subsidy, but aviation gets punished.' Erickson supports the idea of loosening foreign ownership rules. 'We've got to allow more entrants into the market. Full stop.' Nine per cent decrease in airfare for every new competitor added Research from the Competition Bureau shows that when just one new competitor flies on a route between two cities, airfares go down by nine per cent on average. Currently, two airlines—Air Canada and WestJet—handle between 56 and 78 per cent of domestic passenger traffic at Canada's major airports. Over time, they have divided the market geographically, with Air Canada dominating the east and WestJet the west, leading to diminished competition between them, the report notes. The Competition Bureau identifies part of the problem as a restrictive regulatory environment that limits international competitors. Restrictions on non-Canadian airlines operating domestic flights, along with caps on foreign investment, have hindered new and smaller players from entering the market—restrictions the Bureau believes could be eased to foster greater competition. Balanced regulation and consumer protection Gabor Lukacs, President of Air Passenger Rights, welcomed the report's push to reduce government intervention that has historically hindered competition. 'We are pleased that the Competition Bureau adopted our position on opening up domestic air travel to foreign competition and improving transparency around subsidies for remote routes,' Lukacs said. 'Importantly, the report recommends curtailing the minister's ability to override expert decisions on anti-competitive agreements between airlines. This creates a necessary balance between political interests and consumer protections.' Lukacs also highlighted challenges with the current Air Passenger Protection Regulations (APPR), which airlines have frequently contested, driving up costs. 'The APPR has been a failure by design. Airlines complicate the claims process and litigate legitimate passenger complaints, inflating administrative costs,' he explained. 'The solution is to simplify the regulations, following the European gold standard, where passengers can quickly determine compensation eligibility and airlines comply with the law. We want profitable airlines that respect consumer rights, not those that profit by breaking the law.' 090324_flair Flair Airlines Captain Ken Symonds inspects the outside of one of the company's Boeing 737 MAX 8 aircraft, in Richmond, B.C., on Wednesday, April 17, 2024. (Source: The Canadian Press/Darryl Dyck) Opportunity in increased competition: Flair Eric Tanner, VP Commercial at Calgary-based Flair Airlines, welcomed the Competition Bureau's report but stressed that government action is essential. 'We know how difficult it is to compete in Canada's aviation market, dominated by entrenched legacy carriers, with high costs making travel more expensive than elsewhere,' Tanner said. He criticized the current 'user-pay' airport model and lack of oversight, noting, 'Airports here cost much more than in other parts of the world, and fees are unfairly structured to favour certain business models.' Tanner also highlighted that connecting passengers pay far less in fees than local travelers, calling this 'unacceptable,' and pointed out that Flair's customers often pay more in airport fees than those flying with Air Canada or WestJet. 'This report identifies the problems, but now we need government to turn these findings into policies that improve competition and make air travel more affordable for Canadians,' he said. Porter plane A Porter airplane lands in Toronto on Wednesday, March 18, 2020. Porter Airlines and Air Transat are announcing a joint venture as the two carriers look to expand their range of destinations and tap into each other's markets. THE CANADIAN PRESS/Nathan Denette 'Cautious support': Porter Porter Airlines highlighted its efforts to increase competition by expanding its fleet and route network across Canada since 2023. In an statement to CTV News, the airline says it 'sees value in several of the report's suggestions, such as opening international flights at Montreal Metropolitan Airport and exploring new aircraft technology at Billy Bishop Airport.' Porter supports raising foreign ownership limits to 49 per cent for a single shareholder but urges caution on broader foreign ownership and market access changes. The airline warns that allowing foreign carriers to operate domestic routes could disadvantage smaller airlines unless reciprocal access is guaranteed for Canadian airlines abroad—benefits that would mainly favor the largest, most established players. CTV News reached out to both WestJet and Air Canada for comment on the Competition Bureau's report and recommendations, but has not received a response.
