French premium start-up, Dreamjet, has outlined more details about its proposed transatlantic flights between Paris and Newark Liberty International Airport after unveiling its launch plans and its La Compganie operational brand. The company, which made a formal licence application to the US Department of Transportation (DOT) in April 2014, will follow in the footsteps of L’Avion and Open Skies in offering a product tailored to the premium market from the Parisian capital using Boeing 757-200 equipment.
La Compagnie plans to launch flights from Paris Charles de Gaulle Airport to Newark from July 11, 2014 initially on a five times weekly basis using a 74-seat 757-200. A sixth weekly flight will be added in September 2014 and a daily schedule adopted in November 2014, although one departure every two weeks will be blocked for routine ground maintenance. A second aircraft will arrive in December 2014 to further boost frequencies or introduce a second transatlantic route.
In its formal US DOT application for an Exemption and Foreign Air Carrier Permit, Dreamjet said it had plans to expand its transatlantic network and “possibly add flights” from other European cities in the future. It said approval of its application “will result in increased travel choices, greater service options and enhanced competition, thereby benefiting consumers in the United States, the Member States of the European Union and the European Common Aviation Area”.
The business first made an application to the French Direction générale de l'aviation civile (DGAC) in January this year and in late March 2014 was awarded its operating licence and authorisation to serve the Paris – New York market, subject to certain financial obligation and the award of a valid air operator’s certificate (AOC) by the French Department of Civil Aviation for Safety.
Although there has been a growing interest in the transatlantic market over the past couple of years the main growth has been from the low-cost sector as the likes of Norwegian and later this year WestJet have expanded into this area. However, there has been little interest for more premium services between Europe and North America with previous carriers like Eos Airlines and SilverJet failing to make the grade.
La Compagnie’s French predecessor, L’Avion, launched operations on January 3, 2007 between Paris Orly and Newark using two 757-200s. But just 18 months later on July 2, 2008 a £54 million deal was agreed for the carrier to be sold to British Airways (BA) and its full integration into the UK carrier’s OpenSkies business, which had launched operations just one month earlier. The two carriers were officially merged on April 4, 2009 and now operate under the OpenSkies brand, a wholly-owned BA operation flown under L’Avion’s original Elysair French operating certificate.
"It is not the same model as has been tried before. It is not a deja vu," said Peter Luethi, co-founder and deputy chief executive officer, La Compagnie CEO said at a press conference in New York this week announcing the launch. "It is not going to be the most luxurious business class, but it will be the best for the price."
Although L’Avion had offered an all-Business Class offering seating 90 passengers, its successor OpenSkies has actually offered a mixed arrangement and now configures its three aircraft with 20 First Class, 28 Business Class and 66 Economy seats, providing seating for 114 passengers. Luethi acknowledges that La Compagnie’s 74-seat interior will “not be the most luxurious business class” on the market, but “will be the best for the price".
La Compagnie will be entering a competitive market as alongside the OpenSkies flights between Paris Orly and New York JFK and Newark, United Airlines offers flights between Paris CDG and Newark, Delta has a link between Paris CDG and Newark, while Air France, American Airlines and Delta Air Lines and XL Airways France flies between Paris CDG and New York JFK.
In our analysis, below, we look in closer detail at the Paris - New York market. Around 1.1 million bi-directional O&D passengers travel in the Paris - New York market every year with many more connecting to other destinations from the two cities. Since 2004 O&D demand between the two cities increased 59.1 per cent, an average annual rise of 6.6 per cent. Air France is the largest operator with a 42.7 per cent traffic share in 2013 followed by American Airlines (13.2 per cent) and United Airlines (12.2 per cent).
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