How much is a new flight route from Philadelphia to London Heathrow Airport worth to Doug Parker, CEO of US Airways Group Inc.? According to the Financial Times this week, his airline paid a "record price" for a set of takeoff and landing slots at Heathrow in preparation for its new service there.
Giving no sources or dates, the FT said the Italian carrier Alitalia sold a set to US Airways for 30 million pounds, one of several sets it has sold to other airlines. That equaled $59.4 million at this week's exchange rates, but we don't know a date to figure an actual equivalent. US Airways spokesman Phillip Gee told us a confidentiality agreement prevents the airline from saying anything about the deal. "Sorry, not much help I know," Phil says.
Then again, somebody did talk to the FT. The paper says Heathrow takeoff and landing slots have more than doubled in price in the last two years, and Alitalia is cashing in now on a bigger surge caused by U.S. airlines seeking to exploit the "open skies" treaty that comes into force at the end of March. It calls US Airways' 30 million-pound payment a "record" at Heathrow.
Comments (3)
This sounds like alot, I thought the new USAirways was trying to be a low cost carrier, plus they already have gates in London at Gatwick airport. Southwest would have never paid this amount.
Posted by JC | December 29, 2007 12:47 PM
Posted on December 29, 2007 12:47
I'm not sure that these LHR Slots are for the already announced PHL-LHR route (March 2008). It may be they are for another US Airways route not yet announced - either a 2nd PHL flight or possibly a CLT-LHR flight. The ($59M) deal for these current Slots just closed within the past 10 days and US would not likely have announced the PHL-LHR route (WITH a Starting Date and Departure/Arrival times) in November unless they already had the Slots for the route. The already announced route Slots MAY (no confirmation) have come from BMI. Whichever is the case, should be confirmed shortly with (or without) a new route announcement.
Bill
Posted by Bill Phillips | December 28, 2007 2:07 PM
Posted on December 28, 2007 14:07
Now, if Usairways can get their planes in the air out of PHL on time, that will be more of a trick
Posted by steve | December 28, 2007 12:30 PM
Posted on December 28, 2007 12:30