Thomson flies into low-cost market

By Jeremy Skidmore Thomson is to enter the crowded no-frills airline sector with the launch next March of direct services to 11 European destinations from Coventry Airport. The operator believes that despite competition from other carriers, Thomsonfly.com has a potential market of around five million people within 60 minutes’ drive of Coventry. “There are some big opportunities because of the demand for short break and flexible holidays,” said Thomson managing director Chris Mottershead. “In the late 1990s we had few competitors beyond the big operators but now there are low cost airlines and companies like lastminute.com. “We want to use the strength of our brand to get back people who should be travelling with us.” Mottershead said the no-frills market’s rapid growth would continue over the next few years with over 10 million passengers expected to use the airlines in 2003 and 15 million by 2007. Thomson will offer services from Monday to Sunday to Palma, Valencia, Rome, Naples, Nice, Malaga, Venice, Pisa, Ibiza, Marseilles and Jersey, starting on March 31. One-way fares, including tax and charges, start from £17.99 to Jersey and £19.99 to Rome, Pisa, Venice, Nice and Marseilles. Mottershead said it would comply with Trading Standards’ demand for airlines to show all-inclusive fares, provided competitors followed suit. Thomsonfly.com will use B737-300 aircraft with 131 seats that will offer a maximum seat pitch of 30 inches. Thomsonfly.com chief commercial officer Alex Hunter said the no-frills airline had taken a year of planning. “We’ve not entered the market without serious analysis of where it is going,” he said. Coventry Airport has lodged a planning application to build a passenger terminal but will not have one in place by the time Thomsonfly.com launches. Hunter said the airline would use temporary facilities until the terminal’s completion. “Facilities are being bolted on and these are of a good quality,” he said. “We’re not going to do anything shoddy. They will be used until the terminal is built.” Hunter said Thomsonfly.com would be profitable within two years and added it would consider offering services from other airports in the UK if opportunities arose. “We will be rigorous on costs but we won’t compromise on safety or security,” said Hunter. In a swipe at other no-frills airlines, Hunter claimed Thomsonfly would offer higher standards of service than its rivals. “We have the infrastructure to offer good customer service and this is different from some other low cost carriers,” he said. Flights are now bookable online at www.thomsonfly.com and customers can select their seats for a £5 fee.