Aer Lingus Adds LAX, Seats As It Seeks U.S. Corp. Clients

<B> Aer Lingus Adds LAX, Seats As It Seeks U.S. Corp. Clients</B>

By David Jonas

As some carriers consider cutting capacity across the Atlantic, Aer Lingus has opted to expand its services to tap into the underserved Irish market and appeal to corporate clients in the United States. Meanwhile, the carrier received the green light for inclusion in the Oneworld alliance.

"Five years ago, Aer Lingus was basically bankrupt. For every dollar we had, we owed $400," said Jack Foley, executive vice president of North America. "We decided to grow business markets, as well as year-round vacation markets, and focused on widening geographic regions."

Since hitting bottom with less than 400,000 annual transatlantic seats, Aer Lingus will offer 1.4 million next year, upping its capacity by another 16 percent. Los Angeles this year became Aer Lingus' newest U.S. gateway and the carrier is seeing stronger than expected traffic numbers, particularly from business travel.

"The fact that we have been able to go daily in existing markets and offer nonstop flights has worked well in attracting corporate accounts," Foley said, adding that business travelers have been flying both directly to Ireland and connecting to other European destinations, while the incentive market also has been booming. The expanded flight schedule allowed the carrier to go from fewer than 10 corporate clients three years ago to nearly 60 today.

As a result, the carrier has had to reorganize its sales department in the United States. "We have recognized that the field sales presence of Aer Lingus is not something economically feasible on a grand scale," Foley said. "The focus has changed." A few months ago, the carrier set up a department in New York that is continually staffed by 15 representatives so clients always have access. Face-to-face visits are used only when warranted.

Meanwhile, Aer Lingus will strengthen its position in the market when it officially joins Oneworld in a few months. Bilateral agreements with American and British Airways already have been finalized and Aer Lingus linked up with the AAdvantage frequent flyer program last month. "We needed a strong relationship with a domestic U.S. partner because under the U.S.-Irish bilateral we never will serve 10 or 15 North American gateways," Foley said. Aer Lingus will leverage technologies used by Oneworld members to kickstart its own fledgling e-commerce initiatives. Electronic ticketing, for example, will be a top priority in 2000. In return, the alliance pads its dominance at London's Heathrow Airport as Aer Lingus contributes a fair share of coveted slots.

In fact, there is a mini arms race being waged at Heathrow. The Star Alliance last week bolstered its presence there by adding British Midland to its network.

In other developments, Foley said Aer Lingus has no intention of changing its 8 percent commission structure for U.S. travel agents. "If I can find a fair solution to say, 'here's how much distribution is worth,' then I would implement it."

Foley also pointed out that immigration pre-clearance for U.S. business travelers heading back has been "a huge benefit for the Aer Lingus product." Ireland is the only country to have the program in place and allows returning travelers to bypass immigration lines and go "from the airplane to the parking lot in seven or eight minutes." Also, the carrier next year will add a seventh Airbus 330 to its transatlantic fleet.