One-On-One With Dale Moss: BA's OpenSkies Readies A Transatlantic Debut In Uneasy Times

British Airways subsidiary OpenSkies this month will launch its first route between New York JFK and Paris Orly, taking advantage of the U.S.-EU legislation from which it derives its name. OpenSkies managing director Dale Moss last month spoke with senior editor Jay Boehmer about the turbulent environment the carrier enters.

Business Travel News: Is everything going as planned for the June 19 launch?

Dale Moss: I think we're in fairly good shape. We'll always be fine-tuning the last-minute things. We now have the opportunity to go out and speak to the marketplace, corporates large and small, and we're working with the British Airways sales and marketing teams in Europe and in the United States. We like the price points we're coming to the marketplace with, which are sensible and value-added. Of course, the endorsement from British Airways, not only with the codeshare, but the ability to have the frequent flyer program, plus GDS gives us strong distribution, something start-ups would love to have. I'm as happy as an expectant father could be.

BTN: You're leveraging British Airways' global distribution system agreements, correct?

Moss: Yes. The GDS is wildly important if you want travel agency support, and we recognize they're a vital part of our distribution.

BTN: Is the BA corporate sales force actively selling OpenSkies?

Moss: They are now. They couldn't before. The Civil Aviation Authority—the U.K. governing body—had to get us the operating certificate and operating license. We got them on May 7 and 8, respectively. A week later, the U.S. Department of Transportation gave us the authority.

BTN: How do BA corporate discounts roll into OpenSkies?

Moss: We want to be part of a total British Airways branded offering of sorts, and at the same time be somewhat different and somewhat separate. To use the same mechanism that gives us an opportunity to speak to those corporates, we want to be a part of that. It will be an offering that we think is a combination of a really terrific product at very competitive price points. As we spoke of it conceptually with corporates, they were fascinated and excited and we hope they'll be supportive as we go forward.

BTN: How did the codeshare with Newark-Paris all-business-class carrier L'Avion come about?

Moss: We had always tried to fly to Orly Airport, which is a heck of a lot closer to the center of Paris than Charles de Gaulle International Airport, and it's a lot easier to get in and out. It's half the distance to Paris. When we petitioned with the authorities to try to get in there, we were not successful, and we began a discussion with L'Avion to see if we could work their presence through what starts out as a codeshare. We continue to speak to them about other opportunities to cooperate and that's a work in progress, but this gives us a chance to make it easier for customers.

BTN: Are there possibilities for other codeshares in new markets?

Moss: It's so dynamic. I take nothing off the table and put nothing on the table. We always have an eye for the future, but we have to be careful where we step in the present. We need to execute very well here. Opportunities for other ways in which we can be clever inside of Europe are of course items for consideration as we go forward.

BTN: What's the timeframe for service from other European cities?

Moss: We haven't made a final call, and there are a variety of reasons for that. We don't always want to show our hand to competition, and this gives us an opportunity to speak to a lot of different airport authorities. Cities included in the list: Brussels, Amsterdam, Frankfurt and Milan. That's not an exhaustive list, just one we've been using.

BTN: Are you looking at expanding Paris-New York frequency?

Moss: Sure. We'll look to establish stronger service offerings and schedule is a part of that. We'll look to that in the next year or two as we establish our brand. We want a very interactive relationship with customers, so we can mold and shape products in timeframes in which incumbent carriers can't move, because we're very small and want to keep that small entrepreneurial spirit.

BTN: Fifty-nine weeks ago, you probably couldn't have anticipated the highest fuel costs in history and forecasts of softening demand. Does this pose a threat to sustainability?

Moss: We've been supported by British Airways, which helps dramatically. We take advantage of the BA fuel hedge, which also helps dramatically. We have the support of the BA board, and the business plan we've given them is a five-year program. We didn't set this up to operate just in one season or for one year. There is a longer play here, a much longer play.

BTN: Also, you're not bringing an abundance of supply to the market.

Moss: Right, 82 seats each way. Our intention is to never build an airline with hundreds of airplanes. This has always been intended to be a cleverly niched carrier that will take advantage of the legislation.

BTN: Your product leans toward premium, though you're not an all-business-class carrier.

Moss: We have a business class bed and a business class seat. One is a completely flat and the other is 52-inch pitch, with a 140-degree recline. It's fantastic and I refuse to categorize both as anything other than a business seat. We have 30 seats in the back of the plane in the economy variety. It's an entirely different experience for anyone who has traveled the Atlantic.