First Choice to double long haul fleet
First Choice Airways, the European launch customer for the Boeing 787, has exercised options on a further four long range ‘Dreamliner’ aircraft.
The airline originally signed up for six 787’s with options on a further six in summer 2004.
In September 2006 it exercised the options on a further two and has now ordered the final four.
This will give the company a fleet of 12 long-haul aircraft by 2013, double the size to be operated this summer.
Referring to the increased long haul fleet plans, Dermot Blastland, managing director of First Choice mainstream holidays, said: “The 787 is a revolutionary aircraft which allows us to continue to establish ourselves at the forefront of long-haul leisure travel.
“We continue to move out of the saturated no frills market and offer customers a unique holiday experience.”
First Choice Airways will take delivery of its first two 787’s in 2009 with the remaining 10 being introduced between 2010 and 2013.
Meanwhile, in an AGM statement, the company said its mainstream holidays sector – taken off sale after Thomas Cook announced a merger with MyTravel – was benefitting from the differentiated holidays on offer “despite challenging trading conditions”.
Margins for summer 2007 are running “slightly behind” last year but in line with expectations, with overall bookings down by 5%. Short haul capacity has been cut while long haul has been expanded. Short haul summer bookings are down by 12% at March 4, with medium haul down by 3%.
“The continued shift in mix towards long haul has seen a 12% increase in customers and a 19% increase in revenue,” chairman Sir Michael Hodkinson said.
Mainstream sector revenues for winter 2006-07 are up by 12%, with long haul up by 38% based on a 25% increase in capacity. Overall margins for winter are slightly behind the previous year.
“We have continued to reduce capacity in the short haul market as well as to less attractive medium haul destinations, and for the remainder of the season we have fewer holidays left to sell than at the same point last year,” said Sir Michael.
European specialist businesses are showing revenues up by 26% and customers up by 22% for summer 2007 at higher margins.
“The UK specialist business has continued to build upon an excellent perfomance in 2006, by investing in selling systems that offer the customer greater flexibility and by gaining greater control of distribution,” the AGM statement said.
The adventure division is showing revenue 4% ahead for winter and 9% ahead for summer on higher margins.
Sales across First Choice’s online businesses are up by as much as 211% for bedsononline for this summer, while laterooms.com acquired in December has been “trading strongly”.
Sir Michael said: “We are confident that our strategy of offering differentiated exclusive product, expanding our long haul programme and operating a flexible business model remains robust and will ensure that we continue to have the market leading leisure travel business.”
by Phil Davies
Phil Davies
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