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Airline Startup Of The Week: The UK’s Extrajet

While many people would not dream of starting a new airline when many parts of the world are in lockdown due to the coronavirus, British entrepreneur James Thorpe is planning to launch a startup airline based at Leeds Bradford Airport. Called “Extrajet,” the airline intends to operate frequent flights on unserved routes from mid-sized hubs to regional airports. Using the slogan “We mean business,” Extrajet will focus its attention on business travelers by offing flights to ten top European business destinations.

Extrajet is focused on business travelers. Photo: Getty Images

The idea to create Extrajet came about following the 2008 economic crisis that saw many of the larger airlines streamline their fleets to concentrate on high capacity routes with larger aircraft while also cutting down on takeoffs and landings. The low-cost carriers that we associate with inter-Europen travel, like Ryanair,easyJet, and fellow LBA-based airline Jet2, all have aircraft with approximately 200 seats.

Business travelers will prefer jets

As a result of this, they can only make money on the high-capacity hub to hub flights. This leaves several routes that could be profitable for an airline flying smaller aircraft on underserved or not served at all routes. When you find flights to smaller regional airports, they often have turboprops rather than jets, which Extrajet thinks business travels will prefer.

This is presumably what Extrajet’s livery will look like. Image: Extrajet

For many of its routes, Extrajet plans to cater to business travelers by flying twice daily, with one flight in the early morning and a second in the evening. This is perfect for the business traveler as it will allow them to return home the same day or early in the morning on the following day.

What will the prices be like?

Extrajet is very intelligent when it comes to airfares by offering just one fare on all of its flights with discounts depending on load factors. On its website Extrajet.com the airline made the following statement:

“We will not sell airline tickets at below cost price just to compete with other airlines who have already lost money and who will continue to lose money. We think it’s far more sensible and sustainable to establish an airline that provides business flights at a reasonable and fair price.”

“We have our own unique system for pricing tickets, based on the Uber concept of collective discounts. The more people who fly, the cheaper the ticket. Starting with one price per ticket of €300 per seat (one way) on all routes and reducing the price based on increased occupancy.”

Discounts are based on the number of passengers:

“Pricing structure : 0-60 % load factor €300 one way, 61-70% load factor €287,50 one way, 71-80% load factor €275 one way, 81-90% load factor €262,50 one way and 91-100% load factor €250 one way.

The discount will only be on offer for those who register with us and buy their tickets directly off/through our website. The discount will be refunded automatically to the account of registered Extrajet customers and can then be used towards purchasing additional flights. None registered customers who buy through a GDS system will pay €300 per ticket per leg, €600 return and will not be eligible for discounts.”

On the weekends when the aircraft is not being used for business travel, Extrajet plans to make the planes available for charter to sports teams or their traveling fans.

What kind of aircraft?

Rather than buy new or lease jets, Extrajet plans to lease purchase Brazilian-built Embraer E-170 business jets that have been well maintained. Extrajet chose the E-170 not only because it suited their business model but for safety reasons citing on its website:

“There has never been a commercial airline fatality onboard an Embraer E-170 jet; therefore, they are the safest passenger jet in existence, which from a frequent travelers perspective must be a very comforting thing to know.”

Last year Belgium aviation website Aviation24.be said that Extrajet wanted to commence services from Antwerp International Airport (ANR) and also lists Leeds/Bradford and Copenhagen as being its first destinations.

Extrajet plans to lease used Embraer 170 aircraft. Photo: Getty Images

Since the outbreak of the COVID-19 medical emergency, many people have learned to work remotely for fear of catching the virus should they travel. With technology that will only get better, do you think corporate travel will return to what it once was? While Extrajet’s plan sounds good, I would not be surprised if its launch is not delayed until 2022.

What do you think? Please tell us your thoughts on Extrajet in the comments.





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