Milan’s close-in Linate airport is legally limited to flights within 1,500 kilometers (932 miles). That may be changing to allow all-business class transatlantic service.
The smaller airport has a draft plan that would allow it to open up to routes beyond the EU with single-aisle scheduled aircraft in an all-business class configuration.
New York is the obvious first market which had 119,000 first and business clas passengers last year to and from Milan Malpensa (including those connecting over other hubs). That’s 327 per day with an average one-way fare around $2,450 and premium revenue of more than $292 million.
- Milan Linate only permits 18 aircraft movements per hour
- It only permits point-to-point scheduled service using narrow-body aircraft to EU airports (plus non-EU countries under EU “vertical agreements” within 1,500 kilometers
The draft proposal would allow legacy carriers only to operate all-business class narrowbodies. This would mean Airbus A321 aircraft with extended range, though longer routes beyond New York are likely limited especially with winter winds headed westbound.
The only carrier with a plane currently configured for this is La Compagnie, which runs A321neos offering 76 business class seats in a 2-2 configuration. They fly Newark – Milan Malpensa currently. Linate is far more convenient.
- It’s unusual to see regulatory carve-outs for wealthier customers. This rule says economy passengers must use the farther-out Malpensa.
- Lufthansa is raising its stake in Italian flag carrier ITA Airways from 41% to 90%. It’s not obvious exactly how this factors in, but it looms large. This would allow Milan elites long haul access from Linate, rather than seeing Lufthansa’s acquisition as Milan always being fed over Rome or a German hub.
- A ‘legacy airline only’ rule runs into EU rules that have to be objective, transparent, proportionate, and non-discriminatory. And E.U.-U.S. Open Skies doesn’t allow Italy to offer an incumbent a flight that competitors cannot access.
There is potential demand, but only one flight a day makes that demand tough to capture. Non-stops into Milan will offer more flight times. Passengers might shift their time preferences somewhat for non-stop but not entirely.
The flight won’t have any connecting traffic. That offsets the ability to sell seats at a premium, and makes it harder to maintain in winter when demand softens. Meanwhile, widebodies into Malpensa can carry cargo while this flight will be at a cargo disadvantage, and existing operators are likely to compete down price. New York – Milan is a competitive market with American, Delta, Emirates, Neos, United, and La Compagnie all offering service.
Whether or not New York can work, the case for other routes being discussed on the other side of the Pond – like Boston, Washington, Chicago, Miami, Toronto, Dubai, Doha, and India – seem much harder.
It seems a bit ironic for Europe to simultaneously push for environmental efficiency in aviation, such as use of biofuels, while creating a regulatory carveout to promote business class-only flights. However,
- Airbus 321 neo/LR/XLRs are especially fuel-efficient compared to other aircraft.
- A non-stop into Linate is less flying that two connecting flights (although if there’s a direct tradeoff with another flight, it’s probably at the Linate slot level rather than with another long haul)
- Some passengers might take this flight instead of flying private/charter
- Of course, each European country’s air traffic control protectionism causes inefficient routings and extra flying that increases fuel burn 9% – 11%, making most European government environmental claims about air travel purely performative. Until they get together on a Single European Sky, everything else is just window dressing.
Still, it’s a bad look to say that (1) long haul from the convenient airport is fine only for premium passengers, not The Poors, (2) and those passengers get special dispensation over environmental obligations, too.
My own bet is that the odds are against this working. There’s a literal graveyard of all business class transatlantic options like Eos, Maxjet, Silverjet, and the British Airways Airbus A318 London City – New York JFK flight (via Shannon heading Westbound). La Compangie has survived but remains tiny.
I’m not even clear this will come to fruition. There was immediate political damage control when this story came out, reacting negatively to the idea of expanded flying from Linate. Air travel NIMBYs are an issue on the other side of the Atlantic, just like in Santa Monica, California and Naples, Florida.
(HT: Enilria)
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