There are big savings to be had on long-haul premium tickets if you start your journey elsewhere in Europe. Alex McWhirter explains
In the years following the launch of Business Traveller in 1976, a number of savvy French business people made a remarkable discovery.
They found that Air France’s Concorde tickets could be bought more cheaply in London than in Paris. Other than the price, the tickets were identical. The only difference was that the UK ones came with London-Paris-London flight coupons, which, arguably, made them even better value. The then unsophisticated airline systems meant that coupons could be used out of sequence.
What was so remarkable about that? Until the late 1970s, trade body IATA (the International Air Transport Association) controlled air ticket pricing virtually worldwide.
It meant that when shifting currency values distorted rates, IATA quickly stepped in to raise or lower tariffs in any particular country so that none could retain a price advantage.
In the mid to late seventies, the French franc was more valuable than the British pound so there were savings to be had by purchasing tickets in London.
In which case, why didn’t IATA step in to adjust prices as it had done in the past? Because in a new liberalised era, it had lost pricing control and governments (which could have ordered their airlines to obey IATA) did not wish to be unpopular with their voters by making the cost of travel more expensive.
This happy scenario for French travellers did not last long. Fast forward a few years and the situation reversed. The pound became the strong currency and it was the turn of UK business travellers to benefit from saving thousands by buying their air tickets in mainland Europe, instead of at home.
In the decades since, fluctuating currency values have meant that canny travellers wishing to make savings on premium fare tickets choose to buy where the price is right – even if it means having to join their flight many miles away.
It is true that when the euro arrived in 2002, the scope for savings diminished because price variations in Europe largely disappeared. As I recall, there was not much of a difference between tickets bought, say, in Germany, compared with those purchased in France.
But recent times have seen significant changes. The euro itself has become a weak currency against the US dollar, UK pound and Swiss franc. Long-haul air travel has also become more competitive in areas such as Scandinavia and, closer to home, the Netherlands and Ireland where, previously, there had been limited competition.
Shrewd travellers can therefore make potential air fare savings in two areas – first, from currency price variation and, second, from opting for a new carrier anxious to build market share, or even a traditional, perhaps indirect, airline that is seeking to retain its customers. Here are some examples.
OSLO
Let’s say I need to get to Sydney. British Airways is the sole European carrier serving Australia, but it faces a threat to its monopoly from the Gulf carriers, which are now moving into Scandinavia. So BA is pricing keenly, almost too keenly, for flights to Sydney.
I chose random dates travelling out in mid to late June and returning two or three weeks later. The routing was for Oslo-London-Sydney. The cheapest prices on ba.com involved a plane change in Singapore but the saving was hard to believe.
Travelling via Oslo I was quoted 29,776 kr (£2,491) for a return business class ticket. From London, albeit on the direct service, ba.com quoted me £5,738 – more than twice the price. I could, had I wished, have booked BA’s direct flight out of Oslo for a modest extra fee and still have made a handsome saving.
AMSTERDAM
The Dutch capital has always been a place to save money on premium tickets. The Netherlands has a relatively small local market for outbound flights (when compared with the number of seats on offer) and Dutch companies tend to support the national airline, KLM.
Foreign carriers must therefore offer significant discounts if they wish to woo passengers there.
This is exactly what some Gulf airlines are doing. Qatar Airways, for example, has been running a series of seat sales for its new service, which launches next month.
I checked flights on qatarairways.com during its sale in March for two people travelling together. A return business class ticket for Amsterdam-Doha-Tokyo (for similar dates of travel to the Oslo example) for two people was €2,924 (£2,140).
From London, Qatar Airways also had a promotion. Two tickets bought for travel from London cost £3,598 – yet this is still a huge saving on the normal UK price you might pay with British Airways or a Japanese airline.
DUBLIN
UK travellers save twice. Not only is the euro weaker, there is also no air passenger duty.
Ethiopian Airlines is launching a thrice-weekly service from Addis Ababa to Los Angeles via the Irish capital in early summer. When I checked, the business class return fare from Dublin to LAX (note that further savings may become available later) was €2,482 (£1,817).
From London, British Airways (based on dates in July) would charge £3,779.
MILAN
Italy’s business capital offers euro prices and, if flying to New York from next month onwards, the chance to sample Emirates’ A380, which is not operated by the national airlines of either Switzerland or Italy.
Taking business class flights with Emirates from Milan to New York in June (the flight originates in Dubai) cost €2,226 or £1,629. From Zurich with Swiss, the fare booked some time ahead was Sfr 3,604 or £2,518.
Regular transalpine trains connect Zurich with Milan. Emirates will provide a chauffeur-driven car to Malpensa either from Milan Centrale or Lugano (the closest major Swiss station for Malpensa).
SOME POINTS TO NOTE
- Be prepared to be flexible. The savings are only worthwhile for long-haul premium fare tickets.
- All prices are subject to change. The rates shown were checked at the end of March for travel later in June with a return in early July.
- Check the booking conditions before parting with your money. These will vary from airline to airline, country to country. Tickets sold in some countries will have fewer restrictions than others.
- Remember to use the airline flight coupons in the order they are issued.
