WPI launches new report: ‘Letting Competition Fly’ as part of Virgin Atlantic’s Second Flag Carrier campaign
WPI Strategy and WPI Economics have produce a new report on behalf of Virgin Atlantic, entitled Letting Competition Fly: The case for two national flag carriers. The report calls for increased competition at an expanded Heathrow – with the ambition of reducing fares and enhancing choice for consumers and businesses across the UK.
The report found that 18.5 million passengers are hit by higher fares at Heathrow Airport due to the lack of competition on routes. The largest airline group, IAG (British Airways), currently hold 55% of all take-off and landing slots, with the next largest groups being Lufthansa (8%) and Virgin Atlantic/Delta (7%).
Reforming the slot allocation process and introducing a second flag carrier could revolutionise competition – providing lower fares, increased connectivity, new routes and new export opportunities.