Analysts Say Cigarette-Friendly Carrier May Go Up in Smoke
LONDON (MarketWatch) -- German entrepreneur Alexander Schoppmann wants to reignite the romance of travel.
Even as U.S. towns such as Calabasas, Calif. ban smoking entirely, Schoppmann is all fired up about a business opportunity born from the anti-smoking trend -- a luxury airline that allows passengers to light up.
He plans to launch Smintair (that stands for Smoker's International Airways) in March as the first smoking-permitted carrier, with flights from Dusseldorf to Tokyo's Narita International on two Boeing 747 aircraft.
Schoppmann says he's seeking a return to simpler times, when air travel seemed exotic and cigarettes were not verboten.
"We want to restore the luxury travel experience for businesspeople," said Schoppmann, a former stockbroker based in Dusseldorf. "These people are used to making the rules, and if they want to smoke, they should be able to do so."
The plane will have 30 first-class seats and 108 business-class seats instead of the customary 416 seats. The upper level will be used as a lounge. There will be no economy-class tickets.
Observers didn't think much of the plan.
"This strikes me as a pet project. I'd be amazed if it survives," said Mike Powell, an airline analyst with Dresdner Kleinwort.
Powell agreed many travelers would like an in-flight fag, but said other considerations are more crucial for business passengers, such as the ability to build air miles, the route and the schedule and frequency of flights.
"These factors will far outweigh most smokers' keenness to light up."
Jorge Fouto, a consultant in the aerospace and defense practice of Frost & Sullivan, said he believes Smintair won't position itself solely as the smoking airline.
"It may serve as an initial differentiator to spark some interest, but ultimately it is the total service package, bonus miles and ticket fares, which will fuel the sustainability and profitability of the airline and attract more business passengers," he said.
http://articles.news.aol.com/busine...ing-niche/20060706165709990010?_ccc=6&cid=403
LONDON (MarketWatch) -- German entrepreneur Alexander Schoppmann wants to reignite the romance of travel.
Even as U.S. towns such as Calabasas, Calif. ban smoking entirely, Schoppmann is all fired up about a business opportunity born from the anti-smoking trend -- a luxury airline that allows passengers to light up.
He plans to launch Smintair (that stands for Smoker's International Airways) in March as the first smoking-permitted carrier, with flights from Dusseldorf to Tokyo's Narita International on two Boeing 747 aircraft.
Schoppmann says he's seeking a return to simpler times, when air travel seemed exotic and cigarettes were not verboten.
"We want to restore the luxury travel experience for businesspeople," said Schoppmann, a former stockbroker based in Dusseldorf. "These people are used to making the rules, and if they want to smoke, they should be able to do so."
The plane will have 30 first-class seats and 108 business-class seats instead of the customary 416 seats. The upper level will be used as a lounge. There will be no economy-class tickets.
Observers didn't think much of the plan.
"This strikes me as a pet project. I'd be amazed if it survives," said Mike Powell, an airline analyst with Dresdner Kleinwort.
Powell agreed many travelers would like an in-flight fag, but said other considerations are more crucial for business passengers, such as the ability to build air miles, the route and the schedule and frequency of flights.
"These factors will far outweigh most smokers' keenness to light up."
Jorge Fouto, a consultant in the aerospace and defense practice of Frost & Sullivan, said he believes Smintair won't position itself solely as the smoking airline.
"It may serve as an initial differentiator to spark some interest, but ultimately it is the total service package, bonus miles and ticket fares, which will fuel the sustainability and profitability of the airline and attract more business passengers," he said.
http://articles.news.aol.com/busine...ing-niche/20060706165709990010?_ccc=6&cid=403
