UAL, Delta set to woo business-class fliers

New York business travellers may see a flurry of seat upgrades and free airport lounge passes as carriers fight for the most valuable passengers when Continental Airlines and United Airlines merge.

United, Delta Air Lines and AMR Corp's American Airlines will probably step up their pursuit with better seats and perks like greater access to last-minute tickets on overbooked flights, said Chris McGinnis, a consultant and travel-blog editor in San Francisco.

At stake is a bigger slice of the $13.6 billion (Dh49.9bn) spent each year by passengers who start or end trips in New York, which no carrier dominates. More than 100 million people, including the corporate travellers who pay the most for business-class and walk-up tickets, flew through the world's largest aviation market last year.

"The airlines are going to have to shower these passengers with free lounge access or upgrades if they want their loyalty," said McGinnis.

Spokesmen for Continental, UAL's United, Delta and American declined to discuss specific plans to win business at Kennedy, LaGuardia and Newark airports.

One service the merged United-Continental should expand is United's PS three-class flights from New York to Los Angeles and San Francisco, which include lie-flat seats in first class, business-class cradle seats and as much as five more inches of legroom in coach, said McGinnis.

Delta added a perk for its American Express SkyMiles card holders that allows travellers to check one bag for free, a savings of about $50 per round trip. Continental has a similar offer through its Chase credit card.

United-Continental will displace Delta as the world's biggest carrier, and be the largest US airline across both the Atlantic and Pacific, offering more direct service from its 10 hubs.

The carriers announced their merger on May 3, and say the deal will be completed by year-end. The stiffest competition will be for business fliers who buy first-class and walk-up tickets.

Continental charges $6,149 for a walk-up ticket in business or first class from Newark to London Heathrow, while an advance-purchase coach ticket to Los Angeles is $482, according to the Houston-based carrier's website.

"The $3,000 to $5,000 ticket range is going to be a hotbed for competition," said Rick Seaney, CEO of FareCompare.com, a ticket pricing and research firm.

The carriers have also invested to spruce up facilities. Continental spent $1.5bn at Newark over the past 25 years, primarily for a new concourse and international arrivals centre.

American spent $1.3bn on an international terminal at Kennedy that opened three years ago, and is investing $30m at LaGuardia. In March, American proposed a flight slot-swap with JetBlue to expand at Kennedy.

"We want to be sure we're big in the markets that matter most to our best customers – New York to London, for example," said Dan Garton, American's Executive Vice-President for Marketing. Delta established an international hub at Kennedy airport with service to 30 new cities abroad, and is trying to expand at LaGuardia by swapping flight-slot rights with US Airways Group.

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