Welcome OpenSkies

In less than 24 hours OpenSkies' inagural flight will be jetting across the Atlantic. When OpenSkies was announced Eos, Maxjet, Silverjet and L'Avion were all flying their own all-business class configurations. Now, Openskies' codeshare partner, L'Avion, is the only one still flying. Interestingly enough, OpenSkies is offering a product that offers the Eos, Silverjet, and Maxjet products, respectively, in three cabins (Biz, Economy+, Economy).

Overall, OpenSkies (EC) has a very solid chance at succeeding. Below I've outlined the Pros and Cons:

Pros

1. Nothing screams success more than the aforementioned 3-class configuration. The EC product is really First, Traditional Business, and E+. It is relevant across every flying segment. The 3-cabins allow EC to charge a strong premium during traditional strong business months of June and October and discount appropriately during August and December. In addition, they have really boxed in the other carriers. For only a small premium to the market's traditional business class pricing, a customer can fly in First Class on EC. If the traditional business class seat is good enough, then it is less expensive on EC.


2. The 757's with winglets should help mitigate the rising fuel costs. To be sure, this is no life saver, but it is better than flying most anything else. (I think only Continental runs 757s to Paris on a few frequencies.)


3. Oneworld: EC is the first business class product to connect to a real Miles program.

Cons:

1. Corporate Contracts: I don't know have any intelligence on the corporate contracts out there for the New York-Paris market. But, I'm sure the market has gotten more competitive since EC entered. They will have to penetrate this market to succeed.


2. Travel Agents: Are they wary of these new business class products after the demise of all the others? It creates a hassle for them and its possible they no longer are willing to adopt change.


3. Recession: As the economy goes, so does superfluous business travel. Startups (even those backed by BA's big pockets) are sensitive to cash flow.


4. Connecting Travel: Right now it does not seem like you can purchase a connecting ticket on BA with codeshared AA flights. (i.e. ORD-JFK-ORY). I'd bet this is something they are working on.

If I was a betting man, I'd put my money on the Pros outweighing the Cons.

Correction 6/26/2008: Contrary to my initial interpertation, the Economy cabin on EC is plain, old Economy. It is not traditional Economy Plus.