philb
Posts: 2645
Joined: Mon May 24, 1999 5:53 am

Oil Route Competition

Sat Jul 13, 2002 6:21 pm

The question I answered about bmi's service from ORD and IAD raised the question of why a company based in Houston should use bmi for the ORD - MAN sector when Continental fly EWR - MAN
(I also am pre-empting the usual flag wavers wanting to know why a US company would use a British airline).

The answer is that bmi operate Aberdeen (which is the UK HQ) - MAN and offered the company rates for the whole journey which pretty much equated to giving the ORD- IAH sector for free.

For the flag wavers, all the tickets are issued by bmi in the UK with United flight numbers for the MAN - ORD and v.v. sector, as the flights across the pond are Star Alliance code share.



 
Leo
Posts: 308
Joined: Wed May 24, 2006 11:32 pm

RE: Oil Route Competition

Sat Jul 13, 2002 9:33 pm

PhilB:

Oil company executives will choose for airlines that link all oil/gas industry exploration locations and HQ's:

- Houston
- London (Shell, BP)
- The Hague (Shell HQ)
- Vienna (OPEC HQ)
- Aberdeen
- Stavanger
- Tehran
- Tripoli
- Dhahran
- Bahrein
- Doha
- Dubai
- Abu Dhabi
- Almaty
- Caracas
- Jakarta

Question which carriers serve all of these destinations ?

Your routing IAH-ORD-MAN-ABZ is a lot less attractive than IAH-AMS-ABZ, from 15 August 2002 your oil men can continue a day later, ABZ-SVG, to continue SVG-AMS-TIP, or CCS, or THR, etc.

So one of the true oil industry carriers = ...
 
philb
Posts: 2645
Joined: Mon May 24, 1999 5:53 am

RE: Oil Route Competition

Sat Jul 13, 2002 9:49 pm

Leo,

Fct of life:

They'll choose the carrier that offers the most attractive fare - which currently bmi are doing, at least, on ABZ-Houston for my son in law's company.

Continental used to like to think of itself as the oilman's airline, but I gather it has lost a deal of traffic to carriers keen to meet the oil industry's demand to keep expenditure low.

I gather that for many visits between Houston and the North Sea time is not normally of the essence
but keeping costs to a minimum is.

Strange really in an industry where a single piece of equipment can cost hundreds of thousands of dollars and only last a week or so before needing refurbishing or being dumped and where a drilling delay is only regarded as "an economic disaster" when the losses exceed $20 million a day!!
 
Leo
Posts: 308
Joined: Wed May 24, 2006 11:32 pm

RE: Oil Route Competition

Sat Jul 13, 2002 10:22 pm

PhilB:

Fully agree that aggressive pricing is part of the fun.
 
Arrow
Posts: 2325
Joined: Wed Jun 19, 2002 7:44 am

RE: Oil Route Competition

Sun Jul 14, 2002 12:02 am

Leo --

Add Calgary to that list. It's a big one.
Never let the facts get in the way of a good story.
 
SR3496
Posts: 774
Joined: Sat May 06, 2000 8:21 pm

RE: Oil Route Competition

Sun Jul 14, 2002 12:33 am

You should also add Lagos (or even better Port Harcourt) as well as Malabo...they are quite important, believe me.