Go considers future of inflight retail service

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The merger of easyJet and Go to create Europe's biggest low-cost airline could result in the withdrawal of Go's inflight retail service

The two airlines are discussing possible alternatives with concessionaire Alpha Inflight Retail, and are studying various business models. A decision is expected by the end of the year.

UK-based airline Go is now a wholly-owned subsidiary of easyJet. By March 2003, the carriers will merge their flight schedules to operate under the name easyJet. At present, Go provides passengers with a retail service offering fragrances, gifts and fashion accessories but easyJet only offers passengers items for onboard self-consumption. The two airlines are now discussing whether to continue Go's retail service onboard.

Go inflight services manager Andy Knight told TRW: "We are talking to Alpha Inflight Retail and easyJet in order to decide which of our services we should continue. However, our aim is to concentrate on the core business of flying passengers from A to B at a competitive rate. We will take our inflight retail service as far as we can because this business is a significant part of our annual turnover. But for the moment we are not sure what will happen."

Go's most profitable travel-retail route is from London Stansted to Rome Ciampino airport. Knight continued: "This is partly because the flight time is longer than to most of our other destinations but also because we sell bus tickets onboard for passengers to travel to the city centre. These are selling particularly well."

easyJet currently operates 47 routes from 18 European destinations and carried 9m passengers last year. Go offers 38 routes to 23 European cities and flew over 4.9m passengers in 2001.