Neos and Italy-U.S. flights: 'Let's improve services and think about a loyalty program'
It is the only Italian airline to fly from Milan to New York, after Ita Airways withdrew, and now [...]
Neos Air
PMO
It is the only Italian airline to fly from Milan to New York, after the withdrawal of Ita Airways, and now doubles down with a direct flight from Palermo to the Big Apple.
In this article:
Neos, airline of the Alpitour Group, has taken a liking to it and is evolving its long-haul business model.
From the centrality of Malpensa to improved in-flight service to agreements (just with Ita) and the planning of a loyalty program: all the plans of Neos told TFC by the carrier's commercial director, Aldo Sarnataro.
Transatlantic doubling
After Ita Airways' farewell to Malpensa-New York, you are the only Italians flying this strategic route. What does this mean for Neos?
"It is a route with a lot of traffic, certainly, and a lot of competitiveness. At the same time, however, the assessment made at the beginning of this challenge was that - for those who base their network on Milan - this is a point-to-point connection very strong with significant traffic volumes. When we opened the route to commercial traffic in 2021, we were already counting on the fact that Ita was a carrier focused on Rome Fiumicino. So, the space was there and still is today even without 'touching' the spaces of other legacy carriers."
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Will you now change plans?
"We can develop our initial project even more: the focus is on leisure, both by configuration of our B787-9s-which do not include Business-and the development model. Then we were able to make inroads into the American and Italian-American markets. Our pluses are service and hospitality on board that echo Italian concepts and hospitality."
It worked so well that it attempted to double up with the start of the Palermo-New York...
"I think it is an interesting challenge, which has a twofold goal: while all the US carriers focused on Naples, we try to intercept traffic on a less "fashionable" destination at the moment, but one that has an established appeal and attractiveness. In the past, Palermo-New York has always been a profitable route. We want to defend our slots in the States and try to conquer another slice of the market by bringing Palermo-New York to full capacity in the coming years. Three frequencies per week are planned from Milan. Palermo debuts on June 9 with 2 flights per week."
Standard product, but not too...
Are there changes taking place in services on routes to the US?
"We are working to improve service on board. First of all, we diversify the offer according to the type of route: those to New York have more specific attentions, for example, and we try to meet more the individual needs of the traveler. Neos started as a charter company where the product is standard for all And usually the customer travels once a year for vacation."
On the States, however, you have "discovered" frequent flyers....
"In fact, we are trying to add more: choice of meal in Economy and improved service in Premium Economy, which, in my opinion, is no match for most Businesses. We are also rotating the menus often, and the food on board is always Italian, as well as the spirits, and offered in china plates, metal cutlery and glassware in both Economy and Premium Economy."
The configuration of the planes, however, remains standard...
"For now, yes. All our 787s provide 28 seats in Premium and 327 in Economy. There is no provision for Business, as I said, also because Premium is working very well at the moment."
No tack to another model, then...
"We are not a legacy company, but we are always looking for attractive point-to-points. Just as we are not interested in the domestic market. In the summer we increase with extra frequency flights to Toronto, for example, taking advantage of the connection to Milan of the flight from Amritsar, in the Indian Punjab. We found ourselves a right niche for our size, without going to the Asian majors that have monstrous investments and fleets in comparison."
It may be time, however, to launch a loyalty program...
"This is one of the issues we have on the table at the tourism group level (Alpitour, ed.) and we are working on. We are working on a project that can offer services, accumulation and spending points in common across all the companies in the Group, and beyond."
Relations with Ita Airways
Going back to Italy, do you plan to continue the interline agreements with Ita?
"I am increasingly convinced that with Ita focused on Rome and Neos on Milan, there may be an opportunity to systematize with a more comprehensive offering; integrating with the use of commercial agreements and increasing supply, without going to war with each other. Either we grow together or we will be more and more under the thumb of foreign carriers. And globally, agreements between carriers-even very different ones-are now a clear trend."
But what are the benefits of this collaboration?
"The goal is to take advantage of the you of feederage to Fiumicino that Ita has in its network to connect them to the long-haul routes that Ita does not operate, but we do. So the routes from Rome to Havana, Cancun, La Romana, Mauritius, Zanzibar, Mombasa. It doesn't make sense to go and operate domestic or regional flights because it is not our mission and does not adhere to the business model we believe in. Instead, we are looking for more connections and feeder routes to expand our offerings and network. However, the interline with Ita includes single ticket, baggage to destination, and collaboration on all services and products."
Is the next step a deal with some U.S. carrier?
"That would be a good thing and I hope for that in the future. For now we have made a similar agreement with Air Astana on our direct flights to Almaty, offering other points and destinations in Kazakhstan."
Do you plan to open a major base at Fiumicino, despite the agreement with Ita and the Rome-Milan split between you?
"Rome Fiumicino for leisure activity is a key base. We have a 737 and a 787 that 'sleep' in Rome. Milan is our most important base and Verona is growing very well. On pure leisure Rome is important, then it depends on what will happen with the privatization of Ita Airways and the marriage with Lufthansa. If that happens and interesting routes become free, we will evaluate them."
How will the fleet grow this year?
"For 2024 we confirm a fleet with six B787-9s and nine Boeing 737s (four Max and five NG). By the end of this year we should receive four more Boeing 737Maxes, hoping for no further delays in the supply chain."
