La Compagnie Suspends Operations | One Mile at a Time

This certainly isn't a good time to be running an airline that exclusively operates transatlantic flights...

La Compagnie suspends operations

In light of President Trump's new restrictions on travel between Europe and the US, all business class airline La Compagnie plans to suspend operations:

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• The airline will discontinue their Paris Orly to Newark flights between March 18 and April 12, 2020 (which is when the 30 day travel restriction is expected to end)
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• As of April 13, 2020, the airline will resume with one daily flight, rather than two daily flights
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• The launch of the seasonal Nice to Newark flight will be pushed back from May 1 to June 1, 2020

While those passengers on canceled flights are entitled to a refund, even those on other flights through May 31, 2020, have the option of changing their flights. Those passengers can elect to change their travel dates, or can get a voucher in the amount of the ticket value that's valid for 12 months.

La Compagnie A321neo cabin

La Compagnie has come a long way

La Compagnie has come a long way since they launched operations in 2014. Historically transatlantic all business class airlines simply haven't succeeded - we've seen so many airlines try, and so many airlines fail.

When La Compagnie launched operations they were off to a rough start, but they've really come a long way:

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• The airline has had success focusing on their core Paris to New York market, as well as the seasonal Nice to New York market; they've realized expanding to other US cities and other European countries doesn't make sense
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• They recently swapped their two 757-200s with two A321neos, which feature fully flat business class seats, and free high speed wifi (not to mention better fuel economy)
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• La Compagnie offers a spectacularly good value, as they're priced way below the competition in business class
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• As of 2018 the airline was number two in terms of revenue in the New York to Paris market, after Air France

La Compagnie A321neo

I'm really rooting for the airline, because they're unique and offer something that isn't otherwise available in the market. The catch is, up until now the airline has only operated in "good" times.

Unlike some other airlines, presumably they don't have billions (or even hundreds of millions, or maybe not even tens of millions) of dollars on hand to make it through this situation if it lasts for a long time.

The company says they're well positioned for the temporary grounding, though if we see this last for many months, or if demand decreases significantly long-term, I'd hate to think that could be the end of this airline.

La Compagnie A321neo business class seats

Bottom line

I can only imagine how much the current situation is destroying La Compagnie's business model. Let's hope that this situation gets figured out pretty quickly.

Not only is there the direct impact on the airline of having to ground planes, but the longer this situation lasts, the longer it will take for demand to recover, and the harder it will be for La Compagnie to survive.

The only other transatlantic all business class service is British Airways with their Club World London City flight, and they've just grounded this for the next several months. Frankly I'd be surprised if it ever returns...