Would You Care for Some Peanuts? Matches? Cigarettes?
June 30th, 2006 by Grant in: Business
A German businessman is preparing throw a wrench in the TSA’s ban on matches and cigarette lighters. He is proposing a “smoker’s only” airline.
Smokers International Airways is working on launching the first ever smoker friendly flight from Dusseldorf, Germany to Tokyo, Japan on March 27, 2007.
Alexander Schoppmann, the founder of Smintair (get it? SMokers INTernational AIRways?) is capitalizing on the fact that there are currently no direct flights between Dusseldorf and Tokyo, much less flights where passengers can light up. Of course, this luxury would come with a hefty price tag.
The company plans on using 2 Boeing 747 jumbo jets with 138 first class and business class seats. Normally, this airplane can carry about 500 people, so considering the fact that they’re equipping their airplanes with 30% of the maximum capacity seats, you know the ticket prices will be sky high (pardon the pun).
Schoppmann plans on gaining funding for the venture through sponsorships, primarily cigarette companies.
While he’s definitely capitalizing on a niche market with no direct competition on the route, AND offering a service that no one else offers, it seems he’s catering to a fairly small market. While there are a significantly more smokers in Europe than in America, he’s still limiting his clientele.
I’d like to see how the company does, if anything as a test to see if they can make it with their business plan. I’m not sure how effective his financial strategy is, but time will tell if Schoppmann is on to something, of if he’ll just go up in, er…. smoke.
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June 30th, 2006 at 6:18 pm
As a business, I think a better approach would be to offer a smoking section rather than have the entire plane be a smokers lounge.
This would open up his market a bit and allow non-smokers to fill empty seats.
July 4th, 2006 at 4:06 pm
I think that would be a better strategy too, JoePo. Of course, it wouldn't be long before a second player joins the market and undercuts fares significantly.
In related news, the TSA is considering lifting the ban on lighters aboard US flights… However, lighters are the only thing banned by Congress, and it will take a repeal of the existing measure to lift the ban on lighters, so it'll be awhile.
Thanks for the thoughts!