BA's latest transatlantic venture seen hurting Eos

By Pete Harrison

LONDON (Reuters) - British Airways' plan to launch twice-daily business flights from London's financial district to New York will pile further pressure on start-ups in the business travel niche like Eos, analysts say.

The announcement on Friday follows BA's recent plans to fly from mainland Europe to the United States and marks the airline's second salvo in a renewed battle for business travellers.

U.S.-based Eos and rival Silverjet say trading has been strong since December, when their budget business-class rival MAXjet filed for bankruptcy protection.

But analysts say the sector is vulnerable to weakening consumer sentiment, rising fuel costs and a competitive backlash from traditional carriers like BA.

"I think this is a bullet aimed squarely at Eos, targeting travellers from the City," said analyst Andrew Lobbenberg at ABN Amro. "The tactical objective is clear."

BA's service will operate from next year, and became possible after recent tests to ensure the Airbus A318 can handle London City airport's short runways.

Each plane's 32 passengers are promised a 15-minute check-in at the airport, which is located just three miles from Canary Wharf and six miles from the City of London.

Heathrow, by comparison, is about 18 miles from the City and 21 miles from Canary Wharf. It is also known for delays and overcrowding that have earned the tag "Heathrow Hassle".