Word: airtran
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...thank Southwest Airlines for the changes--or curse it, if you are a competitor. Southwest, based in Dallas, created the basic-fare, point-to-point model the new discount carriers are adapting and profiting from. Five airlines today--AirTran, ATA, Frontier Airlines, JetBlue and Spirit Airlines--aspire to be the next Southwest, and at least two major carriers, Delta Air Lines and United, have launched or announced plans for low-fare, me-too subsidiaries (a second try for both...
...niche carriers are also nimbler. When US Airways made the surprising move after 9/11 to shut down MetroJet, its low-cost subsidiary based at Baltimore/Washington International Airport, AirTran, with headquarters in Orlando, Fla., moved into that airport within weeks. It has now built a successful mini-hub there, with 22 flights a day. The low fares have been a boon to these once obscure airports: Midway Airport in Chicago--which is served by AirTran, ATA, Frontier and Southwest--now offers 22% of all U.S. flights from Chicago, up from 14% in 1997. And while many major carriers have cut flights...
...small airlines are trying to prove that flying can be enjoyable again. JetBlue offers 24 free channels of LiveTV. Delta's low-fare Song subsidiary promises it will have pay-per-view movies and MP3 players by October. AirTran lets you upgrade to business class for only $35 above full coach fares and gives you Mrs. Fields cookies. Hooters Air's hostesses orchestrate humorous in-flight quizzes and pass out free hats and T shirts. "We're just trying to bring a bit of fun back to flying," says Mark Peterson, chief operating officer of Hooters. "It doesn't have...
...their conservative approach to safety. Only a few years ago, many new airlines were dismissed as inferior or even less safe than established carriers, in part because many of them flew older aircraft. But government regulators and carrier executives have worked together to inculcate a rigorous safety culture. AirTran, Frontier (based in Denver) and JetBlue are either flying entirely new fleets or quickly acquiring new planes to replace older stock. That not only helps with safety and the perception of safety but also is good for the books, at least in the long run. While new Boeing 717s cost...
...AirTran and JetBlue are bucking industry trends by making profits and adding flights, at the expense of the major airlines. Frontier and ATA (based in Indianapolis, Ind.) are trying new routes too, but their finances are under pressure. Frontier posted a $23 million loss for fiscal year 2003, its first loss in five years, and ATA reported a quarterly net loss of $11 million, though it still managed a slim operating profit. North American flew some U.S. troops during Gulf War II and the Afghanistan campaign, and it has also kept its civilian business going strong, especially on high-volume...