Word: legendizing
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...campaign to stop Legend came even as American faced charges by the Department of Justice for antitrust violations against three other start-up airlines. Now American is battling Legend on the fledgling's home turf. Beginning this week, American plans to offer its own upscale flights from Love with 56 spacious seats. "We will provide a competitive product from Love field," says an American spokesman...
American is fighting little Legend so hard because business travelers are the lifeblood of most airlines. Though these full-fare passengers--"road warriors," in air-travel lingo--make up just 10% of the typical carrier's customers, they account for nearly half its revenue. So adding or losing a few business types per flight can mean the difference between a profit and a loss--or, in Legend's case, between a new airline that thrives and one that does not. That's a daunting prospect in an industry that has seen only one airline, America West, survive...
McArtor plans to keep Legend aloft by following an adroit business strategy. The carrier uses nonunion labor and flies just one type of jetliner over a few choice routes. That way it can generate 27[cents] of revenue for every seat-mile it flies, compared with about 14[cents] for cost-laden major airlines--an advantage that should allow Legend to break even on flights that are little more than half full...
Some experts welcome Legend's full-fare approach as an overdue sign of good sense. "Economic history shows that an airline based solely on lower fares does not work," says John Tschohl, who follows the industry for Service Quality Institute, which tracks customer-service trends. "Customer service is the only strategic marketing tool a carrier can use to pull customers away from an established airline." Business traveler Galonsky would readily agree with that. "I'll be going cross-country a lot in the near future," he says. And when he does, he adds, "I will be flying Legend again...
Such intimate moments between the legend and his charges are rare, but the boxer Smokin' Joe is coaching today is his daughter Jacquelyn Frazier-Lyde, 39, who turned pro in January. Since Muhammad Ali's fierce 22-year-old daughter Laila made a splash in her pro debut last October, Frazier-Lyde has ratcheted the hype up a notch. Sounding more like her father's greatest rival, the lawyer and mother of three has vowed to carry on the Frazier legacy and "whip Laila's butt"--preferably in September, on the 25th anniversary of the Thrilla in Manila...