Word: low-cost
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...major airlines fighting for their lives. Low-fare carriers are no longer simply competing on ticket price, they are also raising the bar with the services they offer. While the Big Six airlines (American, Delta, Continental, Northwest, United and US Airways) struggle with high costs and dissatisfied passengers, small, low-cost airlines like JetBlue, AirTran, Frontier and Spirit have learned to please customers, make money and grab market share, all at the same time. They have become major players in the industry. Low-fare carriers, including pioneer Southwest Airlines and the improved America West, account for 30% of the market...
...escalation of the air war is the creation of two totally new airlines. Next month United, which has been in bankruptcy since December 2002, plans to start flying its own knock-off low-fare airline called Ted. Flying initially from Denver to Las Vegas and Fort Lauderdale, it will offer customers a multichannel entertainment system called Ted TV. Ted is aimed squarely at Frontier, the low-cost airline that has eaten away at United's dominance in flights out of Denver. Frontier accounts for 16% of that airport's passengers, up from 8% five years ago. Last year Delta created...
...entrants from United and Delta face a difficult battle against this latest generation of low-cost carriers. Major airlines have tried many times in the past to start an airline within an airline to compete against low-cost competitors. All such attempts have failed. United and Delta are trying again, a sign that they realize their financial problems will not be solved simply by getting over the post-9/11 travel slump and the recent recession. "We know which way the industry is going--towards quality, low-cost carriers," says John Selvaggio, the head of Song. "We had to play...
...clear how Ted and Song can make money. The staff at both airlines work at the same high-wage rates as their mainline colleagues, yet the fares are much cheaper. One airport executive is skeptical: "Ted calls itself a low-cost operation, but it will also be a low-revenue producer." Song filled less than one of every two seats in September, the most recent month for which figures are available. And aviation sources told TIME that Song has postponed plans to add more airplanes to its fleet, raising questions about how well its business model is working...
...more religious" than traditional therapists, says Doherty, author of Take Back Your Marriage. "This generation has seen the fruits of the divorce revolution. And they don't think they have to be value-neutral about it." They also tend to be pragmatists. Many of them favor short-term, low-cost interventions based on methods with a record of proved success...