Word: metrojet
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Dates: during 2000-2009
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...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...
...Perhaps US Airways? prospects wouldn?t look quite so dire if the ailing airline hadn?t tried this before. In fact, part of the new Plan B is cutting back on operations by Metrojet - the mini-airline it started a few years back as a copycat to Southwest. To save money, Metrojet flies only Boeing 737 planes just like Southwest, and often flies to secondary airports, just like Southwest. US Airways even made a smart leadership move - in a surprising break with tradition - and negotiated special arrangements with the unions in order to lower costs at Metrojet, so it could...
...Airways says Metrojet is doing so badly it might even kill the subsidiary as part of its new strategy. If they can't make money with an airline designed especially for the job, what do you think can be achieved with the parent carrier...
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