Word: valujet
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Twenty-five airlines have started up in the past seven years, and eight more are awaiting clearance from the Department of Transportation. They sport such names as Frontier, ValuJet, Air 21, Vanguard, Nations Air, KIWI and Western Pacific, and they promise that the competition is going to be different this time. They have staked their survival on two basic strategies. First, fly into a place, like Fresno, California, that the major carriers have largely abandoned. Second, don't pick the big guys' pockets; use low-fare, no-frills flights to expand the market. The idea isn't to steal market...
Ultimately, many airlines would be happy to eliminate tickets altogether. "This is definitely part of a trend to reduce passengers' reliance on travel agents and ticketing," says Julius Maldutis, who follows the airline industry for Salomon Brothers. Valujet, a profitable 16-month-old Atlanta carrier that mostly plies the Southeast, has never issued tickets; travelers get confirmation numbers that they use to pick up boarding passes at airports. Southwest Airlines began offering all passengers the option of ticketless service this month. Even giants like United and Delta are testing similar systems. "As Delta becomes more competitive," says vice president Vincent...