Low Cost Airline News - North America.

Oct 1, 2007

The Next Phase of Low-cost is budget, but no-frills no longer. The 'first phase' of low-cost carriers is over; emphasis shifts to little luxuries. Lounges, leather seats, extra leg room, speedy boarding and frequent-flyer miles: new-style, low-cost airlines aren't skimping on the extras in their effort to woo high fliers. A new breed of budget airline has emerged that's spurning the golden rules of the tried-and-true low-cost formula -- such as having a single type of aircraft and offering point-to-point service only. The new model introduces paying perks, such as extra inches to stretch the legs, as a way of differentiating from competitors and sweetening the margins. 'No low-cost airline can survive without the business customer in the long term.' Sep 27, 2007

Although low-cost carriers haven't signed up for any newly emerging distribution plans, it is a definite possibility. The new model includes participation in global distribution systems without any cost to the airline and streamlined booking for non-interline connections between the budget carriers. Sep 24, 2007 AirTran Airways AirTran Airways pilots, represented by the National Pilots Assn., voted 788-496 to reject a tentative labor agreement that NPA's board had negotiated with management and endorsed last month. AirTran said it will resume negotiations with NPA in an effort to reach a new accord. Sep 25, 2007

AirTran Airways, New York LaGuardia

Verified Identity Pass, a Registered Traveler provider, announced a partnership with AirTran Airways to launch Clear checkpoints at New York LaGuardia's Central Terminal. "There really aren't defined benefits," an ATA spokesperson said. "If you're a Registered Traveler, you still have to take your coat off, still have to take your shoes off and still have to take your laptop out, so what's the benefit?" Sep 26, 2007

Frontier Airlines Frontier Airlines' traffic grew 23.6% in August to 955.6 million RPMs on a 11.9% lift in capacity to 1.1 billion ASMs, producing a load factor of 87%, up 8.2 points. Sep 27, 2007 JetBlue Airways JetBlue Airways will begin offering nonstop service from Portland to Orlando, Fla., beginning in January. The New York-based carrier will begin daily flights on Jan. 10, with fares expected to be around $99 each way, said JetBlue spokesman Sebastian White. Sep 27, 2007

JetBlue Airways JetBlue Airways today continues to expand in the Sunshine State with the addition of nonstop service between Orlando and three cities in the Northeast -- Buffalo and Rochester, NY, and Portland, ME. Sep 26, 2007 JetBlue Airways, Boston Logan JetBlue Airways at Boston Logan International Airport, is making it even easier for Hub residents to jet off to the Sunshine State as it adds extra flights between Boston and Florida just in time for snowbird season. Sep 26, 2007

Midwest Air, AirTran Airways

Midwest Air, trying to hold off a takeover bid by AirTran, reached out to other potential investors in the months leading up to the offer from Northwest and TPG. "Over the course of the next several months, we contacted a number of potential strategic partners," Midwest said in SEC filings. The airline didn't name companies other than TPG and Northwest. Sep 28, 2007 Skybus. Boston Skybus is making rock bottom-priced fares its main selling point in the battle for passenger numbers Skybus, a four-month-old US startup, is building up a national route system by looking for airports that are in effect alternatives to the established alternatives. In New England, rather than choosing an established alternative to Boston Logan such as Manchester, as Southwest did a decade ago, Skybus instead chose Pease airport in Portsmouth, more than 50 miles from Logan. Sep 25, 2007 Skybus, Washington Skybus, a four-month-old US startup, is building up a national route system by looking for airports that are in effect alternatives to the established alternatives. Skybus serves Richmond, about 100 miles south of Washington, rather than Baltimore/ Washington International that has been the low-fare alternative to the two main Washington airports. Sep 25, 2007 Southwest Airlines Southwest Airlines said in an investor update yesterday that third-quarter unit costs will rise 4%-5% owing mainly to a $25 million charge related to its voluntary employee buyout program. The cost increase is more than double its projected growth in quarterly unit revenue and caused analysts to project lower-than-expected earnings for the LCC in the quarter. JP Morgan's SWA third-quarter earnings estimate was lowered to 20 cents per share from 23 cents previously. Sep 26, 2007 Virgin America Virgin America started twice-daily Washington Dulles-San Francisco service aboard its new Airbus A319s/A320s. The startup, which launched last month, plans to begin thrice-daily SFO-Las Vegas service from Oct. 10. Routes currently served include SFO-New York JFK, SFO-Los Angeles and JFK-LAX. Sep 27, 2007

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