Low Cost Airline News.

ATA Airlines 

ATA Airlines is the latest US carrier to come out of Chapter 11 bankruptcy protection. The airline, which flies low-cost routes across the US and into Mexico, said its plan of reorganization had been approved. ATA has been in Chapter 11 since October 2004 and has been working to improve its financial position. Its new owners are private institutions, while Southwest Airlines has helped the carrier with purchases of some of its assets. http://www.ata.com Mar 5, 2006

ATA Airlines emerged from 16 months in bankruptcy protection Tuesday focused on "incrementally improving our operations [and] challenging ourselves to operate as efficiently as possible," according to President and CEO John Denison. Privately held ATA will depend on a streamlined route network, military and commercial charter flights and its comprehensive codeshare agreement with Southwest Airlines, which was expanded yesterday yet again. Mar 2, 2006

ATA Airlines, Southwest expand partnership. Southwest Airlines and ATA Airlines are expanding their partnership. Passengers may now use their frequent flier miles to book a trip on either carrier, and travelers can book ATA flights on Southwest's web site. Mar 2, 2006

EasyJet

EasyJet is to trial a [pounds sterling]5 priority boarding charge on its Luton-Edinburgh route, as it attempts to persuade more business travelers to use its services. The carrier is also rolling-out online check-in to enable customers to arrive at the gate just 15 minutes before departure. Up to 20% of passengers are expected to be business travelers this year. Environmentally concern passengers are also being targeted by Easyjet, which is making its green credentials known. New routes to Marrakech, Istanbul and to Rijeka, Croatia, are also being launched this summer. http://www.easyjet.com Mar 5, 2006

EasyJet will launch four-times-weekly service between Basel-Mulhouse and Istanbul from May 24, daily London Luton-Istanbul flights from June 29, four-times-weekly Luton-Rijeka service from June 30 and daily London Gatwick-Marrakech service beginning July 4. Mar 2, 2006

EasyJet introduced Internet check-in for UK passengers following a trial period earlier this month. It implemented the service at London Gatwick, Stansted and Edinburgh. It will be available to 90% of easyJet's UK passengers by April and eventually to customers across Europe. The carrier said passengers with preprinted boarding passes can arrive at the gate 15 min. prior to departure time. Feb 27, 2006

FlyBe

FlyBe is claiming to be the first low-cost airline to offer Scheduled Airline Failure Insurance, following a promise to the Government to protect passengers. The airline is understood to have made the pledge when debate was being held over whether a [pounds sterling]1 levy should be introduced to build up a pot to help stranded customers. The three-year deal with insurance firm AIG includes lost luggage, sickness and cancellation, as well as failure. http://www.flybe.com Mar 5, 2006

Indonesia AirAsia 

Indonesia AirAsia will introduce daily Medan-Penang and Kuala Lumpur-Surabaya services from March 10. It also plans to launch Surabaya-Balikpapan service and increase frequencies between Jakarta and Surabaya from thrice-daily to four-times-daily. It operates five 737-300s. Mar 1, 2006

JetBlue

JetBlue to increase prices with hopes of restoring profits. JetBlue is increasing prices in an attempt to return to profitability. The airline said it needs an increase of $10 on one-way tickets. High fuel prices caused the airline to post a loss in the fourth quarter. JetBlue hopes to continue its growth and add 35 jetliners to its fleet this year. Mar 1, 2006

JetBlue, which earlier forecast a full-year loss for 2006, instead should see a return to profit, according to JP Morgan analyst Jamie Baker, who cited the positive impact of dramatic cutbacks by primary competitor Delta Air Lines in key north-south East Coast markets that should boost JetBlue system revenue by 5%. Based on its latest schedule filings, Delta is cutting capacity significantly between the Northeast and Florida as a result of the demise of Song as an independent entity, resulting in 13 fewer daily departures across 13 markets, "a decline of one-quarter," according to JP Morgan. Actual reduction in seats is likely to come in at 32%, since Song's 757s are being replaced by smaller aircraft such as mainline MD-80s. These markets "collectively account for 34% of JetBlue system revenue," said the analyst. JP Morgan forecasts JetBlue will enjoy a revenue boost of $30 million starting with the second quarter, enough to propel it to a small profit this year. Feb 28, 2006

Norwegian

Norwegian, Norway's biggest low-cost airline, is to launch its first flights from Manchester next month as it broadens its network in the UK. The carrier will fly to Bergen twice a week from April 6 using Boeing 737s. The opening price on the route is [pounds sterling]34 one-way. Other UK flights are from Stansted to Oslo, Bergen and Trondheim. http://www.norwegian.no Mar 5, 2006

Ryanair

Ryanair founder to hold 49% of new Mexican LCC. Ryanair founder Tony Ryan has jumped into the suddenly crowded Mexican low-fare market.The Ryan family, along with Irish equity firm Kite Investments, formed RyanMex, a company that will hold a 49% stake in a new LCC dubbed AeroBus, which was unveiled at a Mexico City press conference yesterday and expects to launch in September with two 737-300s, employing up to 500 and carrying 1.5 million passengers in its first year of operation and increasing its fleet to 10 aircraft by the following year, according to Irish press reports. Mexican bus transportation company IAMSA will hold the remaining 51%. Feb 28, 2006

Southwest Airlines

Baltimore, Chicago approached Southwest, chairman says. Chicago and Baltimore have indicated that they would like to land Southwest Airlines' corporate headquarters, Southwest Chairman Herb Kelleher said. The airline has already agreed to meet with Phoenix officials. Southwest last year said that flight limits at Dallas Love Field make it hard to run its headquarters there. Mar 1, 2006

Phoenix urges Southwest to relocate. Phoenix officials want Southwest to relocate its corporate headquarters to their city. Southwest executives agreed to meet with city officials to hear a proposal, but Southwest officials stressed that no decision has been made. Feb 27, 2006

Further migration from the go-it-alone LCC business model it pioneered, Southwest will begin selling tickets through its call centers or website for select ATA-only flights that do not involve a Southwest codeshare. ATA city-pairs available through Southwest are Chicago Midway to Washington National, New York LaGuardia and Dallas/Ft. Worth; Honolulu to Las Vegas, Los Angeles, Oakland, Phoenix and Ontario (Calif.); Maui to LAX, Oakland and Phoenix; Houston Hobby-LGA, and Oakland-Hilo. Mar 2, 2006

Virgin Express

Virgin Express will start services from Brussels to Palermo (thrice-weekly), Bari (thrice-weekly, increasing to four in July and August) and Naples (four-times-weekly, increasing to five during July and August) with its summer schedule. All flights are aboard 737s. Mar 2, 2006