Ultra Low-Cost Carrier Takes Off
Thursday, July 2nd, 2009
When ultra-budget carrier Skybus ceased business last year, hardly anyone noticed. Big name low-cost carriers like Southwest, JetBlue, and AirTran have come to dominate the budget flying game. Other carriers have become "also rans." But a new super-cheap airline is entering the game. JetAmerica Airlines will operate on the same premise as Skybus (which is also the same as the successful European low cost carrier Ryanair). They will offer ultra cheap fares. Planes will have the most basic services (which is to say, basically no service). Anything besides a seat on the plane will cost extra. Charges will apply for checked baggage, snacks, and anything else. There will even be charges for choosing whether you want a window or aisle seat.
Budget fliers might be excited, but their joy will be tempered because JetAmerica only plans on flying to smaller markets in the US that are currently only serviced by regional airlines. Destinations like Lansing, Michigan, Vero Beach, Florida and Toledo, Ohio (all from Newark, New Jersey) hardly make JetAmerica a game-changer. However, the ultra-low fares (some dropping to $7 one-way) are enough to pique some people's interest and perhaps enough to get people flying, even if their only reason for flying is to take advantage of the low fares.
If you look closer, JetAmerica is not really an airline at all. It uses a charter service to provide crews and planes. Will this low cost approach work in the long term? Skybus was extremely vulnerable to the spike in fuel prices last year. It appears that there is little wiggle room in the ultra-budget market. However, Ryanair, with extensive marketing and their legendarily surly crews and CEO, have managed to carve out a niche and remain successful, even during last years airline industry slump. However, Ryanair serves major destinations (albeit often from secondary airports), JetAmerica has a long way to grow before it can reach the success level of the world's major LCCs.