ConcordeBoy
Apr 28, 02, 3:49 pm
Now we know why US has expressed so much interest in MDW as of late!
From the CLT Observer:
The first to try was People Express. Then came Valujet, followed years later by Southeast Airlines.
Now comes another low-fare carrier, American Trans Air Inc., saying it will succeed in Charlotte where the others failed.
If confidence counts, the Indianapolis-based airline might just emerge as a viable alternative to US Airways, our dominant carrier. But in the cutthroat world of commercial aviation, brashness goes only so far.
To survive in Charlotte, ATA will need a solid business plan and deep pockets to boot.
John Tague, ATA's president and chief executive officer, says his company has both.
In an interview last week, Tague laid out his plan for competing in Charlotte, where US Airways carries more than 90 percent of the passengers who fly through Charlotte/Douglas International Airport. He also spoke bluntly of the formidable obstacles his company must overcome.
On its face, Tague's plan is simple: Offer low fares and compete vigorously in selected markets, especially those on the West Coast and in the Midwest.
Because all ATA's flights will go through Chicago, Tague harbors no illusions that he can lure passengers from US Airways on its shorter Northeastern routes or to Southern cities such as Orlando.
Tague says he expects to market heavily in Charlotte to people traveling to cities such as Minneapolis, Denver, Seattle, Los Angeles, San Francisco, Phoenix and Los Vegas.
Another hurdle for ATA is that while many Charlotte passengers complain of US Airways' high fares, some will balk at using a competing carrier because they are enrolled in US Airway's Dividend Miles frequent-flyer program.
To counter this, Tague says his airline will focus on price-conscious business travelers, as well as individuals and families traveling for recreation.
Tague said he also hopes to lure some Charlotte fliers the old-fashioned way -- by offering what he describes as superior service. The average age of the planes in his fleet, he said, is about 18 months. Many of the planes, mostly Boeing jets, have full-leather seats, he said. To avoid the pitfalls of some low-fare carriers, Tague said, ATA will offer certain components of a full-service airline -- such as assigned seating and hot meals on flights longer than 3 hours and 15 minutes. Movies will be shown on flights lasting 3 hours or more. Passengers on shorter hops will be offered sitcoms, news, business or human-interest programs.
Tague said pricing for in-flight entertainment is still being worked out, but probably won't cost more than $2. And once the headphones are purchased, he said, they can be used on future trips for free.
Like ATA, each of the low-cost carriers that failed in the past was operating under what it, too, thought was a rock-solid strategy.
Air travelers tend to be creatures of habit, and they thrive on convenience. So, despite the constant belly-aching about US Airways' vice-like grip on the Charlotte market, it is far from certain that enough disgruntled passengers will actually switch to make ATA a commercial success here.
But Tague is confident.
Despite the company's relative anonymity, ATA is the nation's 10th-largest airline, and along with Southwest Airlines, it was one of only two U.S. carriers to report a profit in the recently completed first quarter. Certified in 1981, it has had experience competing with dominant carriers in other major markets.
"This isn't rocket science for us," Tague said. "We know how markets behave to our entry. We know how (competing) companies behave to our entry. We can build financial models with an extremely high degree of financial accuracy to predict if a market will succeed or not. We know right now that we will succeed in Charlotte."
But win or lose, Tague said, the company will know "in a matter of months" whether its strategy will work in Charlotte.
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Faire du ciel le plus bel endroit de la terre c'est impossible sans Concorde!
~ConcordeBoy
From the CLT Observer:
The first to try was People Express. Then came Valujet, followed years later by Southeast Airlines.
Now comes another low-fare carrier, American Trans Air Inc., saying it will succeed in Charlotte where the others failed.
If confidence counts, the Indianapolis-based airline might just emerge as a viable alternative to US Airways, our dominant carrier. But in the cutthroat world of commercial aviation, brashness goes only so far.
To survive in Charlotte, ATA will need a solid business plan and deep pockets to boot.
John Tague, ATA's president and chief executive officer, says his company has both.
In an interview last week, Tague laid out his plan for competing in Charlotte, where US Airways carries more than 90 percent of the passengers who fly through Charlotte/Douglas International Airport. He also spoke bluntly of the formidable obstacles his company must overcome.
On its face, Tague's plan is simple: Offer low fares and compete vigorously in selected markets, especially those on the West Coast and in the Midwest.
Because all ATA's flights will go through Chicago, Tague harbors no illusions that he can lure passengers from US Airways on its shorter Northeastern routes or to Southern cities such as Orlando.
Tague says he expects to market heavily in Charlotte to people traveling to cities such as Minneapolis, Denver, Seattle, Los Angeles, San Francisco, Phoenix and Los Vegas.
Another hurdle for ATA is that while many Charlotte passengers complain of US Airways' high fares, some will balk at using a competing carrier because they are enrolled in US Airway's Dividend Miles frequent-flyer program.
To counter this, Tague says his airline will focus on price-conscious business travelers, as well as individuals and families traveling for recreation.
Tague said he also hopes to lure some Charlotte fliers the old-fashioned way -- by offering what he describes as superior service. The average age of the planes in his fleet, he said, is about 18 months. Many of the planes, mostly Boeing jets, have full-leather seats, he said. To avoid the pitfalls of some low-fare carriers, Tague said, ATA will offer certain components of a full-service airline -- such as assigned seating and hot meals on flights longer than 3 hours and 15 minutes. Movies will be shown on flights lasting 3 hours or more. Passengers on shorter hops will be offered sitcoms, news, business or human-interest programs.
Tague said pricing for in-flight entertainment is still being worked out, but probably won't cost more than $2. And once the headphones are purchased, he said, they can be used on future trips for free.
Like ATA, each of the low-cost carriers that failed in the past was operating under what it, too, thought was a rock-solid strategy.
Air travelers tend to be creatures of habit, and they thrive on convenience. So, despite the constant belly-aching about US Airways' vice-like grip on the Charlotte market, it is far from certain that enough disgruntled passengers will actually switch to make ATA a commercial success here.
But Tague is confident.
Despite the company's relative anonymity, ATA is the nation's 10th-largest airline, and along with Southwest Airlines, it was one of only two U.S. carriers to report a profit in the recently completed first quarter. Certified in 1981, it has had experience competing with dominant carriers in other major markets.
"This isn't rocket science for us," Tague said. "We know how markets behave to our entry. We know how (competing) companies behave to our entry. We can build financial models with an extremely high degree of financial accuracy to predict if a market will succeed or not. We know right now that we will succeed in Charlotte."
But win or lose, Tague said, the company will know "in a matter of months" whether its strategy will work in Charlotte.
------------------
Faire du ciel le plus bel endroit de la terre c'est impossible sans Concorde!
~ConcordeBoy