jaguar

When low-cost carrier Independence Air began flying last year, it added service to many cities that had previously been shunned by discounters. That sent fares plummeting in many markets. Now, with I-Air's future looking bleak, many of those communities are concerned. One city at the forefront is Charleston, W. Va., where I-Air's service made it the first-ever discounter to fly to West Virginia. "Independence brought an excitement into the market," Charleston airport director Rick Atkinson tells the Charleston Daily Mail. A low-fare carrier "is something the marketplace had desired for a long time," he says, adding that he hopes I-Air's success in the city will attract other discounters should the carrier cease flying. Similar sentiment was echoed in Columbia, S.C., where an editorial in the city's The State newspaper calls I-Air's bankruptcy "worrisome." It writes that the carrier "brought some needed fare competition to Columbia, and if it folds, the (region's) air service will be the worse for it." The Post-Standard of Syracuse, N.Y., notes that I-Air had "an immediate impact on air fares in Syracuse when it began flying here," dropping fares on some routes from $900 to just $118.

In Charlotte — a large US Airways hub —The Charlotte Observer (free registration) reported that "US Airways controlled 94% of the Charlotte-to-Washington market and charged an average one-way fare of $319" for the roughly 500-mile flight before to I-Air's arrival. And after I-Air's arrival? "US Airways controlled just 54% of the market, compared with Independence Air's 29%, and charged a one-way average of $182, or 43% less," The Observer writes. But, one of I-Air's biggest problems is perhaps best summed up by a report in Burlington Free Press. It noted I-Air sent fares down in Vermont's largest city, but the paper quotes Scott Milne — president and chief executive officer of Milne Travel American Express — as saying few fliers appeared willing to switch to I-Air when United matched the fares. "The few who preferred Independence Air were the Ethan Allen, independent-spirited Vermonters who said 'Damn United, they used to charge $700 on this route,'" Milne says, making a reference to Vermont Revolutionary War hero Ethan Allen.

justageek

If the kind of fares that Independence was offering were sustainable, wouldn't they still be in (non-BK) business? Seems that these cities were getting a "free lunch" that was inevitably going to come to an end.

BearX220

That's completely typical. The usual scenario:

1. Airline A monopolizes a route and charges high prices. Public complains about high fares and lack of competition.
2. Airline B enters the market with lower fares, forcing Airline A to match.
3. Public continues to fly Airline A, happy to get low fares and the usual points, miles, loyalty rewards.
4. Airline B does not peel enough travelers away and eventually pulls out of the market or fails.
5. Airline A restores fares to pre-competition state. Public goes back to complaining about high fares and lack of competition.

By the way, I happened to fly out of BTV this morning and saw how prominent the Independence Air check-in desk is in the spiffy little terminal. They'll miss it.

prhs1989

In your five points, you must be describing the people of Detroit and Minneapolis. The Northwest Effect.

gsupstate

DH just couldn't sustain the fare levels using such a high percentage of RJ's. Hi seat cost per mile flown vs larger aircraft.


GSP desparately needs B6 or FL (not WN) to fill our vacuum if DH indeed does leave us. Indy has/had a GREAT product, from the passengers' viewpoint. Most everyone who's flown them has praised the service and employees. From what I've heard, GSP has been a very strong market for DH. Should be also for another LCC, should DH go under...

GWU ESIA STUDENT

Why not WN?

GotCalcio4

Because B6 and FL emphasize service, unlike Greyhound Air aka WN.

gsupstate

Mainly for reasons others have posted here. Must admit, haven't flown WN in about 10 years, but my last experiences were horrible. Cramped, smelly flights. I hate their boarding procedure.

I've flown FL and find them vastly superior, plus they have a front cabin you can upgrade to. B6 has such a reputation, and I like their image better than WN's. I can't stand the newer paint scheme on WN planes.... Just personal opinions here....

DanJ

All the other reasons I can understand, but why does the paint scheme matter? The plane could be bare metal, and most of the time, you'd never know it.

gsupstate

Aesthetics are important to some people, not to others. I'm in the former group.

BearX220

It's so easy to slam WN on aesthetic grounds, based on old preconceptions. And I, EQM addict that I am, don't fly them much either. But I did 3 WN segments in 2005 -- once because they were much cheaper, twice because of AS cancellations/delays/incompetence -- and WN impressed the hell out of me each time.

CLEAN planes, great, can-do staff, on-time operations, excellent service. When I needed WN to get me home on a night AS imploded, everyone I encountered was charming and helpful. I don't get that from my usual airlines.

Most impressive was landing at BUR, sweeping up to the gate right off the runway, and having the ground crew attack the plane like it was making a pit stop at Indy: we were deplaning less than sixty seconds after our wheels touched the ground. Reminded me of all the minutes/hours I've pi@@ed away on NW and DL arrivals, idling on the tarmac while the airline "finds someone" to dock us or operate the jetway.

I hate to say it, but from a human factors and operational standpoint, WN is the best airline in the country, and one day I'll finally decide upgrades and miles aren't worth the grief, toss away my gold cards, and just fly who's best.

Don't knock WN. They're what the world is coming to.

MFLetou

Bear,
Like any other airlines, WN has its ups and downs. Frankly, over the past year or so, if you talk to frequent WN travelers they'll tell you there have been a lot more downs.

You obviously had a good experience. I'm actually a shareholder so I agree that operationally they do a good job. But I won't fly them because I've had so many problems with their BWI hub and I hate having to choose whether to eat or sit in a middle seat, which is what it boils down to if I'm traveling and can't check in online.

The size of their aircraft dictates that they can't fill the void from DH in some markets, so that isn't a solution for a lot of smaller cities.