...a new wannabe airline in an industry with way too much capacity:
http://finance.yahoo.com/news/New-lowcost-...48934.html?.v=5
http://finance.yahoo.com/news/New-lowcost-...48934.html?.v=5
Except JetAmerica (which was a pretty decent little airline in the mid 80's) isn't a 'real' airline. It's a company that sells tickets for Miami Air (a charter).If there's too much capacity, then crummy airlines like US, UA and CO would have gone out of business.
I welcome JetAmerica to our competitive skies.
John Weikle, chief executive of JetAmerica, said the subsidies will help insulate the new carrier from spikes in jet fuel prices. Higher fuel prices have contributed to the failures of at least four major airlines since 9/11. Smaller carriers have also been hurt.
Surging fuel prices helped bankrupt ultra-discounter Skybus Inc. last year. Weikle founded that Columbus, Ohio-based airline known for its $10 fares. The bankruptcy cost 450 employees their jobs.
JetAmerica's pricing scheme will share some Skybus characteristics.
Prices will start at $9 a seat and top out at $199. The $9 price will apply to the first nine to 19 seats on each plane. Passengers will pay $15 to check a bag. Food, drinks and in-flight TV will also come at a cost.