CLT Observer is reporting that I-Air is starting CLT service Oct. 1. Hopefully US can hold its own.
Posted on Mon, Aug. 02, 2004
OBSERVER EXCLUSIVE
2nd low-fare airline coming to Charlotte
Independence Air to pressure US Airways with flights to Dulles
TED REED
Staff Writer
A second low-fare airline is headed to Charlotte/Douglas International Airport.
Independence Air will announce today that it plans to begin eight daily roundtrip flights between Charlotte and its hub at Washington Dulles International Airport starting Oct. 1.
The flights will bring a new level of competition to Charlotte/Douglas, which has the country's highest airfares. Independence will join low-fare carrier ATA, which offers four daily roundtrip flights to its hub at Chicago's Midway Airport.
From Dulles, Independence Air will offer connections to about two dozen Northeast and Midwest cities, including Newark, N.J., Boston, Detroit and Cleveland.
Charlotte/Douglas is the largest hub for US Airways, which carries about 90 percent of the airport's passengers. The carrier's dominance has generally discouraged low-fare competitors from entering the market, keeping fares high. "We think Charlotte is a great market that will respond well to low-fare service," Independence spokesman Rick DeLisi told the Observer. "We think there is an unsatisfied demand for low-fare service not only to Washington but to the other markets we serve."
One-way fares between Charlotte and Dulles will range from $59 to $122. Tickets will be sold without restrictions that typically require Saturday night stays, advance purchase and roundtrip flights. One-way fares on one-stop flights to connecting cities will range between $79 and $199.
As an introductory promotion, Independence will sell $29 one-way fares between Charlotte and Dulles, and $69 one-way, one-stop fares to connecting cities. Tickets must be purchased by Aug. 15 for travel between Oct. 1 and Dec. 19.
Fares at Charlotte/Douglas were ranked the nation's highest in a U.S. Transportation Department survey of ticket prices in the third quarter of 2003. In that survey, the average one-way fare between Charlotte and Washington was $299. The survey combined fares to both Dulles and Reagan National Airport.
Independence Air's arrival will mean more problems for US Airways, which is trying to cut $1.5 billion in annual costs to compete with low-fare carriers. It is negotiating to wrest $800 million in annual savings from its labor unions, arguing that it can't survive if lower ticket revenues aren't matched by cost savings.
On May 8, Southwest Airlines began flying to US Airways' Philadelphia hub. US Airways responded by matching Southwest's fares. With six daily flights between Charlotte and Dulles, it is likely to match Independence Air's fares on that route as well.
Independence Air began operating from Dulles to eight cities on June 16, flying 50-seat regional jets. In November, it plans to begin adding Airbus 319 jets, seating 132 passengers on longer routes to Florida and the West Coast.
Formerly known as Atlantic Coast Airlines, the carrier was -- until June -- primarily a partner of United Airlines, feeding flights at United's Dulles hub. The two carriers parted after United filed for bankruptcy protection.
It has expanded rapidly and will serve 37 cities from Dulles by Oct. 1. It began flying to Greensboro on Sunday and will announce today that it is adding service to Huntsville, Ala., as well as Charlotte, on Oct. 1. Atlantic Coast Airlines Holdings Inc., the parent of Independence, said last week it lost $27.1 million in the second quarter, largely because of start-up costs for Independence.
"Much uncertainty remains," airline analyst Ray Neidl of Blaylock & Partners said in a recent report. He said independent flying is more risky than flying as a contractor for a major carrier, though potentially far more lucrative.
Independence Air will have grown to 600 daily departures by the end of the summer, when airline traffic normally falls off, analyst Jamie Baker of Morgan Stanley said in a recent report. Baker said the number of airline seats at Dulles has risen 172 percent this year and questioned whether there is enough demand to support Independence Air's growth.
It's too soon to gauge the impact on US Airways' operations in Washington, US Airways marketing chief Ben Baldanza told analysts last week.
New Arrival
Independence Air will fly eight daily flights between Charlotte/Douglas and Washington's Dulles International Airport.
Starts: Oct. 1.
Charlotte departures: 6:20 a.m. to 8:45 p.m.
Dulles departures: 6:20 a.m. to 8:50 p.m.
Key cities with connections at Dulles: Cleveland; Chicago; Boston; Buffalo, N.Y.; Dayton, Ohio; Newark, N.J.; New York; Portland, Maine.
One-way fares: To Dulles, $59 to $122. To other cities, $79 to $199.
Introductory fares: To Dulles, $29; Other cities, $69. (book by Aug. 15, fly Oct. 1 through Dec. 19).
Booking: www.flyi.com or (800) 359-3594. Tickets will be available after today's announcement.
Charlotte hiring: About 15 to 20 baggage handlers, customer service agents and ramp service workers.
Source: Independence Air
Posted on Mon, Aug. 02, 2004
OBSERVER EXCLUSIVE
2nd low-fare airline coming to Charlotte
Independence Air to pressure US Airways with flights to Dulles
TED REED
Staff Writer
A second low-fare airline is headed to Charlotte/Douglas International Airport.
Independence Air will announce today that it plans to begin eight daily roundtrip flights between Charlotte and its hub at Washington Dulles International Airport starting Oct. 1.
The flights will bring a new level of competition to Charlotte/Douglas, which has the country's highest airfares. Independence will join low-fare carrier ATA, which offers four daily roundtrip flights to its hub at Chicago's Midway Airport.
From Dulles, Independence Air will offer connections to about two dozen Northeast and Midwest cities, including Newark, N.J., Boston, Detroit and Cleveland.
Charlotte/Douglas is the largest hub for US Airways, which carries about 90 percent of the airport's passengers. The carrier's dominance has generally discouraged low-fare competitors from entering the market, keeping fares high. "We think Charlotte is a great market that will respond well to low-fare service," Independence spokesman Rick DeLisi told the Observer. "We think there is an unsatisfied demand for low-fare service not only to Washington but to the other markets we serve."
One-way fares between Charlotte and Dulles will range from $59 to $122. Tickets will be sold without restrictions that typically require Saturday night stays, advance purchase and roundtrip flights. One-way fares on one-stop flights to connecting cities will range between $79 and $199.
As an introductory promotion, Independence will sell $29 one-way fares between Charlotte and Dulles, and $69 one-way, one-stop fares to connecting cities. Tickets must be purchased by Aug. 15 for travel between Oct. 1 and Dec. 19.
Fares at Charlotte/Douglas were ranked the nation's highest in a U.S. Transportation Department survey of ticket prices in the third quarter of 2003. In that survey, the average one-way fare between Charlotte and Washington was $299. The survey combined fares to both Dulles and Reagan National Airport.
Independence Air's arrival will mean more problems for US Airways, which is trying to cut $1.5 billion in annual costs to compete with low-fare carriers. It is negotiating to wrest $800 million in annual savings from its labor unions, arguing that it can't survive if lower ticket revenues aren't matched by cost savings.
On May 8, Southwest Airlines began flying to US Airways' Philadelphia hub. US Airways responded by matching Southwest's fares. With six daily flights between Charlotte and Dulles, it is likely to match Independence Air's fares on that route as well.
Independence Air began operating from Dulles to eight cities on June 16, flying 50-seat regional jets. In November, it plans to begin adding Airbus 319 jets, seating 132 passengers on longer routes to Florida and the West Coast.
Formerly known as Atlantic Coast Airlines, the carrier was -- until June -- primarily a partner of United Airlines, feeding flights at United's Dulles hub. The two carriers parted after United filed for bankruptcy protection.
It has expanded rapidly and will serve 37 cities from Dulles by Oct. 1. It began flying to Greensboro on Sunday and will announce today that it is adding service to Huntsville, Ala., as well as Charlotte, on Oct. 1. Atlantic Coast Airlines Holdings Inc., the parent of Independence, said last week it lost $27.1 million in the second quarter, largely because of start-up costs for Independence.
"Much uncertainty remains," airline analyst Ray Neidl of Blaylock & Partners said in a recent report. He said independent flying is more risky than flying as a contractor for a major carrier, though potentially far more lucrative.
Independence Air will have grown to 600 daily departures by the end of the summer, when airline traffic normally falls off, analyst Jamie Baker of Morgan Stanley said in a recent report. Baker said the number of airline seats at Dulles has risen 172 percent this year and questioned whether there is enough demand to support Independence Air's growth.
It's too soon to gauge the impact on US Airways' operations in Washington, US Airways marketing chief Ben Baldanza told analysts last week.
New Arrival
Independence Air will fly eight daily flights between Charlotte/Douglas and Washington's Dulles International Airport.
Starts: Oct. 1.
Charlotte departures: 6:20 a.m. to 8:45 p.m.
Dulles departures: 6:20 a.m. to 8:50 p.m.
Key cities with connections at Dulles: Cleveland; Chicago; Boston; Buffalo, N.Y.; Dayton, Ohio; Newark, N.J.; New York; Portland, Maine.
One-way fares: To Dulles, $59 to $122. To other cities, $79 to $199.
Introductory fares: To Dulles, $29; Other cities, $69. (book by Aug. 15, fly Oct. 1 through Dec. 19).
Booking: www.flyi.com or (800) 359-3594. Tickets will be available after today's announcement.
Charlotte hiring: About 15 to 20 baggage handlers, customer service agents and ramp service workers.
Source: Independence Air
