May 30, 2007
BusinessWeek: For years, airlines have sought to emulate the low-fare, low-cost business model of Southwest Airlines, the much-studied pioneer in the cutthroat aviation game. Terror attacks? Exorbitant jet fuel costs? Little matter, the profits still flowed at Southwest, as its ultrafrugal ways kept pace with expenses.
Now a new generation of discount carriers is set to make Southwest look downright generous. The latest breed is borrowing a page from Ryanair, the Irish carrier that roiled airlines across the continent with near-zero fares and scant amenities—and became the biggest European airline in the process. They're charging for seat assignments, checked bags, early boarding, and more. Want some water? Get your wallet.
The latest entrant in this niche of extreme budget travel, Skybus Airlines, takes to the air on May 22. The Columbus (Ohio) company is led by a small band of commercial airline veterans, including several from Southwest. Its pitch is based on using second-tier airports, lean staffing, Internet-based ticketing, revenue from beer and snack sales—and super-cheap fares starting at $10.
Get Ready to Pay for Peanuts [BusinessWeek]
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