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The Demise and Cost of Loosing an Airline

For almost 2 years, Independence Air brought low fares and great service to airports that never had fares as low as $29, nevertheless lower than $200 round trip. Airports like Charleston, WV and Huntsville, AL, never had a low fare carrier. Once Independence Air entered those airports, the major carriers, Delta, United, Northwest, had to cut there fares to stay competitive. The executives of Independence Air, tried something new, different and fresh. But failed to make a lasting profitable airline.

When a discount airline leaves the industry due to bankruptcy or merger, consumers take the hit. Other airlines take advantage of this and tend to start charging higher prices on their fares. Where FLYi competed with airlines like United, the instance Independence Air announced its ceasing operation notice, fares sky rocketed. But Jetblue, a more customer service friendly airline advised that they would assist customers traveling on one of Independence Air flights with fares as low as $25 for confirmed seats. Though many airlines acted as if they didn’t would not assist Independence Air passengers, airline had no choice due to a law passed by congress.

Major carriers are now shifting their business model more towards international travel because their finding it hard to compete with low fare carriers who have smaller expenses. International travel allows them to compete with less carriers, and make more money. The airline saying goes “Planes make money when their in the air, not when there on the ground” And international flight guarantees flight times of at least 7 hours.

Today’s traveling public relies on customer service and discounted airline tickets to get them where they need to go. When searching for airline tickets on a potentially failing airline, check sites like faa.gov or the airlines site to always receive updated information.

Source: www.articletrader.com