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Good Climate For New Start Up Airlines In The US?

Keesje From , joined Dec 1969, posts, RR:
Posted (5 years 11 months 2 days 19 hours ago) and read 1826 times:

With the majors being restricted by Ch11 regulations and start ups lifting of everywhere around the world, capital being available, is the climate good for new entrepreneurs in the US?

Are there any other known plans /rumors like the GO! and DJAir initiatives?

http://www.djairgroup.com/

Current low cost airlines in the US according to Wikipedia (http://en.wikipedia.org/wiki/List_of_low-cost_airlines#United_States) are:

- AirTran Airways
- Allegiant Air
- ATA Airlines
- Frontier Airlines
- Go! (airline)
- JetBlue Airways
- Primaris Airlines
- Southwest Airlines
- Spirit Airlines
- Sun Country Airlines
- Ted (low-fare brand of United)
- US Airways
- USA 3000 Airlines
- Virgin America

4 replies: All unread, jump to last

Pilotpip From United States of America, joined Sep 2003, 3015 posts, RR: 13
Reply 1, posted (5 years 11 months 2 days 14 hours ago) and read 1809 times:

You're joking, right?

No airline is going to start up in this climate and be successful. Hell, even Virgin America can't get going right now. If the hemoraging of cash doesn't stop you, getting certificated will. There are a number of low cost carriers that have failed in recent years.

Fare wars often are the result of a new airline trying to boost business by offering tickets at prices that don't even begin to break even. Most established (I thought about using the word "healthy" but that's a stretch) airlines have enough cash to match or beat these fares. The result is the startup with little capital hemoraging all their funds in a very short time.

DMI

Kaddyuk From Wallis and Futuna, joined Nov 2001, 4125 posts, RR: 33
Reply 2, posted (5 years 11 months 2 days 14 hours ago) and read 1807 times:

The way Low-Fare airlines work are by knowing how many full fare tickets they can sell, and those seats which they cant sell at the higher fare are sold at less than cost which gives the impression that every seat is being sold on the cheap.

Infact, most carriers do something similar to a certain degree, however its a bigger department in Low Cost carriers because they have to be "On The Numbers" (Pun Intended) with their predictions.

Whoever said "laughter is the best medicine" never had Gonorrhea

AirWillie6475 From United States of America, joined Jan 2005, 2448 posts, RR: 2
Reply 3, posted (5 years 11 months 2 days 14 hours ago) and read 1796 times:

You must be joking, there are 45 pax airlines in the U.S right now. 45! And there are a few more that are looking to start in the next few years including VA which are not expected to survive. Just what we want another airline, and an LCC at that.

Aogdesk From United States of America, joined Jun 2004, 930 posts, RR: 4
Reply 4, posted (5 years 11 months 2 days 13 hours ago) and read 1792 times:

The only people that invest in startup airlines are those that like the sex appeal of being able to say "I own an airline".
Ask a venture capitalist about airlines and he/she will say something about it......after they regain composure from laughing so hard.

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