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Triad on Jet America's radar

Wednesday, May 27, 2009
(Updated 2:22 pm)

The Triad could be a future destination for a new low-cost airline that will begin serving mid-sized U.S. cities that it thinks larger carriers have left behind.

Clearwater, Fla.-based Jet America said on Tuesday that 34 nonstop passenger flights a week will start July 13 at Toledo, Ohio; South Bend, Ind.; Melbourne, Fla.; Newark, N.J.; Minneapolis and Lansing, Mich. Twenty-eight flights start or end at Newark Liberty International Airport. The carrier will add six more flights — from Toledo to Minneapolis — starting Aug. 14.

And in its news release announcing the new service, the airline said it could expand to the Triad. Among its "future focus cities under consideration in 2009" are Greensboro and Winston-Salem.

John Weikle, chief executive of Jet America, said the subsidies from some of the cities it will serve in July 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 the terrorist attacks of Sept. 11, 2001. Smaller carriers have also been hurt.

Surging fuel prices helped bankrupt ultra-discounter Skybus last year. Weikle founded that Columbus, Ohio-based airline known for its $10 fares. The bankruptcy cost 450 employees their jobs.

Jet America's pricing 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.

The carrier is starting out with one leased Boeing 737-800, expects to add a second in the first month, and have as many as four by July of next year. Weikle's business plans calls for an additional 189-seat jet to be leased every four months.

Each Boeing 737-800 can fly to four cities a day, Weikle said.

Weikle estimated Jet America's revenue at more than $50 million in the first year and about $150 million in the second. He compares his business model to that of Walmart Inc., which started out by serving cities of less than 50,000 people because competitors were not interested in them.

Jet America plans to serve Melbourne, Fla., with at least six flights a week. Richard Ennis, executive director of Melbourne International Airport, said Jet America's planes and nonstop routes persuaded him to support the carrier. Melbourne, a coastal community about 70 miles southeast of Orlando, recorded a 45 percent decline in passenger traffic at its airport from 2000 to 2008.

Ennis said carriers with larger jets such as the Boeing 737-800 charge less per seat, which is an advantage enjoyed by Orlando International Airport and Orlando Sanford International Airport.

"It's the only way I can beat them out," Ennis said of the neighboring airports.

Accompanying Photos

Photo Caption: An artist's rendering provided by Jet America.

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Comments

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Dogwood

May 27, 2009 - 3:45 pm EDT

If Jet America (SkyBus) comes back WARNING taxpayers do not offer them a cent of incentives. They eat and run. I do not mind if they land. But they would need to come unattached to their welfare model of crying for help.

TravKM

May 28, 2009 - 1:29 am EDT

I give them six months to a year before they shutdown. It just isn't going to work. It is ridiculous to think that flying on a state of the art jet plane should be super cheap. I'd be worried that the airline would cut too many corners. That was, in my opinion, ultimately what was behind the crash of ValueJet Flight 592 in 1996. I know pilots and other airline personnel that are overworked and/or underpaid at even the big carriers. How low will Jet America go in regards to pay? It is important to keep in mind that Independence Air was hiring flight attendants at a starting rate of about $9 an hour.

Whomever is involved with financing this venture is a fool. This airline and other ones like it all tend to operate on several misguided gambles:

1. Fuel Prices - This gamble involves betting that fuel price spikes are temporary. However the opposite is now the norm. As the economy recovers, oil consumption will rise and with that so will fuel prices.

2. Employee pay and retention - Contrary to what several companies attempt to do, you cannot continue to poorly compensate employees for crucial positions and expect that they will stay and be content. This often leads to lower performance, quality, and service thru frequent turnover and low employee satisfaction.

camelcityman27105

May 30, 2009 - 1:33 am EDT

I am no expert on business, but I do know that JetAmerica should consider locating a stop in Winston-Salem. Smith Reynolds Airport is a corporate base, with a runway that can easily handle most jet planes. The airport really could use an economic boost, and a JetAmerica destination from here would greatly stimulate the city, in my opinion. Greensboro already has an airport with several airlines — now it's time to give her sister city a chance to rebuild the historic headquarters of Piedmont Airlines, and provide this area with more-affordable flying choices. It's a shame that Winston-Salem even lacks some kind of daily commercial service, because the city is large enough to support an airline or two. Now that the FedEx air and ground operations are getting ready to launch their Mid-Atlantic hub operations between now and 2012, the need for additional airports to handle commercial flights will increase. Plus, it's always good to have a "backup" airport, especially in emergencies!

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