UAL to revive KSMF-KIAD flights
 

A Guy Called Tyketto wrote:
Responding to an upstart competitor, United Airlines said Thursday it is
reviving its daily nonstop service from Sacramento to Washington, D.C.

Is it wise for a bankrupt airline with limited resources and high cost
structure to try to compete against a low cost carrier in a predatory fashion ?

If United didn't think it could make money as the sole carrier on this route
before today, how come magically, with a low cost carrier competing with lower
prices, could UA think it could now make some money ?

And if UA will be losing money on the route, why would the bankrupcy judge
allow this ?

One can understand AA spending megabucks to kill off Legend in Dallas and
succeeding since Legend was an upstart and AA wasn't bankrupt. But United is
nowhere near being in good enough shape to kill off JetBlue. It is more likely
to be the other way around.

UAL to revive KSMF-KIAD flights
 

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[ You knew this was coming. ;) -Ed. ]

http://www.sacbee.com/content/travel...-9499522c.html

United to revive D.C. flights
JetBlue also plans nonstop service from Sacramento.
By Dale Kasler -- Bee Staff Writer - (Published March 19, 2004)

Responding to an upstart competitor, United Airlines said Thursday it is
reviving its daily nonstop service from Sacramento to Washington, D.C.

The flights to Dulles International Airport resume will June 3, about 2
1/2 years after United ended the nonstops in the travel slump that
followed the Sept. 11 terrorist attacks.

The new flight reflects Sacramento International Airport's growth as a
travel market - and the escalating skirmishes between mainstream
airlines and the new breed of discount carriers.

United's announcement came a week after low-cost airline JetBlue said it
was starting nonstop service on the same route. Sacramento airport
officials said they've been pushing United to reinstate the flights but
didn't achieve a breakthrough until the JetBlue announcement.

Industry consultant Robert Mann said it wasn't a coincidence.

"What you see happening ... is a response by United to JetBlue horning
in on their turf," said Mann, president of R.W. Mann & Co. in Port
Washington, N.Y.

He said it's unlikely United would have restored the service if not for
the JetBlue challenge. It would have preferred to continue serving the
route by feeding passengers through hub airports, he said. But United
and other mainstream carriers have been forced to follow JetBlue's lead
on other cross-country routes, he said.

"Nothing like a little competition, huh?" said an elated Barbara Hayes,
executive director of the Sacramento Area Commerce & Trade Organization.
SACTO believes improved air service can boost Sacramento's business
climate.

United spokesman Jason Schechter said the service was cut off in October
2001 as part of across-the-board cutbacks that United and other airlines
made when air travel collapsed after 9/11.

"We've always thought that the Sacramento market is strong," he said.
Asked about JetBlue's influence, he added: "We will certainly be
competitive in the market."

He said tickets go on sale Saturday. The cheapest tickets - $139 each
way - won't get offered for sale until May 4. That's the same day
JetBlue's service to Washington begins.

JetBlue's flights will be red-eye service, while United will fly during
daylight hours.

The Sacramento airport has more than held its own in recent years, even
adding five airlines since 9/11 - Aloha, Hawaiian, Mexicana, Frontier
and JetBlue.

JetBlue has caused the biggest splash lately. The discounter began
nonstop service from Sacramento to New York's Kennedy International
Airport in early March. A week later it announced the Washington
flights.

G. Hardy Acree, executive director of the Sacramento County Airport
System, said he tried to sell JetBlue on launching service to Washington
first on the grounds that Washington is a more popular destination for
Sacramentans than New York. JetBlue officials acknowledged the strength
of the Washington-Sacramento market but chose to inaugurate Sacramento
service to New York anyway because Kennedy Airport is JetBlue's main
destination, he said.

BL.
- --
Brad Littlejohn | Email:
Unix Systems Administrator, |
Web + NewsMaster, BOFH.. Smeghead! :) | http://www.sbcglobal.net/~tyketto
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