
Some good ideas never take off.
We learned this weekend that JetAmerica, the upstart airline modeled after Europe's Ryanair and selling $9 seats, is never going to get off the ground.
It's sad: We had been enthused that an airline was going to connect smaller communities to larger aiports—with affordable fares (such as $99 to the Caribbean). Alas, it was not to be.
As the blog Gulliver points out,
The main problem for the fledgling airline was its inability to purchase landing slots at Newark Liberty International airport. Liberty was due to be a main hub for JetAmerica's flights to and from markets it thought were "underserved"—places like Lansing, Michigan; Vero Beach, Florida; South Bend, Indiana; and Toledo, Ohio.
Appropriately, all customers will receive refunds.
We agree with The Cranky Flier when he says:
I feel bad for founder John Weikle. He seems like a complete and total optimist who wants to bring service to small communities. It's an admirable goal, but so far I've yet to see a model come even close to working that can serve that purpose.
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It's a shame that JetAmerica is out of business, because I think it could have done very well if they would have been able to execute their strategy properly. I see the biggest problem as being flying into Newark Liberty, which is a major airport that doesn't really follow the model of Ryanair. Unfortunately, this is yet another airline that has had its wings clipped to soon.
Posted By Events on July 20, 2009, 7:04 PM
There goes our first trip to NYC.
Posted By Steve N. on July 22, 2009, 4:57 AM
The reason the Ryanair model works (in Europe) is they have a large fleet of aircraft and a route map with many desirable destinations - not because they occasionally sell (some) seats for ridiculously low prices. RyanAir makes their profits on volume and fees.
No one in the airline industry took JetAmerica seriously because leasing 3 aircraft and serving 4 cities does not make you an airline. To see a low cost model that does work in this country, just look at AirTran Airways or Southwest. They both have a large fleet of Boeing 737 (and 717's too on AirTran) aircraft, and offer passengers route maps with many desirable destinations. AirTran offers Business Class and advance seating as well. Both are well-run airlines that offer a desirable product at reasonable prices.
In addition, AirTran serves Flint and Detroit in Michigan and Dayton, Columbus and Akron/Canton in Ohio as well Indianapolis- so there wasn't much room for a new start-up.
There is an old joke in the airline world: If you want to make a small fortune in the airline industry, start with a large fortune.
Smooth Skies!
Posted By Ronny K on July 23, 2009, 6:13 PM