A new discount airline is set to take flight on Tuesday that, if successful,
could prompt all U.S. airlines to rethink how they charge, and what they give
away for free.
Columbus, Ohio-based
Skybus takes off tomorrow
offering fares as low as $10 each way, with plans to serve eight destination
by the end of the summer. The airline has a playbook that borrows heavily from
Ryanair, the Irish ultra-discounter that has taken Europe by storm.
Skybus’ basic proposition is that customers will be willing to put up with a
certain amount of hassle and inconvenience if the fares are low enough.
Checking baggage? Expect to pay $5 apiece for the first two, and $50 for the
third. Priority boarding to grab a window seat (there is no assigned seating)
can be yours for $10. Expect to pay $2 for a soda or a can of Pringles, and
more for bigger meals or alcohol.
The airline is also avoiding crowded and more-expensive urban airports in
favor for locations outside of town, for example flying to Richmond, Va.,
instead of Washington, D.C., and Bellingham, Wash., instead of Seattle (for a
full list of destinations,
see
earlier post).
Continue reading below
Industry analysts have predicted Skybus will have little impact on larger
airlines, noting that most of Skybus’ destinations already have low-cost
carrier service holding down fares and questioning if Americans will be as
willing as Europeans to use out-of-the-way airports to save a few bucks.
Still, it is safe to bet that execs across the industry, always eager to find
new revenue streams, will be watching Skybus carefully as an experiment to
find out what customers are willing to pay for.
Already, other discounters including Allegiant Airlines and Spirit Airlines
have begun charging for checked bags and other amenities. And non-discounters
like Delta Air Lines Inc. have experimented with selling food on board, while
a handful of others have tried charging a premium for select seats such as
exit rows with more leg room.
Discount king Southwest Airlines Co. has already proven you can pack your
planes without assigned seating—even out of secondary airports to boot. If
Skybus learns it can fly full and have customers pay extra to pick a seat, how
long will it be until other airlines begin wondering if it is wise to be such
perks away for free? —Lou Whiteman
See Skybus' web
site
See
earlier post
