United Air's Former CFO to Launch a New U.S. Budget Airline

[brooklynite]

Source: Bloomberg

The former chief financial officer of United Continental Holdings Inc. is betting that the U.S. airline industry needs another budget airline.

Andrew Levy, who also helped establish Allegiant Travel Co., is raising money for a new low-cost niche carrier designed to serve secondary airports with a reliable experience that differs from current players in the market.

“We think the opportunity exists for a real high-quality, highly reliable, extremely low fare, basic transportation service,” Levy said Tuesday. The airline, which has not yet been named, will offer “a better product and experience but still offer really low prices,” he said, comparing the venture to the past experience of Southwest Airlines Co. “I think Southwest showed that for many, many years.”

The Houston-based company has not decided on an aircraft type but is leaning toward leasing Boeing Co.’s 737-800, given the worldwide grounding of the company’s new 737 Max. The planes would seat 189 passengers, a high-density approach designed to help the company offer fares below the industry average.



Read more: https://www.bloomberg.com/news/articles/2019-04-02/united-air-s-former-cfo-to-launch-a-new-u-s-budget-airline

[hlthe2b]

1. United Airlines.

There is no such thing as "United Air". Bloomberg needs editors.

[Sherman A1]

2. I suspect that in a few months we will

just say WOW to this endeavor.

[NurseJackie]

3. Very clever!

[customerserviceguy]

9. Well done!

If by "budget airline" this muckety-muck means another cram-'em-in-there, charge-'em-to-use-the-toilet, fee grubbing airline, why didn't he just stick with United, and make them just a bit worse than they already are?

I'm looking for an airline that would not be involved in a race to the bottom. First class seating throughout the plane, no children or babies or support animals allowed. Maybe enough flight attendants so you can get more than one drink on a cross-continental flight.

It would be worth the money spent.

[TexasBushwhacker]

16. The difference in cost

Between "budget" and "first class" is ridiculous.

[customerserviceguy]

18. Only if you pay with money

Sure, a first class ticket costs four to five times as much as a cattle class ticket, but when you pay with frequent flier miles, it only costs twice as much. Yes, you have to be able to book in advance most of the time, but that's not a big problem for me.

Clearly, paying first class passengers subsidize the cheap seats in the back, to some extent. What if an airline formed where all of the seats had adequate shoulder room, maybe not as cushy as true first class, but comfortable. And, you wouldn't need fancy-ass meals served with real china and metal tableware, just a good basic sandwich or something that wasn't filled with mystery meat.

My guess is that such an airline could probably charge about twice what a coach-class seat costs, and still be as profitable as a traditional aircraft configuration. Business travelers would flock to it, and people who don't like screaming seat-kickers (like me) would be glad to pay the extra cost.

Flying coach class across the country is one of the most uncomfortable situations that people pay to be in.

[TexasBushwhacker]

23. I think you are right

I think an airline that had all business class seats, at a cost of roughly double coach price would be a winner. The key is that they would have to pay with money, not FF miles.I'm not sure serving food is even necessary. People can always buy a sandwich at the airport. Not everyone wants to eat while flying. Non-alcoholic beverages should be free.

[customerserviceguy]

25. I would imagine

that any such airline would indeed use a frequent flier award scheme, but they would require a higher number of miles to get the seat. That could be fixed with an award chart that charges more miles per flight, except when they need to fill seats.

But, you're right about the food. However, if we could return to what economy class used to be say, fifty or sixty years ago, that would be amazing. My first flight (that I can remember!) was in 1969, there was ample seating in the aircraft, and they brought me a full meal. I'd be curious what Mom paid for that flight (I was just 13) and translate that into 2019 dollars.

[dawg day]

26. The first time I flew to Florida to see my grandmother-- in 1972--

It was $300 from Columbus. (I remember because I couldn't pay it and Grandma had to send a check.)

That would be about $1700 today.

I can get that flight now for $250. Sure, it's not a half-empty flight (it's completely full), and there's no food, but that would be about $60 in 1972 $.

I'm cheap, and would definitely sacrifice comfort and food and glamour and all that to save so much money. It means I can fly out to see friends or go to out of town weddings and funerals without spending most of a month's salary. (I'm cheap because I'm poorly paid.

To each his own. I do prefer airlines that don't suddenly go bankrupt, however.

[customerserviceguy]

27. For me, flying is a (sometimes) necessary evil

Last year, when I went to WA state to visit family and friends, I drove around the whole country. Being retired helps. But I got to go to so many great museums, and drink a craft beer with some of the best folks in the nation.

I can see there being niches for both my ideal airline and the ones that we have today.

[dawg day]

32. That's my preferred too--

This great huge nation (and another above and another below), all connected by roads. (Well, not Hawaii

You can drive in a straight line almost from Miami to LA, from NYC to SF.... and there is a lot of magnificence to see (and, as you say, museums! Wall Drug!).

I like to go to college campuses, and things like the Eisenhower house (6 boys raised in that tiny house!) in Abilene, KS.

But when I have to get somewhere fast, I do fly. I just think it's one of the wonderful American experiences, those long drives from state to state.

[Jake Stern]

29. "No support animals"

So in your perfect airline, my blind partner and her guide dog would be grounded so you can be comfortable?

[customerserviceguy]

30. OK, maybe real ones

Your partner and her guide dog are the real deal. But too many people have carried this thing to wild extremes.

How about no "emotional support" animals? No exotic species, either?

You've got to admit, misuse of the laws requiring tolerance of generalized "support" animals have made a mockery of the use of genuine guide dogs by sightless people.

And, even if my ideal airline did say "no support animals, period," your partner would still have other alternatives. I would envision that the type of airline I advocate would only fly between the biggest cities, that are already served by multiple airlines.

[Jake Stern]

31. Yes, bogus service animals are an issue

But sometimes the over-the-top reactions are just as bullshit. I've really stopped being mad at the imposters after dealing with the insanely dickish responses to them. Harassing an obviously blind woman when she couldn't produce her dog's ID card is fucked up no matter what happened to Mr. Business Owner in the past.

[customerserviceguy]

33. I have sympathy

for people with allergies. I don't have them, but many people in my life cannot have a dog in the seat next to them. I would like to see the visually impaired traveler and the allergic traveler both accommodated.

[DemoTex]

4. High-density seating of 189 in a B-737 gives rise to a new class of air travel: Kipper Class

Pack 'em in like little kippers. Hell, it's us or the bus. Time to spare, go by air. Same day service to most places.

Levy's "high-quality, highly reliable" doesn't jibe with "extremely low fare." Perhaps he should throw in the terms "low-wage" and "non-union" while he is having his pipe dream.

As the flight attendant said, "Buh-bye."

[flotsam]

12. Fuel and Airplanes are cost constants

Humans are not. So yeah.

[pangaia]

5. "We think the opportunity exists for a real high-quality.... "a better product ... high-density....

Uh.. oxymoron......

[CanonRay]

6. How about an airline based on good customer service?

Uh, no. Unthinkable.

[jmowreader]

8. I've always had good customer service from the airline with the guy painted on the tail

[CanonRay]

10. Yes, they are better than most

an Southwest as well. The rest of them....

[customerserviceguy]

19. Alaska is good

but I've done fine with American since saying "buh-bye" to United.

[jmowreader]

20. You might know this

Is there a way to find out which airlines use a particular kind of plane for a route without having to go on Travelocity and click around? I would like to fly on a 787 and it'd be nice to be able to search for that.

[Sgent]

21. I think

the 787 is used by just about everyone except Delta.

However, you won't see it on domestic trips -- the longer the better.

[customerserviceguy]

22. I can't say that I do know

but my lady uses SeatGuru to find the best places to book a seat.

I doubt that it is possible to search by aircraft type to find a flight.

[dawg day]

28. Seatguru.com has all sorts of search options

SeatGuru: Airline Seat Maps, Flights shopping and Flight information ...

[jmowreader]

7. I thought we already had that airline

They paint their planes yellow and charge you to use the lavatory.

[Opel_Justwax]

11. In a few months all these budget airlines are going to go belly up. You can't run an airline cheaply

and stay in business very long.

[obamanut2012]

13. JetBlue (1998) - Southwest (1967) - Spirit (1983) - Allegiant (1997)

Frontier (1994).

And, these are just some in the US. Canada, Europe, etc. have plenty budget carriers that have been around for quite a while, so wtf are you even talking about?

[rictofen]

14. "real high-quality, highly reliable, extremely low fare"

[Gumboot]

15. TED2, anybody?

Wondering if it'll last a few minutes longer this time around...

[TexasBushwhacker]

17. Call it "Skinny Bitches"

Cuz you have to be skinny to fit in the seats and you'll be bitching about the extra charges.

[titaniumsalute]

24. Allegiant is one of the worst airlines in the US

My friend is a commercial pilot and won't ever EVER step foot on an Allegiant plane due to safety issues. He said his airline (a big one) discourages their employees flying on Allegiant.