Boston reaps the rewards of airline competition

by Grant Martin on

It’s funny. Airlines blame last year’s industry implosions on consumers’ non-stop demands for low fares. Ask any analyst and they’ll say “Transcontinental fares are as low this year as they are were in 1986! Where’s the inflation! The Humanity! The Humanity!”

We can’t be completely to blame though. Three out of four times, a consumer like myself needs to buy a ticket, logs on to Kayak, finds the cheapest fare and buys a ticket. If the bar is twenty dollars higher all around? The cheapest fare still gets purchased and I buy one less fitted oxford at Hollister.

Instead, I think much of the blame lies in aggressive competition. With their fun oil hedge, Southwest often sets the market price by opening service to a city, offering outrageous deals and forcing the competition to match or undercut those fares. Often times, the competition launches their own promotions to keep loyal passengers flying on their product.

Boston is the picture perfect example. Last month, Virgin America started service to Beantown, saturating the transcontinental market and directly competing with American Airlines. Soon thereafter, Southwest announced that they would be setting up camp in the Autumn. To compete with Virgin America? Perhaps.

In kind, American Airlines has now launched its own campaign, offering transcontinental passengers triple the miles on any flight. This means that after only two round trips, passengers can earn free domestic award travel on the airline. That’s a pretty outstanding deal and direct competition to both carriers.

Will this sway the fickle traveler back to American Airlines when Virgin America offers mood lighting and hipsterdome while Southwest provides zaniness and a robust route network? Maybe for the business traveler, but my guess is that the casual traveler will still go with the younger, cooler airlines.

Virgin America’s next destination: Orange County

by Grant Martin on

Now that the dust has settled from Virgin America’s Boston route launch, it’s time to move onto the next destination: Orange County. John Wayne Airport, nestled in the Southern Los Angeles suburbs plans to receive service some time this spring.

But why Orange County? The airline already offers service to LA, a mere few miles to the north and plenty of Midwestern and Southern cities would love to entertain the airline. Well, it’s got a lot to do with strategy. Abby Lunardini, spokeswoman from Virgin America puts it as such:

“As the only airline headquartered in Cali, this is an enormously important travel market for us – and the demand is certainly there even in the current economy. The Bay Area and Orange County are two of the nation’s leading innovation-based economies and are more insulated in the current economic climate. We also know that Orange County travelers are a perfect fit for our high-tech amenities and upscale service — like in-flight WiFi and touch-screen personal entertainment.”

The route is also a natural extension of our LAX-SFO routes. We’ve got really great schedules (especially for business travelers) flying into SNA.”

There you have it. We cavemen in the Midwest just don’t fit into the Virgin America model. Kidding aside, Virgin America plans to kick off the first flight in late April. As usual, we’ll be there to give you the lowdown.

Inside the Virgin America Boston Launch

by Grant Martin on

Virgin America kicked off their service to Boston with a bang last week, in an evening filled with excitement, celebrities and as usual, more than a few delicious beverages.

Gadling bloggers were on hand to capture the event that started at Logan Airport around 3PM. Naturally, Sir Richard Branson made the last minute decision to come down from the jetbridge in drag, after which a brief ceremony introduced us to the gate area, some foxy New England Patriots cheerleaders and a mishmash of Virgin crew and media.

Afterwards, the entire crew migrated over to the Liberty Hotel in Downtown Boston, where our old friend Mark from Jaunted was already setting up camp, then the whole lot of us headed down to the atrium for more festivities.

Proper ceremonies from the Revolution Takes Flight campaign started at seven, with CEO David Cush and Richard Branson both making speeches over the throbbing crowds below.

Check out our video covering the event after the jump.


Virgin America Boston Launch Highlights from Gadling on Vimeo.

All of our thanks to the staff and crew of Virgin America who worked their asses off during the event.

Until Orange County,

Gadling

Can other airlines learn from Virgin America?

by Brenda Yun on

In my mind, there is nothing worse than flying. I think it’s a waste of time (I’ve probably wasted, cumulatively, half a year of my life in the air). Ever since I had to take off my shoes and undo my belt, I’ve hated checking through security. And there’s something really gross about sharing oxygen with over a hundred other travelers on a plane. I feel like I’m bound to catch the flu.

The one saving grace in flying is the entertainment on the plane, and even that has been lackluster these days (aside from “Slumdog Millionaire,” “Milk,” and “The Curious Case of Benjamin Button” there really is nothing out in theaters worth shouting about).

That is until Virgin America came along. This upscale carrier somehow found a way to make flying really comfortable and fun — starting with its safety video, which is just awesome.

With regard to the video, I love the wry narrative voice and the innovative shots and character sketches (a matador and bull buckling up? Brilliant!). The video was produced by Anomaly and animated by Wildbrain, who also creates imaginative commercials for Nike, Coca Cola, and Honda.

I think it would be a great idea if every airline carrier revamped the image of the airline safety video. Traveling would be that much more enjoyable, wouldn’t it? And while they’re at it, they could maybe learn a thing or two more from Virgin, such as installing comfy black leather seats perhaps, or offering personalized entertainment like “Red.” Every passenger gets to tap on a touch screen and select from dozens of music and real-time television (like CNN and USA) options. Even its latest unbeatable fares between California and Boston are a godsend from bi-coastal travelers like myself.

Once United, America, and Delta Airlines in particular take some notes and finally understand we’re no longer living in the 20th century, maybe — just maybe — people in the air will be far more happy flying the “friendly skies.”

Budget Travel – The Low Cost Carrier

by Scott Carmichael on

Summary: The low cost carrier (LCC) may seem like a new development in the aviation world, but the concept is anything but new. The first real low cost “no frills” airline was Laker Airways, which took off back in 1966 from the UK, and shuttled passengers to destinations all around the world for as little as $50.

Laker Airways provided the inspiration for many of the current low cost carriers, and even major airlines like Virgin Atlantic took a close look at Sir Freddie Laker’s business model to learn from his experiences and mistakes.

A low cost carrier is exactly what the name implies – low cost. In order to offer these low prices, the airline naturally makes some cuts. You won’t find anything “free” on the majority of these carriers. Everything from drinks to checked luggage will add to the price of your ticket, but in return you are able to book an insanely cheap fare.

Finding a low cost carrier: Several days ago, Jeffrey wrote about some basic ways you can find a low cost carrier. This information is very important, because almost all low cost carriers handle their own bookings, and do not participate in sites like Expedia or Travelocity. There are 100’s of low cost airlines out there, so if you can’t find what you are looking for, try entering your destination into Google, and a airline or other resource is bound to pop up.


When not to use a low cost carrier: As you navigate the low cost airline websites, you may notice a trend – many of them do not use the airport you expect them to.

For example; Ryanair flies from London to Brussels. Their destination is not to the “normal” airport of Zaventem, but “Brussels South Airport” in Charleroi. Zaventem airport is just 10 miles from the Brussels city center, Brussels South airport is about 50 miles with no direct rail link.

You’ll need to take this into consideration when you book a ticket, as the trip from Charleroi to Brussels takes about an hour by bus and will add about $30 (round trip) to your ticket.

The same goes for many other airport destinations serviced by a low cost carrier. Before you hit “purchase now”, always pull the airport up on a map, and check out the airport site to determine just how much of a hassle it will be to get to your final destination. Saving $50 on a ticket is meaningless if you have to spend another $50 just to get to your hotel.

The low carrier will not always warn you about these remote destinations, so make sure you do your homework. One more thing to keep in mind is that many of these airports are low cost themselves, so do not expect too many facilities.



Too good to be true? When you research a low cost carrier, and compare their prices with a normal carrier, you’d be forgiven if you wondered whether the whole thing is too good to be true.

If you come across a $3 fare on Ryanair, don’t be too suspicious, these carriers sell millions of tickets, and many of them do indeed start that low. In fact, some of these airlines are amongst the largest in the world, all thanks to those cheap tickets.

Of course, you do need to keep in mind that even tickets on a low cost carrier are subject to taxes and other surcharges, so your $5 ticket could easily become $60.

Competition = good: Don’t always depend on the low cost carrier. On routes within Europe where competition is stiff, you’ll often be able to find similar rates on the legacy carriers. For example; easyJet charges about $42 for a one way ticket from London Luton to Amsterdam. But British Airways charges just $68 for a flight from the much nicer Heathrow airport to Amsterdam. If you are on a budget, but still have a little cash to spare, consider your comfort before committing to a low cost carrier.

Booking on a low cost carrier: As i mentioned earlier, don’t expect to use your favorite booking site to book a ticket on a low cost carrier. All these carriers handle their own bookings. This means you’ll have to select the cheapest airline yourself.

A great place to start is FlyLowCostAirlines.org, this site has most major low cost carriers in their database, and allows you to enter your destination to locate all the low cost carriers that operate on that route.

Low cost carriers are everywhere! When you think of low cost carriers, most people will think of the airlines they recognize – Spirit, JetBlue and Southwest are all very well known in the US.

There are however 100’s of other low cost carriers around the world. Heading to India? Check out GoAir. Going to China? Take a flight on Spring Airlines. A convenient list of all the low cost carriers in the world can be found at Wikipedia.

Get your expectations straight: There is no easy way to say this – low cost carriers are not a luxurious way to travel. If you are used to flying in the first or business class cabin, and having a flight attendant look after all your needs, then a low cost carrier is going to be mighty disappointing.

Book your ticket with the correct expectations, and your flight will be just fine. Remember, most of these flights are under 2 hours, and the money you saved will go towards a nice dinner at your destination. If you board the plane expecting full service, then you are going to be in for a nasty surprise.

What to be on the lookout for: Every low cost carrier will do what it can to “upsell”. During your booking process, you’ll be offered all kinds of additional services, for a fee.

Some of these services may be cheaper than buying them directly, but others may not be the best value out there. If you have money to spare, you may want to consider paying for “priority boarding”, which allows you to board in the first group, greatly increasing your chance of getting a decent seat. This is especially important if you are traveling in a group and do not want to be split up.

Remember, almost no low cost carriers do the seat assignment game, so as soon as the boarding doors open, you are on your own to snag the seat you want.

One other thing to keep in mind, is that not all airlines let you check in for free at the airport. Ryanair is a good example of an airline that charges for checking in at the airport, so don’t be surprised if your family is charged an additional fee, just because you were not able to do an online checkin.