New airline in PIT

Today it was announced that there will (hopefully) be a new airline starting up in Pittsburgh. So new there is not even a name for the airline yet. I believe it is called "Project Roam". Anyway the airline hopes to be flying to 9 cities sometime next year, and then to 39 cities within 5 years. Their fares will start out at $49 one way for shorter trips and $99 dollars for the longest trips. They will only be flying new 737 - 700's in their fleet in order to keep maintenance costs down. Of course everyone fully expects US air and all the others in PIT to lower fares to compete and snuff the competition out. Have to see what happens. If Us air leaves, looks like we could see the makings of a brand new airline that would most likely be successful because of no hub in PIT. Here is a link Click here . I think it is kinda cool to see a new potential airline in the making. Hopefully everything works out. What do all of you think about this.
 
I dunno, last time I heard about an airline that was already advertising fares and aircraft types before actually having hired a pilot was the "apply with us!" scam down in Tampa (Crystal Air?) and the college kid with the website taking cash and making reservations for a nonexistant airline.
 
I actually never heard about that scam. This one sounds good though. The founder of the project is also the founder of America West Airlines. He went in depth tonight on the news about why the airline would be good for PIT and what it could mean in the future. The link doesn't work for some reason so here is the web address to the story (www.post-gazette.com/breaking/20031014airp4.asp) Hopefully it goes well.
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Nevermind all that.. I wanna know how he intends to charge $49 to $99 a ticket and expect to turn a profit on 2 class configuration 737-700s!

Hell, National (version 2.0) tried this out of a place people actually WANT to go to (LAS) with external support funding (one of the hotel conglomerates out there, it escapes me at the moment) and they STILL died. And this was with USED airplanes!

I'd really like to know why someone can float a business plan for an airline that intends to operate in an oversaturated (to grossly understate the term) market using a fare structure they can't hope to make money with, REGARDLESS of the number of seats they fill. I mean, let's see here... Just off the top of my head, they will be in direct competition with JBU, SWA, BLR, UAL, DAL, USA, and possibly the Virgin spinoff heading into that market.

Can someone give me the number of their Whack Weed dealer? I gotta get me some of that stuff!

Paul
 
At $99 a pop for 126 passengers a one way gross revenue would work out to roughly $12,600. I dunno but for overhead, labor, fuel etc. that seems a bit on the shy side to be funding brand new -700s.

I don't doubt that they'll make a try at it but I don't see the $49 and $99 fares ever being offered out side of a few promotinal seats per flight.
 
Probably some geek from airliners.net that managed to formulate a business plan from reading the forums!
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