Categories: Low-cost carriers

Are Southwest and Virgin America Getting a Bit Ahead of Themselves?

Posted by: Justin Bachman on August 11

Like many an entrepreneurial venture, building an airline is all about the story. Consider the likes of Herb Kelleher, Richard Branson, Freddie Laker, Michael O’Leary, Tony Fernandes: This audacious group…

Southwest: Revenues vs. the Brand

Posted by: Justin Bachman on May 29

In the grand scheme, Southwest’s revenue decisions May 29 on pets and unaccompanied minors isn’t a major deal. Quick recap: You can now bring “Fluffy and Fido” along under your…

Southwest’s Red Ink and Baggage Fees

Posted by: Justin Bachman on April 16

Would Southwest Airlines have turned a profit the past quarter if it had charged checked-baggage fees? That was the interesting question posed during the company’s conference call to discuss its…

Southwest Loses Big, Shedding Workers

Posted by: Justin Bachman on April 16

Southwest Airlines (LUV) posted an unusually large loss on April 16 and, in a sign that every corner of the airline industry has been marred by the weak economy, announced…

Southwest’s New York Debut

Posted by: Justin Bachman on April 07

Southwest (LUV) filed its fares from New York’s LaGuardia airport today, with the new service expected to begin June 28. The airline will fly five nonstops per day to Chicago…

Virgin Goes For a Bag Fee

Posted by: Justin Bachman on March 19

Virgin America is joining the list of carriers with a fee to check a bag. Previously, there was no charge for one, but as of May 5, it will cost…

Ryanair’s Toilet Fee: PR Success

Posted by: Justin Bachman on March 01

In the airline business, a field populated with no shortage of larger-than-life characters – ie, Richard Branson, Herb Kelleher, Gordon Bethune – there is a grand tradition of taking some…

Southwest: NYC, Boston… Say What?

Posted by: Justin Bachman on February 19

At first blush, it’s easy to think Southwest CEO Gary Kelly has truly gone off the reservation in terms of the airline’s business model. (That’s him at the far right,…

Virgin America: Will Private Equity be Patient?

Posted by: Justin Bachman on February 02

Virgin America disclosed some details on Monday of its financial performance, a day before the Dept. of Transportation was scheduled to release operating data the upstart carrier had fought to…

Frontier: On the Quest for Cash

Posted by: Justin Bachman on January 12

How’s this for a tricky business problem: Your airline is based in Denver, sandwiched between the deep-pockets of an expansion-minded Southwest (LUV) and the market share of United (UAUA), which…

Southwest Sees Fuel Hedges’ Pesky Side

Posted by: Justin Bachman on October 16

The dark side of fuel hedges cropped up for Southwest Airlines (LUV) this summer, leading to the company’s first quarterly loss since early 1991. Southwest took a $247 million charge…

A Ryanair for the Long-Haul?

Posted by: Justin Bachman on October 08

In an industry well-known for wild ideas, here’s one of the zanier ones I’ve heard in weeks: A new trans-Atlantic, budget airline. Or so says Ryanair (RYAAY) CEO Michael O’Leary…

Low-cost carriers are taking the pain

Posted by: Dean Foust on September 24

I penned a story for the latest print edition of BusinessWeek on how the discount carriers like AirTran, Frontier and, to a degree, Southwest that were gaining market share while…