INTERNATIONAL. Low-cost airlines are continuing their rapid expansion with moves into international markets, the latest area in which the new breed of carriers is turning up the heat against ‘traditional’ airlines.
JetBlue Airways, the low-cost airline that flies jetliners with leather seats and individual satellite TV monitors for its passengers, is to launch a service to its first international destination, the Dominican Republic. JetBlue said this week it intends to begin a non-stop service from New York to Santiago and Santo Domingo – both in the Dominican Republic – where it will compete with American Airlines and Continental Airlines.
Also in the US, AirTran Airways already flies to Freeport in the Bahamas. Spirit Airlines, which currently flies to Mexico, recently won US government approval to fly to 11 countries: Aruba, the Bahamas, Canada, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Jamaica, Nicaragua and Panama. Frontier Airlines competes with United Airlines on five routes to Mexico from the US.
“United has been trying to match our fares so far, but increased competition would force fares lower,” Frontier spokesman Joe Hodas told Reuters.
America West this week announced a new non-stop service from Los Angeles to four new international destinations in Canada and Mexico.
Low-cost competition is also spreading to the wider international market. In Asia Singapore Airlines has confirmed it is talking to low-cost international start-up Backpackers Xpress about leasing B747 jets to fly between the UK and Australia but it said it is not interested in investing in the airline. Thai AirAsia, the company jointly owned by Shin Corp and Malaysian budget airline AirAsia, has sought approval to fly to Singapore from next month, the airline’s first major international route. The budget airline has told the Civil Aviation Authority of Singapore (CAAS) that it will operate flights between Bangkok and Singapore from April 2004.
Zoom Airlines based in Ottawa, Canada will offer scheduled transatlantic flights to both Glasgow and London Gatwick airports in the UK from six Canadian cities beginning May 2004 with fares lower than the current charter options available. Other low-cost carriers such as easyJet are also said to be considering starting transatlantic flights, putting more pressure on major carriers to cut costs – good news for travellers and overall volumes of travel around the world.
