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A new low-fare airline on a web-only approach

25 April 2007

The extreme low-fare airline, already well established in Europe, will try for a comeback in the United States on May 22 with a well-financed start-up, Skybus Airlines, beginning service that day and promising at least 10 seats on every flight priced at $10 one-way — before taxes.

If it sounds like People Express and Laker Airways — low-price carriers that made a splash, expanded too fast and then collapsed — there are similarities.

But the organizers of Skybus are counting on the $160 million cushion that they have raised and on a big change in consumer behavior to help the carrier follow the success of Ryanair, the Irish airline. Ryanair brought ultracheap fares to much of Europe, charging fees for many extras and transforming the short-haul market there.

source: NY Times

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