Budget carriers thriving
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Nimble discount airlines are growing and opening new routes even as the recession forces traditional carriers to cut flights and jobs, a USA Today report said
It said low-cost carriers such as JetBlue and Ireland-based Ryanair and Canada-based WestJet, are making inroads where higher-cost carriers are shrinking amid falling travel demand, especially among cost-conscious fliers.
“These airlines’ common denominator is their agility and cost structures that are compatible with today’s economic reality,” the report quoted consultant, Mo Garfinkle, as saying.
Ryanair, Europe’s largest passenger carrier, will take delivery of 40 new Boeing jets this year and is negotiating with Boeing and Airbus to buy at least 200 more.
JetBlue Airways is launching new routes in the US, the report said. WestJet will expand flying 5% this year and take delivery of nine new jets.
Las Vegas-based Allegiant Air, a low-cost carrier that specialises in linking small and midsize US cities with top leisure destinations, will add more domestic points.
“We’re growing because our business caters to price-sensitive leisure travellers,” Allegiant’s Managing Director, Ponder Harrison, was reported saying.
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