Low-cost airlines, long a thorn in the side of traditional air carriers, are starting to invade each others' turf, a sign the industry's one-time high flyers are facing stiffer head winds.
Discounters such as Southwest Airlines Co. <LUV.N>, JetBlue Airways Corp. <JBLU.O> and AirTran Airways <AAI.N> have long profited by muscling into routes served exclusively by traditional airlines and offering much lower fares.
They mostly shied away from routes where low-cost carriers had already slashed prices.
But with some 250 aircraft on order over the next three years as the discounters grab for market share, finding airports untouched by discount competition will only get tougher, said aviation consultant Mike Boyd.
"They're going to be fighting with each other as to where to put these airplanes," he said. "Going forward, as we're seeing in New England, low-cost carriers will be fighting with each other for market share rather than just developing new traffic."
Reuters
Discounters such as Southwest Airlines Co. <LUV.N>, JetBlue Airways Corp. <JBLU.O> and AirTran Airways <AAI.N> have long profited by muscling into routes served exclusively by traditional airlines and offering much lower fares.
They mostly shied away from routes where low-cost carriers had already slashed prices.
But with some 250 aircraft on order over the next three years as the discounters grab for market share, finding airports untouched by discount competition will only get tougher, said aviation consultant Mike Boyd.
"They're going to be fighting with each other as to where to put these airplanes," he said. "Going forward, as we're seeing in New England, low-cost carriers will be fighting with each other for market share rather than just developing new traffic."
Reuters
