Usually it is good news when competition increases in the marketplace. The airline industry is one marketplace where that doesn't seem to apply however. Increased competition has meant bankruptcy for some airlines, necessity to merge for others and lay-offs and downsizing for almost all the rest. As airlines struggle to make profits, they have resorted to a strategy of abandoning certain areas or regions - usually the small market regions. This allows them to concentrate their equipment and remaining staff in the higher revenue markets. This was one of the pitfalls to deregulation of the airline business in the 80's - the abandoning of certain markets - because before deregulation, the airlines were being propped up by subsidies to serve smaller markets.
So sure enough, some small regional airports (Spokane for instance) or small large market airports (Cleveland) saw service slashed in many cases. The newest start up airlines (like Spirit or Virgin) tended to either serve the larger markets (New York, L.A., S.F., Florida) and did not completely take up the slack left by the legacy carriers in the smaller market areas (Charlotte, Montgomery, etc), though Spirit did set up Detroit as a hub and offers great fares to and from there.
So it is hoped that into the void steps start up airlines with hopefully lower cost structures to serve the abandoned markets. And that is exactly what is happening with Jet America. A start-up airline (July 2009) that serves airports like Charlotte, Toledo OH, Lansing MI and South Bend IN, which will offer $9 fares to the first 9 people who purchase tickets. (The average ticket otherwise is around $200).
Normally this would be good news but analysts are not so gleeful over Jet America and their plans, at least so far. Aviation consultant and author/blogger Peter Greenberg wrote on his blog that the founders behind Jet America had already tried to establish a discount airline previously and had failed. He also noted that skeptics reported disorganization already within Jet America as well and the overall outlook is not so rosy for this airline to survive. Which brings me to my point for writing.
IF you decide to purchase a ticket on Jet America, be prepared for ANYTHING to happen. If Jet America does go under, other airlines MAY not honor their sold tickets and you will be out the amount you pay. Travel insurance might be a good hedge but remember that insurers have a 'possible bankruptcy' list of airlines that are NOT covered by travel insurance and I am making an educated guess that Jet America will be one of them right from the start. So if you plan on using Jet America, be prepared for turbulence BEFORE you ever take off and have a Plan B handy just in case.
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