LYCOS RETRIEVER
Independence Air: Airtran Airways
built 641 days ago
Still, US Airways’ current success might have received a jolt from something beyond its control –- the collapse of Independence Air. That discounter -– which was based in Washington and competed heavily with US Airways along the East Coast –- went into liquidation in January. In turn, US Airways benefited as fare wars ended and fares rose on routes where Independence flew. "That's been a key element for them," says Helane Becker, an aviation analyst with Benchmark. But US Airways hasn't solved all of its merger-related challenges -- at least not yet. CEO Parker is “trying to put these airlines together.
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AirTran Airways, which helped bring local airfares down nearly 30 percent over five years, left PTI in 2004 shortly after Independence announced it was coming. AirTran began service here in 1998, and Eastwind Airlines and Continental Lite flew from PTI in the mid-and-late-1990s.
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Although Baker figures that AirTran Airways will capture only $3.4 million in revenue, FLYi's disappearance should have a positive impact on that airline's yield because Independence offers fares in markets that account for 29% of AirTran's revenue. His estimate: AirTran yield could improve 16% if Independence goes away.
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