The year 2021 presented unprecedented challenges to the global travel industry, but amidst the turbulence, a particular sector has not only weathered the storm but has arguably thrived: budget airlines. This resurgence, characterized by the emergence of new low-cost carriers and the expansion of existing ones, signals a potentially transformative shift in the landscape of air travel and offers a glimpse of optimism for the future. Travelers are poised to benefit from lower fares, new routes connecting previously underserved markets, and heightened competition, all contributing to a more accessible and dynamic travel experience. This article will explore the rise of these airlines and how America’s Boom in New Budget Airlines Reveals a Positive Outlook in Air Travel.
A New Flight Pattern: Targeting Underserved Markets
The current wave of budget airlines distinguishes itself by strategically targeting smaller markets, often those frequented by leisure travelers seeking unique experiences. This approach contrasts sharply with the traditional strategy of competing head-to-head with established legacy carriers on major, heavily trafficked routes. Instead, these airlines are pioneering routes that connect smaller cities and regional hubs, reminiscent of Southwest Airlines’ approach in the 1990s.
Willis Orlando, a flight deal expert at Scott’s Cheap Flights, observes this trend, noting that these airlines are focusing on "connecting these uncommon routes… instead of trying to compete one-to-one with legacy carriers." This strategy allows them to tap into a latent demand for travel between destinations that were previously inconvenient or prohibitively expensive to reach.
Instead of concentrating their operations at major international airports like John F. Kennedy International Airport in New York, Chicago O’Hare International Airport, and Los Angeles International Airport, these new carriers are strategically focusing on airports in cities such as New Haven, Connecticut; Akron, Ohio; Tampa, Florida; and Burbank, California. These locations offer several advantages, including lower operating costs, less congestion, and the potential to attract travelers who prefer smaller, more manageable airports.
The New Entrants: Breeze, Avelo, and Aha!
Several new players have entered the budget airline arena, each with its unique approach and target market. Breeze Airways, founded by JetBlue’s David Neeleman, commenced operations in May, serving a network of cities including Akron, Louisville, Tulsa, and Tampa. The airline aims to provide a seamless and affordable travel experience, focusing on direct flights between underserved markets.
Avelo Airlines, led by Andrew Levy, former chief operating officer of Allegiant Air, launched in April with a strategy of focusing on underserved leisure destinations, including national parks and cultural hubs. Avelo currently stands out as the only airline offering flights from New Haven, Connecticut, and Fort Collins, Colorado, demonstrating its commitment to connecting communities that have been largely overlooked by major carriers.
Jim Olson, Avelo’s head of communications, emphasizes the airline’s deliberate approach in selecting routes and airport pairings that lack existing service. "The enthusiastic response we have received from these communities and the others Avelo serves is very encouraging," Olson stated, highlighting the strong demand for affordable and convenient air travel in these underserved markets. Avelo plans to serve 18 U.S. destinations by the end of December, indicating its rapid expansion and commitment to serving a growing customer base.
Aha!, a regional airline operated by ExpressJet, took flight in late October. Aha! (an acronym for "air-hotel-adventure") plans to connect Reno, Nevada, and the greater Lake Tahoe region with various cities across California, Oregon, and Washington. The airline’s name reflects its broader ambition to offer comprehensive vacation packages, combining air travel with hotel accommodations and adventure activities.
Looking ahead, Airbahn, a California-based airline founded by Tariq M. Chaudhary, plans to launch in early 2022. Chaudhary envisions Airbahn becoming California’s hometown airline, drawing inspiration from Southwest’s success in Texas. The airline intends to establish a hub in Ontario, Long Beach, or Orange County, providing convenient alternatives to the congested LAX airport. Airbahn has already acquired its first aircraft, signaling its readiness to enter the market.
The Rise of "Tweener" Airlines
The evolving budget airline landscape also includes the emergence of "tweener" airlines, which bridge the gap between traditional budget carriers and legacy airlines. These airlines operate with a cost-conscious approach but offer additional amenities, such as seat reservations, luggage allowances, and even meals, often included in the ticket price. This hybrid model caters to travelers who seek affordability without sacrificing certain comforts and conveniences.
The pandemic has, in some ways, presented an advantage to these emerging airlines. Major carriers, facing significant financial pressures, have been forced to lay off flight crews and reduce their route networks. This has created an opportunity for new airlines to recruit experienced personnel and strategically select routes in a market increasingly driven by leisure travel.
International Expansion: Norse Atlantic, Play, and More
The resurgence of budget airlines is not limited to domestic travel; international competition is also on the rise. Norse Atlantic Airways plans to offer budget flights between Oslo, London, Paris, and major U.S. cities like New York, Los Angeles, and destinations in Florida. This ambitious venture aims to disrupt the transatlantic travel market by offering significantly lower fares than traditional airlines.
Play, a new Icelandic airline, launched in June, stepping in to fill the void left by the closure of WOW Air in 2019. Play operates flights between London Stansted and Reykjavik’s Keflavik International Airport, as well as connecting Iceland with other European cities such as Barcelona, Paris, Amsterdam, Berlin, Copenhagen, and Warsaw.
JetBlue, while not a new airline, has significantly expanded its low-cost transatlantic offerings, connecting London with New York. Finnair plans to increase flights from New York and Los Angeles next spring and introduce a new direct flight from Seattle-Tacoma International Airport to Helsinki-Vantaa Airport in Finland in June.
French Bee, a Paris Orly-based long-haul carrier, has also expanded its route map, now offering flights between San Francisco, Newark, and Paris, as well as between San Francisco and Tahiti and Reunion Island. The airline plans to launch direct flights between Los Angeles and Paris in April. Despite the risks associated with expanding during a pandemic, French Bee launched direct flights between Newark and Paris in July, shortly after France reopened its borders to U.S. tourists.
French Bee President and CEO Marc Rocher acknowledged the risk involved in expanding during a period of uncertainty but expressed surprise and satisfaction with the positive response from the U.S. market. America’s Boom in New Budget Airlines Reveals a Positive Outlook in Air Travel is demonstrated by how French Bee, Spirit, Frontier, and Allegiant added routes and increased passenger capacities.
Downward Pressure on Airfares
As most airlines sharply curtailed their services during the pandemic, budget airlines defied the trend, adding routes and increasing passenger capacities. Frontier, Spirit, and Allegiant were the only three carriers that increased their passenger capacity during this period, underscoring their aggressive expansion strategies.
This increased competition has put downward pressure on airfares, benefiting consumers. Since Avelo entered the market, legacy carriers have been compelled to offer more competitive deals on short-haul routes, a trend that is expected to continue. Orlando notes that these airlines have "no choice but to keep those fares low" in order to remain competitive.
Conclusion: A Positive Trajectory for Air Travel
The surge in new budget airlines and the expansion of existing ones signal a positive outlook for the future of air travel. These airlines are not only offering lower fares and connecting underserved markets but are also driving increased competition, ultimately benefiting consumers. The rise of "tweener" airlines provides travelers with more choices, while international expansion is making long-distance travel more accessible. America’s Boom in New Budget Airlines Reveals a Positive Outlook in Air Travel is a result of shifting consumer demand and airline strategy.
As the travel industry continues to recover from the pandemic, the role of budget airlines is likely to become even more prominent, shaping the future of air travel and making it more affordable and accessible for a wider range of travelers.
