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Low-cost carriers set to proliferate, add services.

Publication: Business Travel News
Publication Date: 11-AUG-03 		Format: Online - approximately 1090 words
Delivery: Immediate Online Access

Article Excerpt
Atlantic Coast Airlines and the Virgin Group each are planning to launch low-cost carriers in the United States, bringing competition not only to struggling legacy carriers but also to the profitable crop of low-cost incumbents, including AirTran, JetBlue and Southwest airlines. Meanwhile, other low-cost carrier developments include ATA Airlines' entry into the nonstop transcontinental market and Frontier Airlines' new automated checkin system.

Details still are sketchy on ACA's new operation, with timing dependent on if and when United Airlines chooses to end its ACA relationship. ACA currently serves as a United Express affiliate at United's Washington Dulles hub. ACA, however, said the low-fare unit will be built around 50-seat regional jets with a range of up to 1,000 miles. An aircraft order for larger Airbus or Boeing aircraft, which would allow for longer routes, could be announced in the next few months.

ACA also said it plans to use Navitaire's Open Skies reservations system. Sales and marketing efforts will be based almost...

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