Not DisappoinTED

[BLUE BAYOU]

March 23, 2004
United Airlines on Tuesday said Ted, its low-fare carrier, is running ahead of internal forecasts and said it will expand to offer flights at Chicago's O'Hare Airport.

Ted began operating last month with flights from Denver and filled about 82 percent of seats in its first month, United said. Chicago is the largest hub for United.

"Ted has been extremely well-received by customers in other markets, running ahead of our initial forecasts in bookings and seats filled," Sean Donohue, vice president of Ted, said in a statement.

Tickets for Ted flights out of Chicago will go on sale on Saturday, and flights will start May 24.

From Chicago, Ted will fly eight daily roundtrips to Las Vegas, five daily roundtrips to Tampa, seven to Orlando, four to Ft. Lauderdale, and six to Phoenix.

(Reuters)

Next to a few flights that Spirit operates out of ORD, this is the first significant emergence of a LCC at ORD--

 

[General Lee]

Delta Express used to fly to ORD pre-911. It seems like they have said that TED has done well so far---so maybe it will do well at ORD. Spirit, ATA, and Southwest should be interested in this move....

Bye Bye---General Lee

 

[mach zero]

As others have said before...where are they saving on operating costs? I wonder what Ted's CASM is more specifically? To me the whole thing looks like a paint job and a press release. They are going up against ATA and SWA who are operating out of MDW with around a $.07 CASM.

 

[Palerider957]

This sounds a lot like the "Song" rhetoric......now it seems the numbers aren't so rosy after all. I can't believe "Ted" is doing much better, even if the planes are full.

 

[Ty Webb]

I am sure the press releases were pretty upbeat when MetroJet came out . . . . and Continental Lite . . . remember the "peanut fares"?

 

[dlredline]

I am sure the press releases were pretty upbeat when MetroJet came out . . . . and Continental Lite . . . remember the "peanut fares"?

Excellent point . . .

 

[G4G5]

"United Airlines on Tuesday said Ted, its low-fare carrier, is running ahead of internal forecasts"

Then internal forcasts must have been very poor.

I read it recently (maybe Boyd), it's called the, "Reverse Kirk Concept".

"Boldly going where everyone has gone before" and failed.

How can you sell a reduced cost product when you have not reduced your costs (when comapired to UAL mainline)?

With Greinstein taking the helm of DAL you have to believe that he would never have started Song. In fact isn't he on record as be opposed to the airline with in an airline concept?

That leaves Tilton as the only CEO pushing this thing. It's going to be a very tough sell to the ATSB and Bank folks. Especially if DAL announces that they are pulling the plug on Song, when Tilton is up on the Hill, looking for his handout, telling everyone how great it is.

 

[Trojan]

"I read it recently (maybe Boyd), "


Geez, are people still reading and quoting this idiot?!? It's "professional analysts" like him that make all of us rumor-slinging, wild-guessing, armchair-CEOing, forum posters look like geniuses ;-)

Not to bust the chops of anyone here, but we need to get rid of guys like Boyd all together, instead of just using his garbage when it's against whatever airline pilot group we don't like this week.

I hope TED makes it, DAL keeps their big $$ salaries, SWA and JB make the LCCs a worthy career, and all the RJ pilots finally make 6 figures a year. It sure is easier to bring everybody up than to just drag your enemy's down.

T

 

[UM#1]

Delta Express used to fly to ORD pre-911. It seems like they have said that TED has done well so far---so maybe it will do well at ORD. Spirit, ATA, and Southwest should be interested in this move....

Bye Bye---General Lee

Im sure they will take an interest in this move, but they have the upperhand. ATA,SWA can outprice Ted and afford to do this due to a low casm, while Ted will lose money trying to match or underprice them. Also ORD is delay central compared to MDW. Passengers have noticed this and the people using midway over ORD has increased and continues too. Ted right now isn't much of a threat to the LCC's in the Chicago area, they haven't shown anything, no numbers out yet, and still the butt of many jokes, time will tell with Ted, until then, now if JetBlue said they were moving into the Chicago market that would be interesting!

 

[20/20]

"United Airlines on Tuesday said Ted, its low-fare carrier, is running ahead of internal forecasts"

Then internal forcasts must have been very poor.

I read it recently (maybe Boyd), it's called the, "Reverse Kirk Concept".

"Boldly going where everyone has gone before" and failed.

How can you sell a reduced cost product when you have not reduced your costs (when comapired to UAL mainline)?

With Greinstein taking the helm of DAL you have to believe that he would never have started Song. In fact isn't he on record as be opposed to the airline with in an airline concept?

That leaves Tilton as the only CEO pushing this thing. It's going to be a very tough sell to the ATSB and Bank folks. Especially if DAL announces that they are pulling the plug on Song, when Tilton is up on the Hill, looking for his handout, telling everyone how great it is.

The reduction in cost per seat mile comes for the increased number of seats in the TED A320s, 156 seats in a TED A320 vs. 138 seats in a mainline Bus. A 13% increase in ASMs at the same cost.

If you look at the LCCs not one currently flying has an aircraft with more than ~160 seats, save for Song, and we keep reading that it is not really working as well as desired. National tried it with B757s, perhaps there is a size limit to the LCC markets. If it was really that big you'd see UAL or others using B747s and 500+ seats.

I've seen the bookings on TED, my family and I tried to get on DEN-MCO recently...no chance SA! FULL! And this was before spring break.