TED starts flying next week out of DEN; looks like IAD in late Spring.
United Airlines Unit To Start Offering Flights Out of Dulles
Firm Competes With Low-Cost Carriers
By Keith L. Alexander
Washington Post Staff Writer
Thursday, February 5, 2004; Page E02
United Airlines' low-cost subsidiary Ted intends to begin flying between Washington's Dulles International Airport and Florida in late spring, sources familiar with the carrier's plans said yesterday.
United, a unit of UAL Corp., is scheduled to release details of the service at a news conference today. Ted is expected to fly primarily to vacation destinations such as Orlando and Tampa.
United officials declined to comment.
United unveiled Ted -- short for United -- in November as a quirky, fun airline to compete with low-cost competitors such as Southwest Airlines and JetBlue Airways. The new carrier is launching service next week with flights to several cities, including Reno, Nev.; Phoenix; and New Orleans from its base at Denver International Airport.
The arrival of Ted in the Washington area will further establish Dulles as an airport with one of the largest concentrations of low-fare airlines in the country. JetBlue and AirTran Airways have boosted the number of their flights at Dulles in recent months. In September, Delta Air Lines Inc. began operating its fledgling low-fare carrier Song between Dulles and Orlando.
This summer, Dulles-based Atlantic Coast Airlines will transform itself into Independence Air, a low-cost, low-fare carrier. The airline operates United Express flights, but United and Atlantic Coast expect to end their 15-year relationship as early as this spring because they cannot agree on a new contract.
Atlantic Coast spokesman Rick DeLisi said the airline is undaunted by low-cost competition at Dulles. "This was absolutely anticipated by us, and we built this into our business plan. We're going to be bringing 350 low-fare flights a day into Dulles," he said.
United, the nation's second-largest airline, is hoping to emerge from nearly 14 months of bankruptcy protection by June. Last month, United officials announced plans to begin construction of a $22 million passenger terminal for United Express, its regional jet operations at Dulles. In December, United applied for $1.6 billion in federal loan guarantees.
United's flight attendants said recently that they plan to picket the airline's operations after the carrier announced a plan to increase the cost of health benefits for some retirees.