NYTimes.com Article: Bringing Private Order to a Chaotic Sky

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Bringing Private Order to a Chaotic Sky

March 18, 2003
By JOE SHARKEY






CHICAGO
ACED with an expected last-minute trip, I went onto Orbitz
.com to check fares. They were crazy, as usual.

Some examples: American, Continental and United all had
reasonable walk-up, round-trip fares of about $460, nonstop
from Newark to Chicago's O'Hare. Yet America also had a
fare, same day, Newark to O'Hare, for a curious $1,199 -
with a stop in Raleigh-Durham, N.C.

Already jet lagged from a weekend trip to London, I wasn't
looking forward to the airport experience in either Newark
or O'Hare, let alone the grim warrens of Raleigh-Durham.
Then I remembered the name Indigo, a corporate-jet service
that began operating two weeks ago between Teterboro, a
private airport in New Jersey that handles a lot of
business jets, and Midway, Chicago's secondary airport. So
I called and asked the price.

"We have an introductory half-price offer, $749 round
trip," the Indigo agent replied.

"Sign me up," I said.

The next morning, a half-hour before departure time, I
parked my car (free) outside Indigo's lounge at a small
private terminal at Teterboro. The plane, a sleek new
Embraer ERJ 135, waited just outside the terminal as the
pilot himself checked the identifications and carry-on bags
of the four passengers.

"Everybody's here," the pilot said, glancing over the
manifest.

"Let's go, then," suggested William P. Kostel Jr., Indigo's
vice president for marketing. We took off 10 minutes early
and arrived at Midway in time for me to get on the El, head
into the Loop for a quick early afternoon meeting and head
back to the airport for the trip home.

Over the years, I've been inside most current models of
corporate jets, from the light-cabin Cessna Citation Bravos
to the bowling-alley expanses of the luxury Boeing Business
Jets, which are basically 737's with most of the seats out
and a bedroom in the back. Likewise, an 86-foot-long
Embraer ERJ 135 is usually crammed with 37 seats for use as
a regional jet. But outfitted as a corporate jet, with 16
plush leather seats set one on each side of the aisle, it
offers a whole different travel experience.

But as a business model, will it fly?

Indigo, based in
Chicago, originally began service in 2000 with a fleet of
older Falcon 20 aircraft that proved to be too
high-maintenance to suit the business model, said Peter A.
Pappas, the chief executive. The airline ceased operations
while raising cash to buy the new Embraer jets, with 2 of
them now in service and 23 more on firm order.

Right now, service is limited to the Teterboro-Midway route
(the round-trip fare for that will be $1,498 after the
half-price offer ends on March 31). In April, the company
expects to take delivery of a third jet and start daily
flights between Westchester and Midway. As new planes come
in, point-to-point routes will be expanded nationally.

Indigo is officially designated as a corporate charter
service that also sells individual seats to anyone who
wants to book one. The distinction is tricky. Community
groups living near private airports like Teterboro in
densely populated areas tend to be vigilant about expansion
into scheduled commercial airline service. At Teterboro,
such groups are seeking to block Indigo's operations.

Recently, bigger airline companies have also adopted the
idea of offering premium service on business jets - most
notably Lufthansa, which flies 48-seat business jets
between Newark and Munich and Düsseldorf and will add
Chicago-Düsseldorf service this spring.

Indigo is positioned to use private airport terminals,
including the one where its headquarters are at Midway.
Private terminals allow passengers to avoid long lines and
"security hassles," Mr. Pappas said. Indigo's fares will be
about the same as those of commercial airlines' walk-up,
refundable economy seats - the so-called Y fare.

In his office in Chicago, Mr. Pappas said that he had just
pitched the concept to a travel manager for a major
international company. "When I got to the pricing part of
the presentation, I explained to her that we're offering
the private-jet experience at a price that compares to the
full economy fare," he said. "She sat back and said, `I
thought you were going to tell me that your fares compared
to commercial first-class fares' " - which, Mr. Pappas
noted, many companies prohibit for use by travelers on
domestic flights.

Indigo also is marketing its service to the growing number
of companies that own fractional shares in corporate jets.
Under fractional deals, mileage on corporate jets is
limited to a fixed amount annually.

"We're seeing people who own a fractional share and don't
want to burn their miles on a trip between New York and
Chicago, say," Mr. Pappas said. "But these people have
become accustomed to work space and time convenience of the
private jet, and we think Indigo makes sense for them."

Well, that's the pitch, and we'll see. The big expansion of
fractional-share private-jet services in recent years
shows, though, that a segment of the heavy-duty business
travel market has come to despair at the steadily
deteriorating service and worsening accommodations of the
financially distressed commercial airlines, and to be
willing to pay a premium for something better.

On my late-afternoon return trip from Midway, I spoke with
such a business traveler, Anastasia Valentine, a director
of Resource 1, a software consulting company based near
Chicago. She was already a convert.

"When I found out at 2 p.m. that I was needed in New York,
I was quickly scheduled" on the Indigo 5:10 p.m. flight out
of Midway, she said.

She said she drove home from her office near Chicago,
packed a bag and "had a solid hour" with her husband and
14-month-old son before she headed to Midway. "I pulled up
at the hangar at 4:50 p.m., parked my car 10 feet from the
door," and was in the air for 20 minutes later, "calm and
relaxed" and "mentally and physically prepared to conduct
business," she said.


On the Road appears each Tuesday. E-mail:
jsharkey@xxxxxxxxxxx

http://www.nytimes.com/2003/03/18/business/18ROAD.html?ex=1048996469&ei=1&en=5e47ebd8de0b7812



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