This article from NYTimes.com has been sent to you by psa188@xxxxxxxxx /-------------------- advertisement -----------------------\ THE DREAMERS - IN SELECT CITIES FEBRUARY 6 Set against the turbulent political backdrop of 1968 France when the voice of youth was reverberating around Europe, THE DREAMERS is a story of self-discovery as three students test each other to see just how far they will go. "Pure Bertolucci," proclaims The New Yorker. THE DREAMERS makes its North American premiere at the 2004 Sundance Film Festival. http://www.foxsearchlight.com/thedreamers/index_nyt.html \----------------------------------------------------------/ Not Yet Airborne, and Ted Is in a Fare War January 24, 2004 By MICHELINE MAYNARD When United Airlines unveiled plans for Ted, its latest attempt to compete in the low-fare airline game, United deemed the carrier so perky that it could wink. Yesterday, Ted proved that it could blink, too. Three weeks before Ted is scheduled to make its first flight from its home airport in Denver, United said it would lower Ted's most expensive fares, pushed into the move by recent fare-cutting by its chief rival, Frontier Airlines. United said fares on Ted, which begins operations Feb. 12, would cost no more than $299 each way, plus a $10 fuel surcharge. That matches a $299 cap that Frontier placed on walk-up fares - those sold at the last minute, with no restrictions - to cities Ted is also scheduled to serve. That $299 fare is also the most that the leading low-fare carrier, Southwest Airlines, charges for its tickets, although Southwest does not fly to Denver. The move underscores the brutal competition within the airline industry, especially in the low-fare segment, which now comprises 25 percent of flights within the United States, measured by the number of passengers carried. United, part of UAL, introduced Ted late last year as its entry into the increasingly crowded low-fare segment, which includes Song, started last year by Delta Air Lines, and JetBlue Airways, the Queens-based carrier that has become the biggest airline at Kennedy Airport. Ted will arrive several years after United's last attempt at an airline-within-an-airline, the Shuttle by United, failed to sustain passenger interest. Given that, some analysts have looked skeptically at Ted, saying that its odd name suggests "the end of United." In its inaugural phase, Ted will fly from Denver to 14 cities, including Los Angeles, Las Vegas and Phoenix, as well as destinations in Florida. Eventually, United officials say they plan to expand Ted flights to O'Hare International Airport in Chicago and Dulles International Airport near Washington, two of its other hubs. Although passengers can connect on Ted to other United flights, and will collect United frequent-flier miles, Ted is getting its own peppy identity, in a quest to compete with the frothy approach of other low-fare airlines. Ted's planes have been painted bright blue and marigold while its inflight entertainment system, Ted TV, will feature comedy programs. There will also be an official Ted beer, the brand yet to be selected. In introducing the airline in late November, Sean Donohue, a United vice president, said Ted would offer a friendly, casual flying experience, adding that if it could wink, it would. But Ted's initial fares, from Denver to cities on the West Coast as well as Florida, caused some scowls. Despite its low-fare claim, walk-up fares on Ted were initially as high as $414 each way. To be sure, restricted fares were lower, and surveys by Denver newspapers found Ted to be competitive on advance purchases with other carriers serving the city. Nonetheless, by capping fares at $299, plus the $10 fuel surcharge, United removed the biggest complaint about Ted. Moreover, the move was an admission that United cannot command a premium for Ted flights simply because a big-name carrier is behind the airline, said Michael Allen, president of Back Aviation, an industry consulting firm. Given its experience with the Shuttle by United, the airline should not have tried to charge so much, Mr. Allen said. "They're not going to be able to launch a new service as a low-cost competitor offering fares that would make them a high-cost competitor," Mr. Allen said. "I'm glad somebody came to their senses." A spokesman for Frontier said the airline had expected United to match its move, the second time in a year that Frontier has capped its fares. In 2003, Frontier reduced its highest walk-up fares from $499 to $399. "The economic situation has generated that kind of response," said Frontier's spokesman, Joseph I. Hodas. Mr. Hodas, speaking by phone from the annual National Western Stock Show and Rodeo in Denver, where Frontier is an exhibitor, said Ted had not affected his airline's advance bookings. Kevin P. Mitchell, chairman of the Business Travel Coalition, which represents corporate travel departments and business travelers, predicted even lower fares ahead as the traditional airlines try to prevent low-fare competitors from taking passengers, no matter the cost to profitability. "They're going to do everything they can to stop the market share shift, even if it kills them," Mr. Mitchell predicted. "It's a great year to be a consumer." http://www.nytimes.com/2004/01/24/business/24ted.html?ex=1075974062&ei=1&en=dca803c5a497ed07 --------------------------------- Get Home Delivery of The New York Times Newspaper. Imagine reading The New York Times any time & anywhere you like! Leisurely catch up on events & expand your horizons. Enjoy now for 50% off Home Delivery! Click here: http://www.nytimes.com/ads/nytcirc/index.html HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2003 The New York Times Company