New Airline at GYY

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From: 
http://nwitimes.com/articles/2006/11/27/news/top_news/50a754ac397629378625723300117f87.txt



/This story ran on nwitimes.com on Monday, November 27, 2006 12:34 AM CST/

Can SkyValue fly where Hooters lost its wings?

*BY KEITH BENMAN
kbenman@xxxxxxxxxxxx <mailto:kbenman@xxxxxxxxxxxx>
219.933.3326*

SkyValue USA will be flying into Gary with high hopes of soaring where 
previous airlines have stalled.

It won't be easy, according to air industry observers and local travel 
agents.

"I think the problem they will have is they are going after the greater 
Chicago market, which I would throw Gary into, so they're competing with 
the bigger airlines out of Midway and O'Hare," said Roger King, senior 
analyst for transportation with CreditSights, a provider of independent 
credit research.

SkyValue flights from Gary/Chicago International Airport to five leisure 
destinations, including Las Vegas and Orlando, start Dec. 15.

The Gary airport has been without regularly scheduled airline service 
since January, when Hooters Air and the "Hooters Girls" made their last 
flight out. Before that, Southeast Airlines did a 10-month stint there. 
Before Southeast it was Pan Am.

"Would you rather fly Southwest out of Midway, or these guys out of 
Gary?" King added.

SkyValue's executives say customers already are answering that question, 
with 10,000 reservations booked since mid-October.

"So you live there in Northwest Indiana and want to fly to Vegas and 
Orlando," SkyValue USA Chief Executive Officer Darrell Richardson said. 
"What makes us attractive is the free parking, the hassle-free boarding, 
and the short drive to the airport. That's all good stuff."

SkyValue is touting more than $100 in savings for seven days of parking 
free at Gary versus Midway and O'Hare. The two big Chicago airports 
start pricing parking at $12 and $9 per day respectively in outlying 
economy lots. To park close in costs up to $26 per day.

Richardson also is touting what he says is an important difference 
between SkyValue and airlines that flew out of Gary previously.

"No one has ever come into Gary and said this is where we're gonna be," 
Richardson said. "Gary is going to be our hub. It's different than 
anything that's been in there before."

The hub for Hooters Airline was Myrtle Beach, S.C., a place "no one 
wanted to go," airport officials say now. Hooters went to some desirable 
Florida destinations, but the flights connected through Myrtle Beach and 
even Columbus, Ohio.

"Those guys (SkyValue) are flying to places people want to go," said 
Chris Curry, Gary airport director.

All SkyValue flights will be direct. That is a big plus, local travel 
agents say.

"People want direct flights; they want nonstop," said Barbara Higby, an 
agent at Aladdin Travel in Munster.

Even so, Aladdin clients are so far leery of booking on SkyValue, which 
has even less brand recognition than the previous airlines at Gary, she 
said.

Higby and other travel agents say most customers are still opting for 
Southwest out of Midway.

The reason region travel agents do much of their booking on Southwest is 
simple, said Dean Cooper, owner of Griffith Travel Center.

"No. 1 would be price," Cooper said. "And real close at No. 2 is nonstop."

Still, the dynamics of the discount airline industry is changing, as 
leisure airlines such as Allegiant enter the smaller markets and new 
low-cost players such as JetBlue enter larger markets like Chicago.

"We sell a lot of Southwest Airline tickets, but prices on Southwest 
have been going up, so they're not as discounted as they use to be," 
Cooper said.

SkyValue initially was offering Las Vegas and Phoenix flights for $89, 
while comparable Southwest tickets were priced at $109 for those 
destinations.

It would be hard for any leisure airline to measure up to Southwest's 
schedule, which has 11 daily flights to Phoenix and 12 to Las Vegas from 
Midway. SkyValue will have two per week to Phoenix and two per week to 
Las Vegas.

[EXTRAS]
Flying head to head
SkyValue's ticket prices from Gary are comparable with competitors at 
South Bend, Midway and O'Hare.

SkyValue
Gary/Chicago International Airport
(first flights Dec. 15 to Dec. 18)
to Las Vegas $89
to Fort Lauderdale $129
to Orlando $79
to Phoenix $89
to St. Pete $129

Allegiant Air
South Bend Regional Airport
to Las Vegas $139
to Orlando/Sanford $79
to Tampa/St. Pete $79

Southwest Airlines
Midway International Airport, Chicago
to Las Vegas $109
to Phoenix $109
to Orlando $109
to Tampa Bay $79-$109
to Fort Lauderdale $109

Ted Airlines (United)
O'Hare International Airport, Chicago
to Las Vegas $130
to Orlando $159
to Tampa $189
to Phoenix $130
to Miami $179


*Based on lowest fares listed on airline Web sites on Oct. 26 for travel 
date of Dec. 15.
Holiday fares for airlines other than SkyValue can be much more than 
those listed. For example, Allegiant Tampa/St. Pete fare

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