February 02, 2007

SkyValue

Here is how we could have utilized some of the DOT grant monies to help Allegiant, by sudsidizing flights, when they had low bookings versus spending the monies on IMG. Story on SkyValue from the Post-Trib:

There are few items you could buy for $1 these days: a candy bar, fries or a burger from a special menu at a fast-food restaurant. But on Sunday and Wednesday, you can add a flight from Gary to several sunny places in the United States as well.

In an effort to increase passengers flying on SkyValue USA, a $1 one-way fare is being offered on flights to Mesa, Ariz., Las Vegas, St. Petersburg and Orlando for flights leaving Gary/Chicago International Airport either Sunday or Wednesday, Feb. 7. The $1 fare is also good for flights returning from those destinations to Gary on Sunday or Feb. 7.

However, the $1 price tag is based on the purchase of a round-trip ticket. Return flights begin at $79, but could reach nearly $200 depending on the return date. Gabrielle Griswold, senior executive vice president of SkyValue, said the promotion is expected to be repeated throughout the year as the airline continues to build a strong customer base.

"We've had tremendous response, and people are very pleased with the regional airports," she said, adding that the $1 fares will be offered sporadically when flights are expected to have few passengers. SkyValue is attempting to lure customers from Northwest Indiana and Chicago, who typically turn first to Midway Airport, said SkyValueCEO Darrell Richardson in a prepared statement.

"Repeated business and bookings are so strong, we know if you try us, you'll be back," Richardson said. "Our special promotion is to attract a larger audience of passengers who may not be aware of SkyValue's affordable air service and the convenience of the Gary/Chicago Airport as an alternative to Midway and O'Hare."

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