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Thread: C.T.A. News!! what do you think will now happen?

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    ThE pOsT JaCkInG aSsAsSiN Notorious's Avatar Notorious is offline
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    C.T.A. News!! what do you think will now happen?

    SPIRIT ENTERING JAMAICA WITH LOW-COST FARES: 5/21/2005
    American carrier Spirit Airlines yesterday announced its entry into Jamaica with a warning to competitors, including Air Jamaica, that its low-cost strategy may force them to lower their fares to match its prices.

    The low-budget carrier will begin flights to and from Jamaica in six months, phased over November and December.

    "As long as you have a low-cost carrier in the market and the other airlines match, everybody benefits," said Spirit's vice-president for sales and distribution Marc Cavaliere.

    Transport Minister Robert Pickersgill, who was the guest speaker at yesterday's function, also warned that while Spirit's low fares would increase air traffic, it would also mean serious competition for the national carrier.

    "Things are going to become quite exciting for them (Air Jamaica)," said Pickersgill.

    The national airline is now grappling with substantial losses. In light of its financial problems, Prime Minister P J Patterson had urged the country to support the carrier.

    But Pickersgill said yesterday that it was the rules of the market that would dictate the fate of the national carrier, adding that proposals have been made for Air Jamaica - which under private management had pioneered a 'champagne service' - to switch to a low-cost carrier or "suffer the consequences".

    "They are going to have to respond to this kind of competition, because it is real," said the transport minister.
    Spirit, which will begin service to and from Kingston and Montego Bay with introductory rates starting from US$99, plans to reel in business travellers from Jamaica and tourists from the United States with low fares.

    Low-cost carriers offer cheap fares by trimming operating costs. Such flights don't offer in-flight meals, a service for which Air Jamaica has become known.

    But Cavaliere said based on Spirit's research in the Jamaican market, its snacks-only flights would not be a problem.

    Without saying exactly how much the investment in Jamaica was worth, Cavaliere said Spirit had been looking at Jamaica as a destination for about two years, and had spent 'many millions' to offer service here.

    "Having Kingston with two flights a day and Montego Bay with one flight a day, that's a pretty significant investment in a single country," he said.

    The airline flies 16 destinations within the Unites States, and it also flies to Mexico, the Bahamas and the Dominican Republic from its hub in Fort Lauderdale.

    Spirit's service to Montego Bay will begin on November 10 and Kingston, December 15, using its Airbus A319, Airbus A321 and the MD-380 aircraft.





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