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But fun doesn't mean frivolous. A crucial change for the niche airlines has been in their conservative approach to safety. Only a few years ago, many new airlines were dismissed as inferior or even less safe than established carriers, in part because many of them flew older aircraft. But government regulators and carrier executives have worked together to inculcate a rigorous safety culture. AirTran, Frontier (based in Denver) and JetBlue are either flying entirely new fleets or quickly acquiring new planes to replace older stock. That not only helps with safety and the perception of safety but also is good for the books, at least in the long run. While new Boeing 717s cost $37 million each on the front end, AirTran CEO Joe Leonard says they burn 24% less fuel than AirTran's remaining DC-9s and thus cost $500 an hour less to operate.
The niche airlines know they will need every edge they can find as competition heats up. As major carriers emerge from bankruptcy protection with lower labor costs and other new economies, they will be more formidable. Some big airlines are holding on to valuable airport facilities they aren't even using, and they are strong-arming airport managers to keep out rivals. Some of those rivals suspect that the major carriers are working together to beat them back. In early May, within days of one another, the Big Six (American, Continental, Delta, Northwest, United and US Airways) said they would impose a new $10 round-trip fare hike on June 1--a move that triggered an investigation by the Department of Justice. Under a 10-year consent decree, the airline industry forbids coordinated fare increases. The investigation continues. A spokesman from American, which initiated the fare hikes, says the carrier is "in compliance" with "relevant laws and regulations." Whatever the outcome of that case, the larger picture is that there's plenty of competition for a wide variety of air service, from business carriers to discounters.
The Next-Best Thing to Owning a Jet
There are some 3,000 on-demand charter operators nationwide, and the Internet has made it easier than ever before to book one of their jets. They fly everything from single-engine prop planes to the Gulfstream V, like the one your favorite movie star uses. Even small businesses sometimes choose this option for a multicity trip that gets the execs back home the same day. Many operators report that business is holding steady despite the slow economy.