Airlines within an airline sound smart in theory. These five attempts reveal why the model struggled to succeed.
From time to time, traditional airlines attempt to compete with low-cost carriers by introducing a new product. This was particularly the case in the 1990s and early 2000s, when not one, not two, not three, not four, but five different budget airlines were introduced by Delta, United, and American Airlines predecessor US Airways. For a while, trying to start a new airline within an airline was the trendy thing to do. Here are 5 interesting failures.
Delta Express
Delta Express came first, founded in 1996. Based in Orlando, its primary target was snowbirds and other leisure travelers flying between the Northeast and Florida. Over its life, the airline flew to more than 30 different domestic destinations across 18 states, as far west as Oklahoma City, bringing passengers down to top destinations in Florida. The airline also flew into all New York City airports.
The fleet consisted entirely of Boeing 737-200 aircraft, featuring a livery very similar to Delta’s traditional livery. As a budget airline, Delta Express offered only one class of service, with no meal service or in-flight entertainment.
The bare bones airline had a decent run, lasting seven years, competing with MetroJet (US Airways’ version of the same type of service), Southwest Airlines, and JetBlue. Delta would go on to replace Delta Express with a new, similar, low-cost service, christened Song.
MetroJet
US Airways’ MetroJet took to the skies very shortly after Delta Express, giving the budget airline within an airline a run for its money from 1998 to 2001. However, while Delta Express focused on ferrying travelers to and from Florida, MetroJet targeted the Northeast as its primary market, competing with Southwest and AirTran Airways, as well as Delta Express to some extent.
From its Baltimore hub, MetroJet initially flew to a short list of destinations, including cities in Ohio, Rhode Island, New Hampshire, and Florida. Later in the airline’s life, it would adopt Delta Express’ tactics and focus more on offering travelers in the Northeast an easy and affordable choice for flights to Florida. Routes from Washington Dulles were also added.
MetroJet operated with a fleet of just under 50 Boeing 737-200 aircraft, with only one choice in service.
Unfortunately, MetroJet was not the profitable venture US Airways had hoped it would be. MetroJet was facing higher operation costs than Southwest, and the Sept. 11, 2001, terrorist attacks were the final nail in MetroJet’s coffin. Operations ceased and were wrapped up by December 2001.
