Startup 'Low-Cost' Airline Coming To Newport News

Feb. 10, 2012
Analyst Michael Boyd says Newport News is a "good market and a well-run airport" but he expressed reservations at the prospect of a startup airline becoming successful in the current industry climate

Feb. 10--NEWPORT NEWS -- The new airline coming to Newport News-Williamsburg International Airport is a startup that will be headquartered on the Peninsula.

The name and other details, however, won't be revealed until Monday.

Jennifer Chambers, a spokeswoman with Seventh Point, a Virginia Beach-based advertising, marketing and public relations firm handling the announcement, said Thursday afternoon that the incoming airline is not a previously existing carrier.

"This is great news for the region," she said. "As a frequent flier, I'm very excited."

Chambers declined to provide any route details or other information regarding the new airline. The official announcement will be made at the airport on Monday at 4 p.m.

"It is a brand new airline with flights from Newport News," said Ken Spirito, executive director of the Peninsula airport. "It's going to be very exciting thing for the entire Hampton Roads area."

Spirito said the management team is comprised of former officials from existing airlines. He also said the airline will "definitely be a low-cost carrier" and will offer traditional amenities and frequent traveler benefits.

"The airline is going to look at the market and see where people are flying and capitalize on the history and success we've had in a lot of markets and others as well," Spirito said, when asked if the airline would fill gaps anticipated with the March 9 loss of AirTran Airways or open up new markets that aren't currently served from the Peninsula.

"They're looking at a lot of markets to see which would be most profitable," Spirito said.

The development comes as AirTran prepares to cease operations as part of an ongoing merger with Southwest Airlines. The departure of the Peninsula's most popular air service will leave gaps in low-cost service to New York, Boston, Atlanta and Orlando unless a new airline offers flights or a carrier already located at the airport expands its list of destinations. Allegiant Airlines began non-stop service toOrlando-Sanford International Airport in September.

Michael Boyd, a Colorado-based airline industry analyst, said Newport News is a "good market and a well-run airport" but he expressed reservations at the prospect of a startup airline becoming successful in the current industry climate.

"There's not a crying need for a new airline," he said, adding that Virgin America was probably the most recently introduced U.S. carrier. "It depends on what kind of airline. But, who knows? Stranger things have happened. It is very, very hard to start an airline."

Boyd said the industry is "flattening out" and will shrink in size. He warned against issuing public funds to cover airline startup costs, but said revenue guaranties would be a valid use.

Florence Kingston, the Newport News director of development who heads a cooperative of Peninsula localities that sometimes offers revenue guaranties to new airlines, could not be reached Thursday for comment.

Newport News City Manager Neil Morgan said he has heard of the new airline starting up in the city, but he doesn't know whether any financial incentives will be provided. Morgan said he believes it's still in the formative stages.

"I think there's quite a lot of work still to be done with the whole situation," said Morgan, who called the developments "interesting and positive."

Reporter Joe Lawlor contributed to this report.

Copyright 2012 - Daily Press, Newport News, Va.