Ted, the discount alter-ego of United Airlines born in Denver, has weathered criticism but continues to grow.
On its second anniversary this week, United executives say Ted is an important part of the carrier’s efforts to lure different travelers with different products and say they plan to grow it.
“Ted has been very successful with customers and financially,” said John Tague, United’s executive vice president of marketing, sales and revenue. “It has improved profitability for us in leisure markets, has allowed us to be more competitive for the customer dollar in those markets.”
United created Ted during its bankruptcy and expanded its fleet by 20 percent. Ted now has about 257 daily flights, including 43 out of Denver, and carries about 27,000 customers daily.
Ted’s average load factor – a measure of how full planes are – is more than 83 percent since its launch in 2004, United spokesman Jeff Green said.
At a time when United increasingly competes against low-cost carriers, Ted has helped it compete against airlines such as Frontier and Southwest for budget-conscious leisure travelers.
United is “certainly a formidable competitor and a big airline in Denver, and Ted is part of that,” said Frontier spokesman Joe Hodas. However, “We’ve (still) managed to grow quite handsomely over the last couple of years.”
Ted is United’s laboratory for testing things such as snack boxes and more efficient boarding processes. Both were deemed successful and then introduced on other United flights.
Last year, United began selling products on Ted flights such as playing cards, stuffed animals and headphone splitters.
One of Ted’s key features is the lack of first-class seating on its Airbus 320s. That leaves room for 156 passengers, including 66 in premium “Economy Plus” seats.
At Denver International Airport, United plans to move Ted from the A concourse to the B concourse this year and will begin testing an automated jet bridge that will allow passengers to load and exit from both ends of the plane.
Ted is “the kind of experiment that every airline does constantly, but every airline doesn’t go to the extent of branding it,” said airline consultant Robert Mann. Years from now, Mann said, he suspects Ted “will be a footnote, but a valuable experiment.”
United Airlines said last year that Ted would live on even as Delta Air Lines announced it would put an end to its discount operation, Song.
In a statement Friday, United’s president of Ted, United Express and operational services, Sean Donohue, said Ted “remains a thriving part of United.”
For the second anniversary of Ted, United is offering 2,000 bonus miles for customers who register, buy and fly a round trip on Ted between Feb. 12 and May 12.
Staff writer Kelly Yamanouchi can be reached at 303-820-1488 or kyamanouchi@denverpost.com.
CRUISING ALTITUDE
United’s discount carrier, Ted, celebrates its second anniversary this week. Airline executives say Ted has improved United’s profitability in leisure markets.
257 daily flights Ted makes
43 daily flights from Denver
27,000 customers carried daily
