COLUMBUS, Ohio-
Low-cost carriers are extending their push into the territory of their bigger competitors, with JetBlue Airlines Corp. announcing that it will expand to Ohio and Southwest Airlines Co. ready to debut in Washington, D.C.
The New York-based JetBlue said it will begin providing daily nonstop flights in October between Port Columbus International Airport and New York and Boston, offering introductory one-way fares as low as $69. Dallas-based Southwest on Thursday announced one-way fares as low as $79 for new daily nonstop flights between Washington Dulles International Airport and four cities.
The carriers are leading the way toward a low-cost model in an industry in which several major airlines have filed for bankruptcy in recent years, said Frank Werner, a finance professor at Fordham University in New York.
"In the last five years, since 9/11 and Iraq and the price of oil going through the ceiling, the major carriers have found out they have to become low-cost carriers," Werner said. "This is the natural evolution of the industry."
Defining low-cost airlines has become more difficult because there are times when the traditional carriers have lower prices for some flights than the low-cost airlines, said John Heimlich, chief economist at the Air Transport Association trade organization.
"I think the lines have been blurred and there's no longer a very meaningful distinction between one type of carrier and another," he said.
Over the last month, JetBlue started new service in three cities–Jacksonville, Fla., Pittsburgh, and Charlotte, N.C.–while announcing that new service will be coming to Columbus and three additional cities later this year.
In October, Dulles will become Southwest's second new location this year, following the airline's emergence in Denver in January.
Airline industry analyst Terry Trippler said JetBlue, Southwest and other low-cost airlines are filling the gap left when major airlines reduced flights to cut costs. However, he said, too many planes can mean excess capacity and a drop in fares that could damage the industry across the board.
"In the long term, we must have a stable air transportation system. If these airlines continue to bleed red ink, we're not going to have that," said Trippler, of the Minneapolis-based myvacationpassport.com travel club. "I'm not saying anyone is expanding irresponsibly, but we are in a situation where we have to be very careful."
JetBlue spokeswoman Jenny Dervin said the company's growth strategy is appropriate and managed. JetBlue sought at the start of the year to expand to between eight and 10 new cities but later planned to scale back a growth plan due to increased fuel costs, she said.
By focusing on shorter flights and keeping planes in the air about 13 hours per day, the airline now expects to expand to 12 to 15 new locations in 2006, Dervin said.
She said the airline stimulates the economy and tourism at new sites, while driving fares down by 50 percent in some locations.
Southwest spokeswoman Edna Ruano said Southwest starts out small in each new location and adds flights as demand increases.
"We want to grow," she said. "We also keep in mind that we want to grow where we can be profitable and efficient."
JetBlue's expansion efforts come as it posted its second consecutive quarterly loss in April. The airline said high fuel costs drove it to a first-quarter loss of $32 million, versus a year-ago profit of $6 million.
Southwest reported in April a modest increase in first-quarter profit. Earnings edged to $61 million from $59 million a year earlier.
Here are some examples of how low-cost airlines are expanding:
— Dallas-based Southwest Airlines Co. announced fare and flight plans for its October debut at Washington Dulles International Airport, with service to Chicago, Las Vegas, Orlando and Tampa Bay. The airline's service to Denver debuted in January.
— JetBlue Airlines Corp., based in New York, announced it will debut in Ohio in October, providing daily nonstop flights between Port Columbus International Airport and New York's John F. Kennedy International Airport and Boston's Logan International Airport. Within the past month, the carrier has started service in Jacksonville, Fla., Pittsburgh, and Charlotte, N.C. It says it expects to finish 2006 serving 12 to 15 more cities than it served in 2005.
— AirTran Airways, based in Orlando, Fla., announced in June it will add 2,500 jobs over the next five years in Georgia, where it has its hub in Atlanta. The airline said it plans to add new domestic routes and more than 80 new Boeing 737s to its fleet.
