After studying abroad in Europe, I have to admit that I became pretty envious of their transportation options. Flying on the cheap was so very doable, with airlines like EasyJet and RyanAir. But with the launching of JetAmerica, it looks like I can put my travel envy aside soon enough.

Thanks to Miami Air International, a privately owned airline, we’ll soon get to take advantage of $9 flights from Newark Liberty International Airport (EWR) in New Jersey -close to the New York border - to Melbourne International Airport (MLB) near Orlando, Florida, and back.

Other potential starts and stops include Toledo, Ohio; South Bend, Indiana; Minneapolis, Michigan, and Lansing, Michigan. And that’s just to start out. The carrier plans to add six more flights from Toledo to Minneapolis starting in August.

A Good Starting Point

As we’ve all heard repeatedly at this point, it costs a lot to run an airline. Hence the reason why we’ve seen so many airlines go bankrupt over the past few years. And it isn’t just the fuel that weighs down on profits. It’s also the fees. Believe it or not, it takes more than a “pretty please with sugar on top” to get permission to land and takeoff from an airport.

But JetAmerica has cleverly gotten around that by targeting small and midsize airports that have suffered drastic declines in business over the past several years, largely because of airlines cutting back on the number of daily flights they run.

And since desperate times call for desperate measures, the Lansing, South Bend, Melbourne and Toledo airports have all eagerly subsidized JetAmerica with $1.4 million in grants for the first year alone. Add that to some $867,000 in waived airport fees and $1.1 million in marketing and advertising assistance, and the new airline has a recipe for success.

They plan on making money not only through the natural appeal of cheap tickets, but also by charging $15 per checked bag. While other airlines had to suffer disgruntled customers for imposing fees on checked bags, who’s going to argue about paying $15 on top of a $9 ticket? Very few, I’m sure.

Also, not all prices will be under $10. The first 19 seats go for $9 on each plane, and then they start going up as high as $199, so early birds get the best bargains.

As usual, the idea isn’t wholly new, since Skybus Inc. tried it out not too long ago. The problem with Skybus Inc. was that fuel prices rocketed higher than its profits, and it went bankrupt last year.

So what makes JetAmerica so special? We don’t know yet, but we’re looking forward to finding out.

Tuesday, May 27, 2009 - by Jeannette Di Louie, Assistant Editor, Mt. Vernon Research