United's Low-Cost Carrier May Not Be The Answer To Airlines Woes

Hello, Ted. Short for "United," the new airline launches this week, as bankrupt UAL hopes to dig out from under the financial rubble with an alternative to its higher-cost, traditional carrier.

But the question is, can Ted do the job?

Henry Harteveldt, an airline and travel analyst with Forrester Research in San Francisco (CA) tells the French news agency AFP travelers will want Ted to be "everything they expect from United Airlines and then some." He suggests United would be better off overhauling the existing airline to be more accommodating to business travelers. Ted hasn't announced any fares yet.

Ted's initial fleet will consist of four Airbus A320s whose 156-seat cabins will have no first class. By the end of next year, Ted plans to have 45 aircraft in the air. About half will be based at the United hub in Denver (CO).

Initially, the airline will fly from Denver to Reno, Las Vegas, Phoenix, New Orleans, Tampa, Orlando, Fort Lauderdale and Ontario (CA).  It will also serve Las Vegas from San Francisco and Los Angeles and fly to Phoenix from San Francisco.

But analysts are skeptical of what they think is a change in name only. "I hope they have put more thought into this thing than the name," said Terry Trippler of CheapSeats.com.

FMI: Ted