The airlines have discovered a nifty way to really get the attention of consumers and competitors. Just yesterday, Spirit Airlines announced service from Los Angeles International (LAX) to Las Vegas McCarron (LAS) with introductory one-way fares of just $1.00 per seat, plus applicable taxes. While this bargain fare is heavily restricted to travel on certain days and flights, it is creating quite a buzz.
Spirit Airlines is one of few airlines that focus on leisure travel. By this, I mean they fly to very leisure oriented destinations such as Fort Lauderdale, Orlando, and Atlantic City. They have also been part of the pioneering group of airlines that started charging for everything from pillows to advance seating assignments. So why has Spirit Airlines not already targeted LAX to Vegas? So many competitors – both low cost and legacy carriers – already serve the market. They needed a bold way to introduce their brand and get attention in order to make the five daily flights a success.
The industry impact has been interesting. Some airlines like jetBlue and Allegiant Air did engage in a “fare war” while much larger Delta Air Lines and United Airlines did not. My guess is that much of the passenger traffic on Delta and United is connecting through LAX and therefore they feel the discounted fares would not help to gain market share.
While the $1.00 fare seems ridiculous, it is a proven sales tactic that generates traffic to Spirit’s website, talk in the industry, and gets the seats filled.
Since 2008, nearly 20,000 daily seats have been eliminated from the greater New York City to Las Vegas air travel market. The Northeastern US also has a growing number of casinos popping up from Atlantic City to Southeastern Connecticut. As the economy begins to repair itself, Las Vegas has noticed that gamers are opting to stay local. Vegas needs a new and unique way to get their high profile casino gamblers back to the Nevada desert. Enter LV Air!
Yesterday it was reported that a new airline called LV Air intends to charter wide-body Boeing 767 aircraft to provide new passenger service between Las Vegas McCarron and New York’s JFK International Airport. The twist is that the brand’s aircraft are slated to have nightclub inspired mood lighting, club music played while boarding, flatbed seating for 18 passengers in it’s premium cabin, and onboard iPads available. Other features include holograms of celebrities providing the pre-flight safety announcements, meals catered from notable Las Vegas restaurants, and luggage transfer service direct from the aircraft to hotel room eliminating waits at the baggage claim carousel.
LV Air is talking to multiple casinos in Las Vegas to create partnerships for transportation of the casinos’ best “high rollers”. The agreements are said to include allowing those casinos to have first rights over seats to transport their clients. It is widely known that many casinos operate or lease private jets to transport their biggest players to the casinos. This concept would allow the casinos to provide a luxurious and unique air travel experience while avoiding the cost of leasing or operating their own jets.
Brilliant branding, multiple sales channels, and providing a unique experience from the big apple to the desert oasis is coming this year. Keep your eye out for developments at LV Air!