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Nor is it clear how Ted and Song can make money. The staff at both airlines work at the same high-wage rates as their mainline colleagues, yet the fares are much cheaper. One airport executive is skeptical: "Ted calls itself a low-cost operation, but it will also be a low-revenue producer." Song filled less than one of every two seats in September, the most recent month for which figures are available. And aviation sources told TIME that Song has postponed plans to add more airplanes to its fleet, raising questions about how well its business model is working.
The clear victor in this battle is the airline passenger. "There has never been a better time to be looking for a cheap ticket," says Frontier's CFO Paul Tate. Stephen Kulakowski couldn't agree more he happily flew home from Florida on JetBlue.
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