Editorial: Friendly skies for Ted?

Friday, Nov. 14, 2003 | 8:49 a.m.

Ted, a new low-cost carrier operated by United Airlines, will start offering service in February to cities mainly in the West. Las Vegas will benefit because at the outset there will be flights here from San Francisco, Los Angeles and Denver. The new airline, whose name comes from the last three letters of United, is hoping to mount an effective challenge to low-cost carrier Frontier, whose hub is in Denver.

The airline industry truly was revolutionized by Southwest Airlines, with its low labor costs, short-haul flights and no-frills philosophy. This has resulted in cheap fares that passengers have come to love. Impressive corporate earnings have impressed investors as well, especially since the airline industry overall has fallen on hard times. Some of the larger, long-haul airlines have tried to mimic the success of Southwest and other low-cost carriers, such as Jet Blue, but haven't fared well.

United, which is trying to emerge from bankruptcy, itself discontinued its Shuttle in 2001 because its costs ran too high -- and many analysts are skeptical that this latest low-cost version will do any better. For now, however, this additional competition -- which hopefully will be translated into lower fares and more convenience due to additional flights to Las Vegas -- can't be seen as anything but a positive sign for our tourism-based economy whose success relies so heavily on the airline industry.