Ramon Lopez/WASHINGTON DC
A well-financed start-up carrier aims to move into markets currently dominated by US Airways, offering lower fares, higher frequency and an all-jet service.
Oneida Airlines, with corporate offices in Utica, New York, plans to begin flight operations from Syracuse, New York state in November with five McDonnell Douglas DC-9-30s. According to Stephen Enea, a board member of the airline, the fleet will double to 10 DC-9s within two months, configured with eight in first-class and 88 economy.
The airline plans to replace the ageing twinjets within a year with new Boeing 717s and 737-700s. Discussions with Boeing and leasing companies are continuing regarding seven 737s and fifteen 717s, but this mix might change, he adds. In addition, Oneida plans to purchase five 44-seat Fairchild 428JETs to serve smaller communities in upstate New York unable to support larger aircraft.
Aside from Syracuse, Oneida plans initially to serve eight New York cities, including Albany, Buffalo, Rochester, and New York City. Routes to Washington DC and Chicago are also sought. Oneida plans a combination of hub-and-spoke and point-to-point operations. The new airline entrant would add service to Florida destinations next February using 737-700s. In the second full year of operation, service would be expanded to include Pennsylvania and Ohio locations. The following year, transatlantic services to selected European destinations are planned.
Oneida says it has secured $180 million private funding from OAL Investment Group, a group of four companies: Internet Solutions Unlimited, an internet design firm; a biotech company and two real estate firms. Enea says Oneida expects to lose $25 million in its first year, but earn $24 million (on revenue of $492 million) the following year.
Source: Flight International
