New Airlines Fly on a Wing and $10

Bargain-basement US carriers prepare to rock the industry
By Dustin Lushing,  Newser Staff
Posted May 21, 2007 6:49 PM CDT
'   (Associated Press)
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(Newser) – Frequent fliers will soon be reminiscing about the small luxuries a $200 airline ticket bought: like free Diet Coke. A new wave of start-up airlines is selling ultra-affordable flights as low as $10. But prepare to plunk down for seat assignments, checked baggage—and even peanuts.

No-frills players like Skybus and Allegiant Airlines are taking a page from flush Irish carrier Ryanair, earning profits on side deals, like hotel bookings and on-board liquor sales, and charging for extras. That may change the way that old-guard airlines do business: American has already ditched pillows, and other major carriers are scrounging for cuts.