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United President Warns New Low-Cost Carriers Can’t Control Their Business Model

Dennis Schaal photo
Dennis Schaal

Photo Credit: United Airlines President Scott Kirby (left) spoke with Skift Editor-in-Chief Tom Lowry at Skift Forum Asia in Singapore May 27. Kirby vows to take on low-cost carriers in a more aggressive way. Skift / Richard Lai

Skift Take

Network airlines have long sought to drive out low-cost carriers by matching fares in certain markets. But now, equipped with basic economy fares and other options, United Airlines' Kirby vows to match the fares of new entrants in a much more rigorous way.

United Airlines President Scott Kirby issued a warning to potential new-entrant low-cost-carriers, including JetBlue founder David Neeleman's Moxie: United will match your fares. Kirby, speaking on stage at Skift Forum Asia in Singapore Monday, said he's heard of about 50 airlines over the years that were supposed to be created but Virgin America, founded in 2004, was the last startup airline in the United States that actually became a reality. The low-cost airline model is predicated on the competition not matching prices, Kirby said, and unlike the situation over the last 30 years, United no

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