Apple Vacations had been packaging vacations to Mexico and the Caribbean for about 30 years when in 2001 the family-owned company turned its attention to the possibility of operating a charter airline.

Somewhere down the road, they hoped the charter service - USA3000 Airlines - would develop into a regularly scheduled airline serving the general flying public.

USA3000 began charter service in December 2001, just three months after the 9/11 terror attacks. But demand for charter flights fell sharply because of the attacks, so the company accelerated its plan for scheduled service.

Now USA3000 is part of the expanding low-fare airline presence that is sweeping the country and giving major carriers such as Delta Air Lines fits.

In fact, the suburban Philadelphia-based company later this month will expand its service at Cincinnati/Northern Kentucky International Airport, site of many previous failures by low-cost airlines.

“We knew we could make a go of it, but we have been happily surprised by the exponential growth we have seen on the scheduled side.”

Trevor Sadler, Director of Contracts and Services, USA3000

“We knew we could make a go of it, but we have been happily surprised by the exponential growth we have seen on the scheduled side,” said Trevor Sadler, the company’s director of contracts and services. “With the drop-off in demand after 9/11, we had to look for other ways to utilize our planes. Now, I am happy to say that we have to stand on our own two feet as an airline, and we are doing it by remaining profitable with our scheduled service.”

The airline is privately held by the Mullen family of Philadelphia, which also owns Apple Vacations.

Sadler wouldn’t divulge financial performance details about USA3000, except to say that scheduled passenger service now accounts for nearly half the carrier’s revenue and flights, with charter flights taking up the balance.

When the airline became operational, it was all charter and didn’t start scheduled service until a year later with six flights a week from Philadelphia.

Now USA3000 has scheduled service to Cancun, Fort Lauderdale, St. Petersburg/Clearwater, Fort Myers, and two cities in the Dominican Republic from nearly 20 Northern and Midwestern cities.

USA3000 has been serving Cincinnati with a twice-weekly flight to Cancun, Mexico for about 18 months. On Dec. 19, it will start a route to Fort Myers, Fla. that will run three days a week, and Sadler said the airline could expand further here if that proves successful. The fares to Florida start at $59 each way pre-tax, and top out at $149 each way before taxes. The Cancun fares start at $99 each way.

The service is on an 168-seat Airbus 320-214 - the airline is expanding its fleet from 10 to 14 planes next week - and all passengers get a full meal and in-flight entertainment, Sadler said, adding that the company seeks out local entertainers for in-flight musical choices.

“And we’ve made it a point to put a substantial number of the seats at the low fare on each flight, instead of only putting one or two and then getting customers with a higher fare when they call,” Sadler said.

Robyn Sorbello of Loveland has flown the airline several times on a charter to the Dominican Republic, and said that the carrier is as good as any of the others.

“I really like the new planes - you’re not squished in like cattle,” she said.

As for going up against Delta, which operates its second-largest hub locally, Sadler said he is confident that USA3000’s service and low prices will allow the carrier to survive where others have failed. Since 1982, 11 low-cost carriers have started service here, only to leave after Delta priced at or below the competing fares and added flights. As a result, Cincinnati has had some of the highest fares in the country.

“We don’t think we are trying to change history, but rather, what we can hope for is that the traveling public can see that we are here over time, and that if you don’t support the low-fare option, it won’t be around and that they’ll be back where they started from,” Sadler said.

Delta is helping USA3000 with its service here, for an undisclosed price. The Atlanta-based airline is managing all ground operations, including baggage handling, customer check-in and so forth, under a ground-use agreement common among airlines.

Delta spokeswoman Tanya Dunne wouldn’t say what kind of response the airline plans to the new Fort Myers service, only that “Delta will remain competitive.”

A check of Delta’s fares and schedules to Fort Myers for a Dec. 19 departure and return a week later shows a non-stop price of nearly $450, while a flight that connects through Atlanta costs about $250. But those flights operate seven days a week.

Dick Crist, a member of the Kenton County Airport Board, which oversees operations at the airport, has already booked two trips to Florida on USA3000, and said he welcomes the alternative.

“It’s on a little different schedule, allowing you to leave early in the morning and then have the whole day there once you get to Florida,” Crist said. “If people support it, I’m sure they’ll stay.”

Source Cincinnati Enquirer Friday, December 10, 2004

By James Pilcher Enquirer staff writer

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