Itâ€™s not every day that you hear about a new airline starting service. With the immensely strong barriers to entry including existing airlines, financing issues, and federal regulations, there are not many new airlines founded today. Anymore, it seems like the industry is consolidating via mergers, but Arrow is aiming to show that new niche airlines can succeed even in this economy. This new airline is banking on people valuing their time and wanting to avoid the hassle of traveling with traditional airlines and long security lines. I had the opportunity to meet with Arrow CEO Russell Belden this past Monday and take a flight from Seattle to Oakland (and back).
Arrow is unique in few ways. First of which is that it is a private club in which people can purchase memberships ($500 per month with a one year commitment) and then have access to purchase tickets on their aircraft. But unlike other private jet services which operate similarly, Arrow will have scheduled services.
They are planning to launch Seattle (out of Boeing Field – BFI) to Oakland (OAK) and San Jose (SJC), which will cost members about $500 each way. The ticket costs are comparable to a first class ticket on other airlines serving similar routes.
Once Arrow receives 200 membership commitments they will purchase their initial aircraft and make plans to begin service within three months (delivery time-frame for a new plane).
Arrow has a target market of business professionals who have much better things to do than simply wait in line. Sure, a flight on Arrow might cost slightly more than a typical first or business class ticket, but isnâ€™t a CEOâ€™s time exceptionally valuable?
Arrow believes they will be able to shave off as much as two hours simply due to eliminating the added hassles of the typical airport experience. With on-board Wi-Fi to be installed on their new aircraft, it will also enable professionals to keep in constant contact and be productive at 30,000 feet. While our test flight did not have Wi-Fi on board, we actually had an intermittent signal on our mobile phones throughout the journey.