LINCOLN- It’s confirmed that Red Way, the United States-based (US) startup airline that commenced its operations a few months back with flight routes originating from Lincoln, Nebraska (LNK), is discontinuing its services.
Challenges arising from escalating expenses and limited resources have placed considerable strain on the airline. The final flight is scheduled for August 31, departing from Orlando (MCO) and arriving at LNK, reports Ishrion Aviation
Red Way Airlines to Cease its Operations
Red Way announced on Wednesday, confirming the discontinuation of its operations and assuring customers of full refunds.
The airline conveyed through a statement on its Facebook page, “Customers need not take any action to initiate their refund; this process will be carried out automatically.” The airline anticipates that all refunds will be processed by the end of the week, with the exact timeframe for the refund to reflect in individual accounts varying based on the respective financial institutions.
Despite having launched new flights in June, the airline encountered challenges in demand for certain destinations. In response, they had to make the tough decision to drop some flights and offer substantial discounts, including fares as low as $49, in an effort to boost seat occupancy.
The challenges faced by Red Way stem from the culmination of costs and resource limitations, which proved insurmountable for the small startup within the aviation industry.
With their economies of scale, the airline expressed hope that larger carriers would recognize the potential and step in to serve Lincoln, Nebraska, with the service it deserves.
In late July, Red Way had previously announced the discontinuation of flights to Minneapolis, Atlanta, and Austin. The CEO of Red Way, Nick Wangler, mentioned that even BOGO (Buy One Get One) sales were employed as a last-ditch attempt to stimulate sales, but this strategy did not yield the desired results.
The formation of Red Way Airlines was a collaborative effort involving the Lincoln Airport, GlobalX Air Tours, and Global Crossing Airlines.
This partnership, which was introduced in March, aimed to attract tourism to other destinations and encourage travel to Lincoln.
The operation of chartered flights was facilitated by $3 million in funding from the American Rescue Plan Act (ARPA), with both the city council and the county board contributing $1.5 million each.
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