Competition drives airfare prices down between Fairbanks and Anchorage
FAIRBANKS, Alaska (KTVF) - A recent sale gave travelers between Fairbanks and Anchorage a chance to buy tickets for just under $60 one way. The sale was started by Ravn Alaska when they announced low airfares to various Alaskan destinations. A on-way ticket between Fairbanks and Anchorage was $59 during the sale. Alaska Airlines quickly responded by offering one-way airfare between Alaska’s two largest cities for $57.
Ravn Alaska filed for bankruptcy in the spring of 2020, blaming declining sales and revenue due to COVID-19 for their financial troubles. Many of their assets were sold to various companies at auction, and the Ravn name was sold and restructured. They resumed service in November and by the end of the month had daily flights between Fairbanks and Anchorage.
According to Ravn CEO Rob McKinney, they wanted to offer the sale as a way let previous customers know they are back as well as attract new customers.
Even though the sale has ended, McKinney said that having multiple air services operating in Alaska helps consumers. He said that when there are more choices and one runs a sale, the others will often match the sale.
“The consumer benefits. If there is just one air carrier in a market, there is no real incentive for them to, certainly very frequently, run opportunities or fare sales or those kinds of things. So having more than one air carrier definitely helps push prices down,” McKinney said.
He went on to say that it also gives consumers more frequency with flights and more times of day when flights depart which further benefits a community.
Ravn and Alaska Air are currently the only major carriers to offer daily flights between Fairbanks and Anchorage.
McKinney said that Ravn is also offering connecting flights with Alaska Airlines so travelers can book flights on Ravn and continue to the rest of the U.S. with Alaska Air.
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