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So, if you don't know what Ted is, it's a low cost airline created by United. It had one hub in Denver and it had three secondary hubs: Los Angeles, Chicago O'Hare, and Washington Dulles.

I thought that Ted would be successful. But, it ceased operations in 2008. Why?

CatchAsCatchCan
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  • Running an airline is a not easy. Thinking an airline can be successful is not enough to make it successful, there are always factors no one can foresee (including marketing, alliances, travelers' feelings,...) – Manu H Apr 23 '20 at 07:16

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Due to the airline crisis caused by spiking fuel prices, on June 4, 2008, United announced that the Ted brand and services would be discontinued with the Ted aircraft being fitted with United's First Class cabin and eventually being incorporated into United's regular fleet to compensate for the removal of United's entire Boeing 737 fleet. Operations were folded back into the mainline brand on January 6, 2009.

The same Wikipedia Page that you included in the description does describe why the airline ceased operations.

Note that although Ted did cease operations partially due to the spiking fuel prices, many other budget airlines did continue operations.

Super
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So, in 2008, oil prices reached an all time high. It was at around 147 dollars per barrel. Therefore, budget airlines were just too expensive to do, and those planes were incorporated back into United Airlines' regular fleet to make more money.

Source: https://www.denverpost.com/2008/06/04/united-pulls-plug-on-ted/

  • Can you back up your claim with some resources? Many budget airlines survived 2008, like Ryanair, so I wouldn't say that oil prices were the only problem here. – Ron Beyer Apr 22 '20 at 22:07
  • @Ron one possible source is this Wikipedia page, although its citations aren't particularly clear. – CatchAsCatchCan Apr 22 '20 at 22:18
  • @Ron Wikipedia mentions this page in one of its citations: https://www.denverpost.com/2008/06/04/united-pulls-plug-on-ted/. You can find more info there. –  Apr 22 '20 at 22:21