Lasting barely a summer, Nebraska budget airline to cease operations

23.08.2023 - 21:53 / thepointsguy.com

Lincoln, Nebraska, is losing an airline at the end of summer.

Red Way, a budget startup that some saw as an ill-fated attempt to revive commercial airline service in Nebraska's capital, is ceasing operations on Aug. 31, the startup announced in a Facebook post on Wednesday.

The startup lasted just over two months at Lincoln Airport (LNK), operating its inaugural flight on June 8.

Red Way said it faced mounting challenges as a small startup solely focused on Lincoln, as "compounding costs and a lack of resources" made it impossible for the airline to sustain its operations.

"It is our hope that other carriers see the incredible potential, and with their economies of scale, are able to provide Lincoln with the service it is so worthy of," the Facebook post read.

Want more airline-specific news? Sign up for TPG's free biweekly Aviation newsletter.

Sarah Riches, chief marketing officer of Red Way, declined to comment further to TPG on the matter, saying, "Our focus is on ensuring customers receive prompt assistance."

Red Way alerted Lincoln Airport officials earlier this week that its service had run into trouble, according to the Lincoln Journal Star.

"The Lincoln Airport Authority Board is disappointed by the ultimate outcome of Red Way's service in Lincoln," Lincoln Airport Authority chairman John Olsson said in a statement.

Lincoln Airport did not respond to a request for comment by the time of publication.

Without Red Way, Lincoln Airport is down to only United Airlines for carriers that service the airport. United flies to its hubs in Chicago, Denver and Houston from Lincoln.

Related: This startup wants to sell flights from Lincoln, Nebraska. But can it survive?

Red Way first made headlines in March, receiving extensive coverage in local news outlets and airline industry blogs for betting big on Lincoln, one of many small U.S. cities that have fallen victim to declining commercial air service caused by the persistent pilot shortage and other operational pitfalls coming out of the coronavirus pandemic.

The startup did not operate flights but instead acted as a "virtual airline," handling bookings and sales on its website, while Florida-based charter operator Global Crossing Airlines operated the flights.

Red Way originally planned to sell flights to a total of seven U.S. cities, ranging from popular leisure destinations like Orlando and Las Vegas to other cities like Atlanta, Dallas and Minneapolis.

Currently, Red Way's website appears to only sell flights to Dallas, Las Vegas, Nashville and Orlando — with no service listed beyond Aug. 31.

Related: Flight delayed or canceled? Here are the best credit cards with trip delay reimbursement

Red Way's business model got off the ground thanks to a