It's a promotional fare. They don't expect to make money. They are trying to promote their business and generate interest. The money comes later when they raise their rates and already have a client base and name for themselves in the area. It's all about getting our attention and word of mouth promotion. Those rates won't last long.
I understand the idea but how much promotion does an airline need? This isn't like a new product. Everyone knows how airline service works. You buy your ticket, get on the plane, fly for a few hours, then get off. This is an industry where a $20 difference in fares between competing airlines is enough to change market share. When Continental is charging $300, I would think a $250 fare would fill the planes.
Those rates seemed to be good at least through August although they do charge slightly more for weekends. I'm not calling for them to raise fares. But with one market in the U.S. I'm a little apprehensive that they could simply declare it isn't going to work out and shut down U.S. operations with no notice and no refunds of your $120 paid. What are you going to be able to do about it?
Since nobody cares about their safety record, what about their customer service record? What is their on-time performance? What is their track record on cancellations? What about lost baggage? What is their history in handling passengers affected by such issues? In other words, who can really say they know anything about this company?
Debra, I can see a hotel offering a deal to an airline selling a package but why would they offer anything to an airline simply transporting passengers who are probably not staying with them?