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Cutting Flights And Jobs, US Airways Narrows Network
By Jay Boehmer
OCTOBER 28, 2009 --
US Airways is realigning its U.S. network to focus almost exclusively on service to and from its Charlotte, Philadelphia and Phoenix hubs and three other cities, which by the end of 2010 will represent 99 percent of the airline's capacity, down from about 93 percent today. The carrier today also said it would abandon a number of markets, lay off about 1,000 workers and suspend indefinitely its right to serve Beijing.
In addition to its three hubs, US Airways today said it would preserve or bolster its presence at Boston Logan and Ronald Reagan Washington National airports and on shuttle markets from New York's LaGuardia Airport.
Chairman and CEO Doug Parker in a memo today said, "By concentrating on our strengths we will be better positioned to return US Airways to profitability."
As part of the realignment that will take shape over the next year, US Airways will reduce Las Vegas service from 64 to 36 daily departures in the next four months, while closing operations in Colorado Springs, Colo., and Wichita, Kan.
US Airways also pointed to "weakness in transatlantic revenue" in its plan to cease service from Philadelphia to Birmingham, U.K.; London Gatwick; Milan, Italy; Shannon, Ireland; and Stockholm, Sweden. The carrier, however, said it would begin offering year-round services to Brussels and Zurich, which currently are seasonal.
US Airways also said it would return to the U.S. Department of Transportation its authority to serve Beijing from Philadelphia, though the carrier said it could reapply for the service authority.
"As we evaluated our international routes in Philadelphia, we made the necessary decisions to pull down capacity that simply isn't profitable in today's economic environment," Parker said, "However, we remain firmly committed to exploring additional opportunities as the economy slowly recovers, including reevaluating our proposed China service in the future."
As part of the moves, US Airways said it would eliminate about 1,000 airport, pilot and flight attendant positions in the first half of next year, while closing crew bases in Boston, LaGuardia and Las Vegas.
US Airways said it remains committed to service—and even some growth—in Charlotte, Philadelphia and Washington National, and those other focus markets.
Though US Airways is scaling back Philadelphia service to "some softer markets," the carrier said it has grown into "markets where demand is strong," including the recent launch of Tel Aviv service and expansion of Oslo service. The carrier said it plans to add service from Charlotte to Honolulu and Rio de Janeiro in December.
Citing its still-pending slot swap with Delta Air Lines (BTNonline, Aug. 12), US Airways also recommitted to growth at Washington National, which includes the addition of eight new markets, including Birmingham, Ala., Islip, N.Y., Ithaca, N.Y., Little Rock, Ark., Myrtle Beach, S.C., Pensacola, Fla., Savannah, Ga. and Tallahassee, Fla.
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