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Mesa Air 737 unit may launch at PIT
Wage system meeting some resistance from pilots
Tuesday, May 25, 2004
By Dan Fitzpatrick and Mark Belko, Pittsburgh Post-Gazette
Preparing for life after US Airways, Phoenix commuter carrier Mesa Air is considering the launch of a new low-cost airline that would have a hub at Pittsburgh International Airport and start by flying up to 10 Boeing 737 jets.
But the proposal, a contingency designed to fill in any gaps left by a defunct US Airways, is meeting some resistance from Mesa's pilots, who do not like the wage system being proposed by Mesa Chief Executive Officer Jonathan Ornstein.
Mesa is asking its captains, who fly only smaller regional jets and turboprops, to steer the larger 737s at rates 20 percent higher than what they make currently at Mesa, which picks up US Airways' passengers in smaller cities under a code-sharing arrangement with the Arlington, Va.-based carrier. Ornstein also is asking first officers to fly the 737s at rates similar to those of their other colleagues at Mesa.
In a letter sent to Ornstein Friday, leaders of Mesa's pilots union asked Ornstein to submit his proposal formally to the union's negotiating committee, which Ornstein has not done. In a letter to its members the same day, the union leaders argued that the 737 pay rates were "out of line" with industry averages and said they had decided not to act on Mesa's offer "due to its unofficial nature."
Ornstein declined comment about the specifics of the proposal or the pilots' response. But, he added, "I do think there continues to be opportunities to serve markets in Pittsburgh with a low-cost airline, but that vision needs to be shared by all of our constituencies in order for us to move forward."
If the pilots do not agree to the new operation, which would still be a part of Mesa while perhaps operating under a different name, Ornstein could still partner with another airline on the 737 venture or another start-up carrier.
Ultimately, the size and focus of Mesa's new operation depend on the health of US Airways.
The fact that Mesa is considering the 737 plan at all has a lot to do with its reliance on Pittsburgh's dominant carrier, which accounts for 40 percent to 45 percent of Mesa's revenue. Mesa, currently profitable, is taking a defensive stance to protect itself in case US Airways collapses, and it has raised more than $200 million over the last 18 months.
"We continue to review contingency plans based on any potential outcome at US Airways," Ornstein said.
Much could be decided this summer.
If US Airways is not able to win $800 million in concessions from its unions by September, it may have to sell off assets or file for bankruptcy again.
In that case, Mesa would pursue its new low-cost 737 airline-within-an-airline more aggressively.
But even if US Airways survives and follows through on its plan to strip Pittsburgh of its hub status, Mesa could still fill the local void with new 737s since Pittsburgh International is likely to lose flights and nonstop destinations as US Airways concentrates more on East Coast flying.
Since 9/11, US Airways has cut 170 daily flights in Pittsburgh and has been cutting nonstop destinations -- the most recent was Columbia, S.C., in March. Other nonstop destinations dropped since last fall include Bangor, Maine; Lansing, Mich; and Orange County, Calif. Come June 6, US Airways will be eliminating another nonstop flight to Trenton, N.J.
Allegheny County Airport Authority officials are bracing for more. As US Airways phases out hub operations and makes Pittsburgh a "focus city," they expect daily flights could drop from 379 to as low as 102, based on operations at other US Airways focus cities, such as Boston, New York and Washington, D.C.
The news is not all bad for local US Airways fliers.
The carrier is planning to restore more than 50 Saturday evening flights at Pittsburgh International on June 12, although only temporarily. The airline intends to drop the flights again Aug. 21, near the end of the busy summer travel season.
US Airways cut the flights, which depart between 8 p.m. and 10 p.m., in January because of low demand. However, it is expecting traffic to increase enough with summer travel to bring them back for a short time, spokesman David Castelveter said.
Wage system meeting some resistance from pilots
Tuesday, May 25, 2004
By Dan Fitzpatrick and Mark Belko, Pittsburgh Post-Gazette
Preparing for life after US Airways, Phoenix commuter carrier Mesa Air is considering the launch of a new low-cost airline that would have a hub at Pittsburgh International Airport and start by flying up to 10 Boeing 737 jets.
But the proposal, a contingency designed to fill in any gaps left by a defunct US Airways, is meeting some resistance from Mesa's pilots, who do not like the wage system being proposed by Mesa Chief Executive Officer Jonathan Ornstein.
Mesa is asking its captains, who fly only smaller regional jets and turboprops, to steer the larger 737s at rates 20 percent higher than what they make currently at Mesa, which picks up US Airways' passengers in smaller cities under a code-sharing arrangement with the Arlington, Va.-based carrier. Ornstein also is asking first officers to fly the 737s at rates similar to those of their other colleagues at Mesa.
In a letter sent to Ornstein Friday, leaders of Mesa's pilots union asked Ornstein to submit his proposal formally to the union's negotiating committee, which Ornstein has not done. In a letter to its members the same day, the union leaders argued that the 737 pay rates were "out of line" with industry averages and said they had decided not to act on Mesa's offer "due to its unofficial nature."
Ornstein declined comment about the specifics of the proposal or the pilots' response. But, he added, "I do think there continues to be opportunities to serve markets in Pittsburgh with a low-cost airline, but that vision needs to be shared by all of our constituencies in order for us to move forward."
If the pilots do not agree to the new operation, which would still be a part of Mesa while perhaps operating under a different name, Ornstein could still partner with another airline on the 737 venture or another start-up carrier.
Ultimately, the size and focus of Mesa's new operation depend on the health of US Airways.
The fact that Mesa is considering the 737 plan at all has a lot to do with its reliance on Pittsburgh's dominant carrier, which accounts for 40 percent to 45 percent of Mesa's revenue. Mesa, currently profitable, is taking a defensive stance to protect itself in case US Airways collapses, and it has raised more than $200 million over the last 18 months.
"We continue to review contingency plans based on any potential outcome at US Airways," Ornstein said.
Much could be decided this summer.
If US Airways is not able to win $800 million in concessions from its unions by September, it may have to sell off assets or file for bankruptcy again.
In that case, Mesa would pursue its new low-cost 737 airline-within-an-airline more aggressively.
But even if US Airways survives and follows through on its plan to strip Pittsburgh of its hub status, Mesa could still fill the local void with new 737s since Pittsburgh International is likely to lose flights and nonstop destinations as US Airways concentrates more on East Coast flying.
Since 9/11, US Airways has cut 170 daily flights in Pittsburgh and has been cutting nonstop destinations -- the most recent was Columbia, S.C., in March. Other nonstop destinations dropped since last fall include Bangor, Maine; Lansing, Mich; and Orange County, Calif. Come June 6, US Airways will be eliminating another nonstop flight to Trenton, N.J.
Allegheny County Airport Authority officials are bracing for more. As US Airways phases out hub operations and makes Pittsburgh a "focus city," they expect daily flights could drop from 379 to as low as 102, based on operations at other US Airways focus cities, such as Boston, New York and Washington, D.C.
The news is not all bad for local US Airways fliers.
The carrier is planning to restore more than 50 Saturday evening flights at Pittsburgh International on June 12, although only temporarily. The airline intends to drop the flights again Aug. 21, near the end of the busy summer travel season.
US Airways cut the flights, which depart between 8 p.m. and 10 p.m., in January because of low demand. However, it is expecting traffic to increase enough with summer travel to bring them back for a short time, spokesman David Castelveter said.
