lowecur
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Big changes by Sept. Pitt will no longer be a hub, but UAIR says it will still be the largest carrier.
Charlotte will be reduced to a hub for their Carribean destinations, thus leaving PHL as the only viable hub within the system.
In order to accomodate these changes, UAIR will have to begin divesting itself of some of their assets in the next 60 days. They say they will be mostly a point to point carrier, which means that the express feeder system (except MidAtlantic), will either be sold or scrapped. They say they want to remain a presence in LGA, BOS, and Washington. I'm sure they mean in lieu of the sale of the shuttle. It will be interesting to see what JO does. I read where Skywest is also interested in the Shuttle, along with the usual cast of characters. Could help with the mark up. Lots of furloughs I'm afraid for UAIR, and probably jobs will be lost permanantly at express.
US Airways to revamp hub network
By MATTHEW BARAKAT
AP Business Writer
Published May 5, 2004
ARLINGTON, Va. -- US Airways plans to dramatically alter its hub-and-spoke network and will instead emulate the point-to-point network that has been successful for low-fare carriers, the company told labor groups Wednesday.
Company officials say the restructuring is necessary to keep the struggling airline afloat.
The company also plans to reduce and simplify its fare structures to compete with low-fare carriers. Those changes are already under way at the airline's Philadelphia hub, where the airline is bracing for competition starting this month from Southwest Airlines.
Under the plan, Philadelphia would remain a hub for the company's trans-Atlantic flights, and Charlotte would remain a hub for the company's profitable routes to the Caribbean.
The airline's third hub, currently located in Pittsburgh, would no longer be a hub but would instead be a "focus city" with fewer flights but would still be the largest carrier at that airport, the airline said in a taped message Wednesday for its employees.
The airline also plans to keep a strong presence in Boston, New York and Washington, taking advantage of its strength in key East Coast markets.
US Airways President Bruce Lakefield, in a letter to Pennsylvania Gov. Ed Rendell, said that "under the revised business plan, we see US Airways still being the major carrier in Pittsburgh, although not at the current level of activity."
He also said that changes in flight schedules would not occur until at least September and that the airline would not reduce its work force at Pittsburgh until then, either.
Pittsburgh had once been the airline's biggest hub. Before the Sept. 11 attacks, the company operated 542 flights a day out of Pittsburgh. That number has dropped to 372.
The airline also plans to reduce its fares and simplify the fare structure to compete with low-price carriers.
Last week the company unveiled its new "GoFares" structure in Philadelphia, with fares ranging from $29 to $499 one way. On some routes walkup fares dropped by 40 percent or more. The airline eliminated the requirement for a Saturday night stay to obtain the lowest fares.
Airline spokesman David Castelveter said the changes in Philadelphia will be the model for the rest of the network.
A spokesman for the pilots' union said the airline's plan is a solid one.
"We like what we see," said Jack Stephan, a spokesman for the US Airways unit of the Air Line Pilots Association, which had been very critical of the previous management team led by former President David Siegel, who resigned last month. "This may be the first time that US Airways is going to take part in something truly groundbreaking. It's going to be a change to the entire way we operate."
Stephan said the new plan dramatically increases the chances that the union will be willing to accept another round of wage concessions that the airline says it needs to avoid a second trip into bankruptcy.
Charlotte will be reduced to a hub for their Carribean destinations, thus leaving PHL as the only viable hub within the system.In order to accomodate these changes, UAIR will have to begin divesting itself of some of their assets in the next 60 days. They say they will be mostly a point to point carrier, which means that the express feeder system (except MidAtlantic), will either be sold or scrapped. They say they want to remain a presence in LGA, BOS, and Washington. I'm sure they mean in lieu of the sale of the shuttle. It will be interesting to see what JO does. I read where Skywest is also interested in the Shuttle, along with the usual cast of characters. Could help with the mark up. Lots of furloughs I'm afraid for UAIR, and probably jobs will be lost permanantly at express.
US Airways to revamp hub network
By MATTHEW BARAKAT
AP Business Writer
Published May 5, 2004
ARLINGTON, Va. -- US Airways plans to dramatically alter its hub-and-spoke network and will instead emulate the point-to-point network that has been successful for low-fare carriers, the company told labor groups Wednesday.
Company officials say the restructuring is necessary to keep the struggling airline afloat.
The company also plans to reduce and simplify its fare structures to compete with low-fare carriers. Those changes are already under way at the airline's Philadelphia hub, where the airline is bracing for competition starting this month from Southwest Airlines.
Under the plan, Philadelphia would remain a hub for the company's trans-Atlantic flights, and Charlotte would remain a hub for the company's profitable routes to the Caribbean.
The airline's third hub, currently located in Pittsburgh, would no longer be a hub but would instead be a "focus city" with fewer flights but would still be the largest carrier at that airport, the airline said in a taped message Wednesday for its employees.
The airline also plans to keep a strong presence in Boston, New York and Washington, taking advantage of its strength in key East Coast markets.
US Airways President Bruce Lakefield, in a letter to Pennsylvania Gov. Ed Rendell, said that "under the revised business plan, we see US Airways still being the major carrier in Pittsburgh, although not at the current level of activity."
He also said that changes in flight schedules would not occur until at least September and that the airline would not reduce its work force at Pittsburgh until then, either.
Pittsburgh had once been the airline's biggest hub. Before the Sept. 11 attacks, the company operated 542 flights a day out of Pittsburgh. That number has dropped to 372.
The airline also plans to reduce its fares and simplify the fare structure to compete with low-price carriers.
Last week the company unveiled its new "GoFares" structure in Philadelphia, with fares ranging from $29 to $499 one way. On some routes walkup fares dropped by 40 percent or more. The airline eliminated the requirement for a Saturday night stay to obtain the lowest fares.
Airline spokesman David Castelveter said the changes in Philadelphia will be the model for the rest of the network.
A spokesman for the pilots' union said the airline's plan is a solid one.
"We like what we see," said Jack Stephan, a spokesman for the US Airways unit of the Air Line Pilots Association, which had been very critical of the previous management team led by former President David Siegel, who resigned last month. "This may be the first time that US Airways is going to take part in something truly groundbreaking. It's going to be a change to the entire way we operate."
Stephan said the new plan dramatically increases the chances that the union will be willing to accept another round of wage concessions that the airline says it needs to avoid a second trip into bankruptcy.
