Yo, Adrian! SW is comin' to Philly

[Hagar17]

Could be it for US Air...........

 

[Hagar17]

Might help if I paste the story, too.

Southwest to challenge US Airways at Philadelphia
Dateline: Wednesday October 29, 2003

Southwest Airlines added to the challenges facing US Airways Group yesterday, announcing that it will establish a new base at Philadelphia next May, using four gates and five new 737-700s to operate up to 14 daily flights initially to a mix of short- and long-haul destinations.

Fares and routes will be announced in Dec., Chairman Herb Kelleher said during a teleconference, adding that Southwest has looked at Philadelphia off and on over the past 10 years but previously had been dissuaded by lack of gate space and airside capacity constraints. Following 9/11, however, the airport experienced a "diminution of air services" that made the carrier's eventual entrance possible, he explained.
Philadelphia is US Airways' second-largest hub in terms of mainline departures and its largest international hub. According to JP Morgan analyst Jamie Baker, the carrier controls an estimated 50% of the Philadelphia market measured by domestic dollars, inclusive of Regionals, and the city accounts for an estimated 25% of its system revenue, "making it the largest component of its network."

In a report released yesterday, Baker stated, "For [US Airways], Philadelphia exceeds Pittsburgh's revenue production by a factor of two and LaGuardia by a factor of five, adjusted for intra-hub flying." The carrier already is being pressured there by AirTran, which operates to six markets from the city, while Southwest has a history of attacking US Airways' markets, having driven it from California and from Baltimore/Washington International Airport approximately 100 mi. to the south. BWI is now one of Southwest's largest bases. Kelleher expects minimal "self-diversion" of BWI passengers to Philadelphia.

Yesterday, US Airways President and CEO David Siegel agreed that the news was "not positive." Speaking to the Aero Club of Washington, he said his carrier has two alternatives: "To stand and fight or cut and run," adding, "I would prefer to stand and fight." However, US Airways needs a more competitive cost structure in order to compete vigorously against the interloper, he observed.

Responding to rumors that the airline is considering a second bankruptcy filing to achieve lower costs, Siegel said, "We have no plans to file for Chapter 11." However, he reminded attendees that upon emerging from bankruptcy last March, the company said it had not completed its restructuring process. It reported a third-quarter loss of $90 million.--Perry Flint

 

[MLBWINGBORN]

In other words..

Its time to cut and run...

Mike