US Airways backtracks on service cuts

[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

 



US Airways backtracks on service cuts  =

 =


Friday September 6, 12:21 PM EDT =


(Rewrites first paragraph, adds details, background, paragraphs 2, 5-8))

NEW YORK, Sept 6 (Reuters) - Bankrupt US Airways Group Inc. (UAWGQ) on Fr=
iday said it was backtracking on plans to cut down on services it offers =
customers with nonrefundable tickets in response to harsh criticism from =
business travelers.

US Airways, the sixth-largest U.S. airline, in late August said it was cu=
tting services such as frequent flyer benefits and standby flights to bud=
get travelers as part of an overall cost-cutting plan.

The rollback of these policies will let travelers with nonrefundable tick=
ets, which are generally cheaper and do not allow for travel flexibility,=
 fly standby for a $100 fee. The change, set to start on Jan. 1, matches =
a policy set by rival American Airlines, a unit of AMR Corp. (AMR) =


  =


US Airways also said customers with nonrefundable tickets will be able ag=
ain to count miles flown with those tickets toward premium levels in thei=
r frequent flyer accounts.

"We heard from many customers about our changes, and we are responding in=
 a way that should please most of them," said B. Ben Baldanza, US Airways=
 senior vice president of marketing and planning.

The airline did not change its new policy of restricting passengers who b=
uy nonrefundable tickets for many routes in North America and Europe from=
 using the value of an unused ticket as a credit toward the purchase of a=
nother one.

Sunken travel demand and thinning corporate travel budgets have put airli=
nes around the globe through the wringer since the Sept. 11 attacks on th=
e United States. The leading U.S. air carriers are slashing costs to offs=
et pallid revenue, cutting everything from extra utensils to workers' sal=
aries.

The Arlington, Virginia-based airline has struggled for months to extract=
 wage cuts and other sacrifices from its employees. Cost reductions are a=
 crucial component of the company's push to restructure its business and =
get final approval for a government-backed loan. =



=A92002 Reuters Limited. =


Roger
EWROPS

[Index of Archives]         [NTSB]     [NASA KSC]     [Yosemite]     [Steve's Art]     [Deep Creek Hot Springs]     [NTSB]     [STB]     [Share Photos]     [Yosemite Campsites]