Competitors add flights in US Airways' territory

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

 



Competitors add flights in US Airways' territory
By Barbara De Lollis and Barbara Hansen, USA TODAY

While US Airways is cutting some flights in an attempt to regain its=20
financial strength, fliers along some of its key routes are getting more=20
choices. This month, Delta Air Lines launches non-stop flights to eight new=
=20
cities out of Washington Reagan National, an airport US Airways dominates.=
=20
American Airlines has started hourly shuttle service from National to New=20
York and New York to Boston. Low-fare carriers America West and AirTran=20
have also been beefing up in US Airways' territories. "US Airways is=20
getting attacked from all sides," says airline consultant Mo Garfinkle.=20
"It's going to be a tough road for those guys." "Other airlines are=20
circling like vultures" around US Airways' route network, says Ray Neidl,=20
an airline analyst at Blaylock & Partners.

Since it filed for bankruptcy-court protection in August, US Airways has=20
cut flights by about 13% but kept service to all but one of its cities.=20
Last week, it said it will eliminate about 100 weekday flights from its=20
January schedule of about 1,500 total. US Airways says it is addressing the=
=20
competition. It's fortifying its key hubs, offering incentives on its=20
Washington-New York-Boston shuttle flights, earning top rankings in=20
customer-service measures such as on-time performance, and moving ahead=20
with its partnership with United Airlines, spokesman David Castelveter=20
says. Besides, he says, "Most every carrier is in a weakened state.=20
Everybody is losing a significant amount of money."

The biggest battles:

Delta. "We want to be your No. 1 out of Washington, D.C.," Delta declares=20
in new radio ads in the Washington area. This month, Delta is adding=20
non-stops from National to Charleston, S.C.; Columbus, Ohio; Huntsville,=20
Ala.; and Jacksonville, Orlando, Fort Lauderdale, Tampa and West Palm=20
Beach, Fla. It's increasing service to Atlanta, Cincinnati and New York=20
JFK.  US Airways CEO David Siegel has publicly denounced the strategy. But=
=20
Delta says US Airways shouldn't take it personally. Delta is building on a=
=20
strategy of using small jets to travel to more small and midsize cities,=20
especially on the East Coast, spokesman John Kennedy says. Given US=20
Airways' East Coast franchise, Delta is bound to run into them, he says.=20
Delta also is making strides in the battle for shuttle passengers.=20
President Fred Reid told analysts last month that Delta gained 4% of US=20
Airways' customers on the Northeast shuttle the prior three months.

American. The biggest airline entered the East Coast shuttle market in=20
September with service from New York to Boston, then added Washington-New=20
York LaGuardia flights last month. American has 10 flights each way, vs. 15=
=20
to 17 each way for US Airways and Delta.  American spokeswoman Lisa Bailey=
=20
wouldn't comment on the shuttle's performance except to say, "Passenger=20
response has been good." Since American entered the market, the airlines=20
have been offering discounted fares and bonus frequent-flier miles.=20
American says it's been looking at the East Coast high-frequency markets=20
for years because it had less of a presence there than other carriers.

Low-fare carriers America West and AirTran. Two weeks ago, America West=20
launched two daily non-stops each way between Phoenix and Pittsburgh, one=20
of US Airways' hubs. Before that, US Airways was the only carrier providing=
=20
the service, with three daily flights each way. America West says the route=
=20
is one of six to be launched in markets where it thinks its new fare=20
structure =97 no Saturday night stay requirement and lower price =97 will be=
=20
popular.  AirTran in January will add flights between Orlando and=20
Pittsburgh. Airline consultant Stan Pace of Bain Consulting says US Airways=
=20
can't ignore the new competition, which has the potential to jeopardize its=
=20
long-term strategy. "If they're successful with what they're doing, these=20
carriers can pre-empt US Airways from expanding and building back its route=
=20
structure after bankruptcy." But Neidl says the tough economy means=20
"competitors probably can't take full advantage of US Airways' weakness."=20
'Not as loyal as I used to be'

Some US Airways customers are looking around at new choices. Software=20
developer David Lannes of Richmond, Va., says that despite having top-tier=
=20
frequent-flier status with US Airways, "I'm not as loyal as I used to be."=
=20
US Airways angered him when it led the move among majors to crack down on=20
non-refundable tickets. Initially, it said it would ban frequent fliers=20
from applying non-refundable ticket miles to top-tier flier status. Though=
=20
it retreated on the mileage ban, Lannes says he's open to flying different=
=20
carriers. Instead of flying US Airways directly to Milwaukee recently, he=20
flew Midwest Express to its Chicago hub, then drove to Milwaukee. The drive=
=20
took about an hour, but he saved more than $400. "More and more customers I=
=20
talk to on planes have the same feeling. They're saying, 'I'm going to=20
start looking at other options,' " Lannes says. "They're cutting schedules,=
=20
getting rid of (free) standby, things that made it attractive."

But Terry Jones, a Columbus, Ohio, health care consultant, says Delta would=
=20
have to give him "something sensational" to prompt him to give up the perks=
=20
that come with being a top-level US Airways frequent flier. "I am heavily=20
invested in US Airways' perks and frequent-traveler programs, and it will=20
be hard to switch," says Jones, who has taken 150 flights already this=20
year. Carl Howard, a Columbus-based partner in an East Coast restaurant=20
chain, concurs. He says he's too used to flying first class to switch.=20
"Sometimes I panic when I fly in coach," he says.

The owner of Roger's Trinbago Site:
Roj (Roger James)
***************************************************
escape email mailto:ejames@escape.ca
Trinbago site: http://www.tntisland.com
CBC Website
http://www.tntisland.com/caribbeanbrassconnection/
The Trinbago Site of the Week:
(I95.5FM) http://www.i955fm.com
(Radio Station I95.5FM)
courtesy of Roj Trinbago Website & TnT Web Directory
Roj's Trinbago Website: http://www.tntisland.com
TnT Web Directory: http://search.co.tt
*********************************************************

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