BOS,LGA,andLAS bases to close in 2010

[BoeingBoy]

He's not one of the corporate raiders you're used to working under.

I wasn't talking about them. I had the pleasure of working under a few great airline people. Gordon Bethune ring a bell. He is undoubtedly the one most widely known for his accomplishments.

I guess most of the rest is where we'll have to agree to disagree.

Jim

 

[HPDriver]

I think it was beyond an excellent move - the swap of downsizing LGA to upgrade DCA.

Agreed

 

[HPDriver]

I wasn't talking about them. I had the pleasure of working under a few great airline people. Gordon Bethune ring a bell. He is undoubtedly the one most widely known for his accomplishments.

I guess most of the rest is where we'll have to agree to disagree.

Jim

I take it that was during his Piedmont years. And I'll agree with you that he was "great airline people."

 

[AirbusAVE]

I mean. People keep saying US Airways is running from competition in LGA and BOS but I look at the US Airways route map and I keep thinking to myself "How fierce is the competition from BOS to Bar Harbor/Augusta/Syracuse/Presque Isle/etc."

 

[BoeingBoy]

I take it that was during his Piedmont years. And I'll agree with you that he was "great airline people."

It was and he was. That's the type of people I meant by who I had to compare Parker to and to me Parker (and Kirby) come up short. Parker may have been at HP/US for 20 years, but how many of those years has he called the shots? I understood that he made it to the top too not long before 911. It was the CEO before him (Frank or something like that) that I meant when I said who you had to compare Parker to. Don't know and haven't heard much about CEO's before Frank (sic). From your vantage point I can see that you'd think Parker was a great CEO. From mine, not so much.

Jim

 

[HPDriver]

It was and he was. That's the type of people I meant by who I had to compare Parker to and to me Parker (and Kirby) come up short. Parker may have been at HP/US for 20 years, but how many of those years has he called the shots? I understood that he made it to the top too not long before 911. It was the CEO before him (Frank or something like that) that I meant when I said who you had to compare Parker to. Don't know and haven't heard much about CEO's before Frank (sic). From your vantage point I can see that you'd think Parker was a great CEO. From mine, not so much.

Jim

Parker knows he's not an operations guy and relied on Jeff McClelland for that side. Unfortunately, he passed as this merger was getting under way.

I firmly believe, had he lived, we wouldn't be in this mess of an integration and Bular would be doing other things.

 

[BoeingBoy]

I mean. People keep saying US Airways is running from competition in LGA and BOS but I look at the US Airways route map and I keep thinking to myself "How fierce is the competition from BOS to Bar Harbor/Augusta/Syracuse/Presque Isle/etc."

Of those you mentioned, I would guess that Syracuse would retain service from somewhere if not BOS. The others? All EAS I think although I haven't checked. That means those cities can't support air service without subsidies. It also means that there is no competition - only one carrier is subsidized to serve those cities. Finally, it means that there aren't many passengers connecting to other US flights.

Jim

 

[AirbusAVE]

Of those you mentioned, I would guess that Syracuse would retain service from somewhere if not BOS. The others? All EAS I think although I haven't checked. That means those cities can't support air service without subsidies. It also means that there is no competition - only one carrier is subsidized to serve those cities. Finally, it means that there aren't many passengers connecting to other US flights.

Jim

Exactley my points.


A) Them cities can't support air service anyway.

B.) People claim US Airways is running away from competition but obviously them routes have 0 competition.

C) You say there aren't that many passengers connecting. You are aware Phili is right down the road. And well, the purpose of Philadelphia is to connect and such. So, why route traffic through Boston (which means another base which increases your cost) when you could just route them through Philadelphia - Which I think that would be called consolidation. Wouldn't that be a smart thing to do? Yes, I think so.



Now, beyond them routes mentioned above at Boston, US Airways also serves: Philadelphia, Charlotte, Phoenix, Las Vegas, Washington DC, LGA, Indianapolis and Caribbean destinations... So, I'm guessing some of you guys want to see Boston stay opened as a base so cities that can't support air service (And that has 0 competition, and probably for a reason) can have air service to BOS? Because that makes a lot of sense



What cities at Boston will lose US Airways Mainline service? I'm curious...

 

[USA320Pilot]

I'm not too happy with the closure of the BOS, LAS, & LGA Crew bases, but here are some important fundamental factors to consider:

US Airways' current LGA terminal lease and maintenance expense is about $71.5 million per year. After the Shuttle move to the MAT and Mainline move to Gates 8, 9, & 10 the LGA lease expense will drop to $4.5 million per year.

The 124 LGA slots eing provided to Delta are all Express slots. Following the slot transfer US Airways' mainline operation will be larger than today.

30 LGA slots that Delta has agreed to take are an option. Delta has until the date of signing to confirm the acquisition of the 30 slots, which can be returned to US Airways.

The BOS-LGA A319 Shuttle has a 43 percent load factor, which is an average passenger count of 57 people per flight. The BOS-LGA E-190 Shuttle will better match capacity with demand, continue to provide US Airways with larger Shuttle aircraft than Delta in all 3 markets, and permit 4 A319s to be placed into hub mainline operations where they can generate greater revenue.

I have been told Andrew Norcella's Department considers DCA revenue almost bullet proof and DCA is a market with higher RASM than LGA.

Meanwhile, I recently saw a report from Next Generation Equity Research Analyst Dan McKenzie. Here are Mckenzie's comments:

McKenzie thinks (US Airways') executives left out an important factor behind the airline's bullishness: flight cutbacks at rival Southwest Airlines.

US Airways is able to more easily raise ticket prices at two key hubs, Phoenix and Philadelphia, he says, because Southwest is making significant capacity cuts there. The airline isn't growing this year for the first time because of the recession but it has been aggressively starting service in new markets such as Minneapolis, Boston and New York by cutting flights at existing airports.

In Phoenix, McKenzie said in a report Friday, Southwest is offering 10.4 percent fewer non-stop seats each week to cities where it overlaps with US Airways. In the first three months of next year, it will offer 6 percent fewer seats on the same basis, McKenzie said in a report. US Airways and Southwest dominate Sky Harbor International Airport, carrying nearly three out of four passengers.

The Southwest cutbacks on overlapping routes are even greater in Philadelphia, according to his research.

Southwest has 20 percent fewer non-stop seats per week out of Philadelphia to cities where it overlaps with US Airways. In the first quarter, the cut is 22 percent.

At both hubs, the Southwest cutbacks on non-stop routes where it competes with US Airways are significantly higher than overall flight cuts at the airport and US Airways' cutbacks.

"It's really Southwest's capacity cuts in US Airways' markets that give us the confidence that revenues are in fact improving for US Airways," he said in the report.

He said Tempe-based US Airways has one of the better competitive dynamics in the industry right now.

Finally, I like the idea of US Airways placing added service in markets Southwest vacates, especially when they're in hubs like Philadelphia and Phoenix. Separately, US Airways has announced it doesn't intend to pursue a codeshare agreement with Continental, which I find odd for two Star Alliance carriers unless there is another reason why.

Regards,

USA320Pilot

 

[HPDriver]

Southwest cutbacks, Southwest's capacity cuts


SWA ceding market? Giving up? Calling it quits like we are? Or are they adapting?


"He said Tempe-based US Airways has one of the better competitive dynamics in the industry right now."

Wow, and with a crappy CEO running the place. Who would have though?

What say you Jim?

 

[BoeingBoy]

Exactley my points.


A) Them cities can't support air service anyway.

B.) People claim US Airways is running away from competition but obviously them routes have 0 competition.

Wonder how many EAS markets are served under the US name from PHL, CLT, PHX? Your logic would ssuggest that US should reduce service in those hubs also.

C) You say there aren't that many passengers connecting. You are aware Phili is right down the road. And well, the purpose of Philadelphia is to connect and such. So, why route traffic through Boston (which means another base which increases your cost) when you could just route them through Philadelphia - Which I think that would be called consolidation. Wouldn't that be a smart thing to do? Yes, I think so.

All you have to do is convince the government to provide larger subsidies on those routes so that the EAS connection point can be further away. Otherwise the ESA service will either be dropped or Colgan will fly under another carrier's name - which is what happened in Bluefield and another city in West Virginia when the EAS carrier shifted service from CLT to IAD & United.

Now, beyond them routes mentioned above at Boston, US Airways also serves: Philadelphia, Charlotte, Phoenix, Las Vegas, Washington DC, LGA, Indianapolis and Caribbean destinations... So, I'm guessing some of you guys want to see Boston stay opened as a base so cities that can't support air service (And that has 0 competition, and probably for a reason) can have air service to BOS? Because that makes a lot of sense

I think the question is "Why can't US compete in two of the largest metropolition areas in the country." That'd be BOS and NYC. EAS cities are a straw man argument.

Jim

 

[hp_fa]

It was and he was. That's the type of people I meant by who I had to compare Parker to and to me Parker (and Kirby) come up short. Parker may have been at HP/US for 20 years, but how many of those years has he called the shots? I understood that he made it to the top too not long before 911. It was the CEO before him (Frank or something like that) that I meant when I said who you had to compare Parker to.

William Franke a/k/a The Anti-Christ a/k/a Satan

 

[AirbusAVE]

I think the question is "Why can't US compete in two of the largest metropolition areas in the country." That'd be BOS and NYC. EAS cities are a straw man argument.

How about "Why can't US Express compete against nobody in the 2 largest metro areas in the country."


As far as I know, US Airways will basically keep all of its Boston flying... Is Delta growing BOS or keeping it the same or shrinking?

 

[USA320Pilot]

Boeing Boy said: "I think the question is "Why can't US compete in two of the largest metropolition areas in the country." That'd be BOS and NYC. EAS cities are a straw man argument."

USA320Pilot comments: Two points. The slot transaction increases US Airways' LGA Mainline service and eliminates a lot of anti-trust objections if there is future consolidation or a corproate transaction. Separately, US Airways has announced it doesn't intend to pursue a codeshare agreement with Continental, which I find odd for two Star Alliance carriers unless there is another reason why.

Regards,

USA320Pilot

 

[cltbwimob]

Boeing Boy said: "I think the question is "Why can't US compete in two of the largest metropolition areas in the country." That'd be BOS and NYC. EAS cities are a straw man argument."

USA320Pilot comments: Two points. The slot transaction increases US Airways' LGA Mainline service and eliminates a lot of anti-trust objections if there is future consolidation or a corproate transaction. Separately, US Airways has announced it doesn't intend to pursue a codeshare agreement with Continental, which I find odd for two Star Alliance carriers unless there is another reason why.

Regards,

USA320Pilot

Can someone who knows a little more about these kinds of alliances explain to me why US and CO would not codeshare. Could it somehow be a roadblock if US and UA ever wanted to hook up, or is it, as many other people at other forums have said that US is the proverbial redheaded step child of Star and will be exiting to join another alliance like Oneworld. Or could they be grooming themselves for an AA/US merger?