Project Roam ---(MANY Merged threads)

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Pittsburgh Selected as Hub and Headquarters For New, Low-Fare Airline

Tuesday October 14, 11:30 am ET

Plans call for company to employ 500 full-time workers next year and 2,100 within five years


PITTSBURGH, Oct. 14 /PRNewswire/ -- Officials from a new, low-fare airline, presently operating under the working name "Project Roam," today announced the details of a plan that calls for the company to be headquartered in Pittsburgh and within five years serve 39 major destinations with non-stop service at prices as low as $49 for nearby destinations such as Philadelphia and Washington, D.C., and $99 for cross-country flights to cities such as Las Vegas and Dallas. As projected, the company will hire within five years 2,100 employees, including 500 full-time workers next year.



"Southwestern Pennsylvania represents the best opportunity of any region in the nation for the formation of a new, value-driven airline," said Project Roam Chairman Edward Beauvais, who founded America West Airlines more than 20 years ago and served as the company's chairman and CEO for 11 years. "Pittsburgh International Airport is a world-class facility and Pittsburgh is a world-class city. But for too long its residents, as well as the more than three million people in the region and portions of Ohio and West Virginia who rely on this airport for their traveling needs, have been denied the benefits of competition. Our plan is to change that, as well this market's expectations of the flying experience."

"It is with great pride and excitement that I stand here today with so many distinguished members of this community," said Travis Tanner, President and CEO of Project Roam. "We plan to earn the respect and trust of the business community and the flying public here in Pittsburgh and throughout the region by providing professional and efficient airline service. Our discount pricing affords customers the opportunity to travel to major destinations throughout the nation for about the same price a family would spend to see a movie. In fact, since each passenger seat on our aircraft will be equipped with personal entertainment centers that include live television and pay-per- view movies, families can watch new releases on the way to vacation."

Joining Beauvais and Tanner, who is a 30-year veteran of the travel and leisure industry, were Allegheny County Chief Executive Jim Roddey, former chairman of the Allegheny Conference and Carnegie Mellon University Charles Queenan, Jr.; former chairman of Alcoa and Treasury Secretary of the United States Paul O'Neil; former chairman of PNC Tom O'Brien and Citizens Bank President Ralph Papa.

"Project Roam's commitment to locate its corporate headquarters in Pittsburgh is testament to the viability of this market and Pittsburgh International Airport," said Roddey. "I am impressed with the company's business plan and encouraged by the experience and energy of its leadership team, who have demonstrated their relentless determination to make Project Roam a successful venture and, equally important, their desire to become members of this community."

Project Roam's Business Plan calls for the company to be operational by June 2004, when it expects to offer up to five daily flights to each of the following destinations: Boston, Mass.; New York, N.Y.; Washington, D.C.; Chicago, Ill.; Los Angeles, Calif.; Orlando, Fla. and other destinations in Florida. The entire aircraft fleet will consist of brand-new, Boeing 737-700 "Next Generation" airliners, each configured with 12 business class and 114 coach seats. The company plans to maintain a fleet of eight planes next year and expects to have over 120 daily flights within five years, when the airline plans to serve 39 major destinations.

While a key component of Project Roam's strategy is to offer fares that are generally 30 percent to 70 percent lower than what is available in its targeted markets, the airline will offer superior service and accommodations. Each flight will include a unique in-flight beverage service, consisting of complimentary wines and microbrews, all of which can be enjoyed by passengers in the comforts of leather seats -- each of which will offer personal entertainment centers, including live television, digital music, pay-per-view movies and electronic games. Passengers will have the ability to select their seat assignment on every flight and could be upgraded to business class for an additional fee of only $25 to $75, depending on the destination.

Next year, the company plans to hire 500 full-time workers at an average salary of $31,500. Within five years, the company plans to maintain a workforce of 2,100.

"Ed Beauvais and his team may be new to Pittsburgh, but they have quickly discovered what our region has to offer, including a strategic location and a highly skilled and dedicated work force," said Queenan. "I am thrilled the company has selected Pittsburgh to headquarter its operations and look forward to their arrival into this community."

Citizens Bank President Ralph Papa echoed Queenan's sentiments. "As president of a company that two years ago invested more than two billion dollars into this community when Citizens Bank purchased the retail operations of Mellon Financial Group, it gives me great pleasure to see a company plan to make such a significant investment in our region."



Oh my, are the folks in PIT so desperate that they will buy this guy's snake oil?

Interesting that West Pac is not mentioned, nor Ed's work to try to bring a low fair airline to Utica, or the fact that he is a complete joke in the industry :D
 
New Lowfare Carrier in PIT

Well...doesn't this sound like a grand plan? Lowfare carriers have avoided PIT for the most part because of two reasons. The smallest reason is that it is expensive (but I suppose that is always negotiable). The largest - and what should be blatently obvious - reason that LCC's have avoided PIT is that there is no O&D demand. The fact that carriers won't even spoke in PIT makes me wonder why on earth anyone would decide to HUB in PIT for a LCC??! That's the same as trying to operate the major HUB out of MCI/LAS/RDU/SMF/or any other low local-market city. All of these have failed in the past, and if PIT makes it off the starting blocks (which won't suprise me if it doesn't), then I don't give this carrier much time. They might as well merge with the new Pan Am and fly out of mid-america or GYY.
 
I think if you ask Holly Hegeman at her airline news website you could get some good stuff (www.planebusiness.com) if I recall, she knows a lot about his experiences at Western Pacific, and there are several articles she wrote about Ed that you should be able to find on Google.

here is a good article: http://www.planebusiness.com/tscolumns/ts042297.html


Ed Beauvais was last seen working on an airline in upstate NY, it was Northern Airlines, (www.flynorthern.com). He is a joke in the industry, he damn near destroyed AWA by buying 4 ancient 747's and flying them to Hawaii and Nagoya Japan, as well as expanding too rapidly. He started WestPac and did the same thing, expanding out of COS at a breakneck rate, then moving the hub to DEN and attempting to merge with Frontier.

This airline will never take off, anyone that would give Ed capital is nuts!
 
I would be careful with anything Holly Hegeman has to say. Lots of axes to grind there. She's facing at least one lawsuit - that I know of - for some of the seemingly libelous comments she's written - and for whatever reason, she's had it in for Beauvais for years.

Folks currently at America West, from Doug Parker on down, don't seem to share her views on Beauvais. I've heard nothing but positive comments about Beauvais from them. Like anyone who has actually done anything in this business, Beauvais has made some enemies, but it seems to me that he's made a lot more friends along the way. As for his ability to launch an airline - AWA is still around isn't it? I believe it's the only airline to achieve "major" status since the start of deregulation. As for WestPac, there are a lot of folks who believe that if Beauvais didn't encounter some health problems and hadn't been run out of there the airline had a better chance of survival. He was not the one who decided to move the airline from Colorado Springs to Denver and OVERSPEND ON EVERYTHING in the process.

Personally, I don't think this is a crazy idea. I hope it works. If it does, it will be good for PIT to finally see some real competition.
 
You are right about the DEN move. But I did leave out the millions that went to his 2 sons as "consultants" at WestPac when they were bleeding cash. The exhorbitant fees that went to his wife for interior design on the Phoenix Clubs, and choosing the artwork for the HQ.

Yeah, Ed is a nice guy, does a good job at starting an airline, not an easy thing to do, but he is responsible for 2 chapter 11's at airlines that he ran.

Would YOU loan him 50 million to start an airline? :blink:
 
Starting an airline is not an easy thing to do. We agree fully. Beauvais is the only one to start an airline since de-regulation that has achieved status as a "major" - AWA. No doubt, there were many mistakes made along the way, but fact is - the odds are long on accomplishing what he's accomplished.

Would I give him millions to start an airline - yes. The key word is start. There are only a few people in this country who can pull this off - David Neeleman is the only other one that comes to mind right now. Like Neeleman, Beauvais needs someone else to keep this thing on the straight and narrow. Neeleman has Dave Barger. Without Barger, Neeleman might be flying used 747s somewhere, too! This time around, Beauvais has Travis Tanner to serve as Pres/CEO. Seems to me that this is exactly the type of set-up that's been successful for JetBlue.

In any case, I think it's good news and much prefer to be an optimist. If this is well funded (needs more than $50M IMHO), I believe it has a real chance to be successful in an environment where the major carriers don't pack the same retaliatory punch that they had a few years ago.
 
I don't think this venture will be successful. USAIR is starting up it's own answer to the LCC. PIT based, MidAtlantic Airways (USAIR EXPRESS with F/C seating), will prove itself worthy in battle. It's what Delta, (Comair), has been doing for some time---making money for mainline. This "Project Roam" will fail. That's my two cents......However, you should look into handling their PR. :rolleyes:
 
Hey! What's wrong w/ PIT? Just because US is contemplating a quick evacuation doesn't mean the place can't be a successful hub. US couldn't make a go of it at BWI, but Southwest and AirTran don't seem have much trouble. JFK was all but abandoned for domestic flying in NYC, but JetBlue seems to have found a way to make it successful. I think a well-financed start-up with a diciplined business plan can make a go of it a lot of markets. It wouldn't surprise me to see a couple more LCCs announced in the next year in places where incumbent carriers believe they can't make a profit.
 
Flying Titan said:
Hey! What's wrong w/ PIT? Just because US is contemplating a quick evacuation doesn't mean the place can't be a successful hub. US couldn't make a go of it at BWI, but Southwest and AirTran don't seem have much trouble. JFK was all but abandoned for domestic flying in NYC, but JetBlue seems to have found a way to make it successful. I think a well-financed start-up with a diciplined business plan can make a go of it a lot of markets. It wouldn't surprise me to see a couple more LCCs announced in the next year in places where incumbent carriers believe they can't make a profit.
It's not a personal attack on PIT. BWI had the potential to be profitable because it serves the Baltimore and DC metro areas...both have very large local markets. JFK serves NYC and western Long Island...the largest of US local markets. In both cases, the airlines that were unsuccessfully serving BWI and JFK were taking the wrong approach, not choosing the incorrect city. With PIT, however, it does not have a large enough LOCAL market to sustain a hub. Most of the mix going through PIT will be connecting traffic and why not over-fly PIT if it isn't the true market? A LCC needs an extremely high local market (NYC, ATL) if it wants to have a single hub. The reason is that they need higher LFs and cannot profit with planes that are 1/2 empty or are 1/2 connecting traffic. PIT will definitely be one or both of those cases.

And I agree...it won't suprise me to see a couple more LCCs announced that hub in obscure (designated "unprofitable") cities. That doesn't mean they will be successful. Everyone tries MCI and that will probably be one of the next. Then there is always COS, FTW, GYY, DET, RDU, PIE, and countless others that are often discussed, sometimes tried, and never successful. Not enough local demand. Good bye Vanguard, good bye Midway (2), good bye Pan Am (2), good bye...
 
Anyone have any info on Ed Beauvais new airline in Pittsburgh he's working on there........maybe Scam Investor Air........Just curious if anyone has any new info on this
 
Well from first hand experience. I worked for WP for a little over 2 years.....from the beginning....this sounds like a follow up scam to some sort....Undoubtebly Ed is a great guy, but he will have he and his friends hands in the bucket with ways to make $$$$$ and big ones for them.....everyone else will lose out.......I fully believe that and would bet some good cash on it.....I'll bet it but won't invest it with Project Roam cuz my return will be better.
 
Surely, I'm not the first to suggest FUDAir? AirFud? JetFud? or just F.U.D.?

But more seriously, Northeast?

Of course the press coverage states that the principles refer to it as Project Roam.
 
My guess is that his slush fund has run dry and he needs more spending money. I was at America West in the pre-bankruptcy years and all he would say is "trust me" and that ended up costing me money and he got a golden parachute. Don't give him a dime! :down: