From PIT Tribune-Review.
US Airways' local service unlikely to grow
By Rick Stouffer
TRIBUNE-REVIEW
Friday, July 27, 2007
Pittsburgh's size and attractiveness to low-cost airlines are two strikes against Pittsburgh International Airport winning additional US Airways flights, a top airline executive said Thursday.
US Airways President Scott Kirby said the Pittsburgh market is important to US Airways, as it selected the region as the site for its new $25 million to-be-built operations center. But when it comes to flights in and out of Pittsburgh International, airline passengers shouldn't expect service downsizing to reverse within the foreseeable future.
"We continue to try to make Pittsburgh work for us," said Kirby, during a conference call to discuss US Airways' second-quarter financial results. "If we can sustain the service level there we will, but we won't operate unprofitable routes."
This month, the airline further slashed its departures to 127 per day from 148 earlier this year. US Airways' departures from Pittsburgh have declined from 245 in November 2004, shortly after the airline's second bankruptcy filing, and almost 400 in fall 2003. The airline operated more than 500 flights a day in summer 2001 out of Pittsburgh, when the airport still served as a hub.
Kirby said US Airways has no further plans to pull back service in and out of Pittsburgh International, adding that many of the cuts this summer are due to its Express (commuter) partners having a difficult time finding qualified pilots.
"Pittsburgh has great public officials, including (Allegheny County Airport Authority Executive Director) Kent George, but Pittsburgh is a relatively small city, and it's very attractive to low-cost carriers," Kirby said. "Those two things don't make it attractive to a hub carrier."
"That information has been conveyed to Kent in the past," Airport Authority spokeswoman JoAnn Jenny said. "It's been the strategy of the Authority not to depend on the hub carrier, but to go out and recruit low-cost carriers. It's our job to defend and represent the area."
George on Wednesday said that the influx of low-cost carriers, including Southwest Airlines, JetBlue Airways and AirTran Airways, was the reason average fares have significantly dropped at Pittsburgh International, and why passenger volumes are increasing.
Increased expenses related to its operations improvement plan and aircraft maintenance weighed on US Airways Group Inc.'s bottom line as the air carrier yesterday reported a 13.6 percent drop in net income for the three months ended June 30.
The Tempe, Ariz.-based company reported net income of $263 million, or $2.77 a share, down from $305 million, or $3.25 a share, in the year-earlier period.
Aircraft maintenance expenses rose to $170 million from $153 million, associated with the return of leased aircraft and engine overhaul timing, along with increased investment in aircraft operations, the company said.
Revenues for the quarter slightly dropped, to $3.15 billion from $3.17 billion one year ago. Passenger revenue from mainline operations slightly increased, while Express or commuter and cargo revenues fell.
"This was our sixth consecutive quarter of profitability, showing the value of the merger," said US Airways Group CEO Doug Parker. "We are flying right now as good as any airline, and the revenue environment going into the third quarter looks rather encouraging."
Kirby added that he expects much improved revenues in the third quarter, with significant growth in business demand.
Parker said US Airways on June 30 had about $3.5 billion in cash on hand. Asked if those funds could be used for an acquisition, the US Airway's CEO said no.
"It's more important to us to have more cash on hand than anyone else, given the industry's current situation," Parker said.
US Airways' local service unlikely to grow
By Rick Stouffer
TRIBUNE-REVIEW
Friday, July 27, 2007
Pittsburgh's size and attractiveness to low-cost airlines are two strikes against Pittsburgh International Airport winning additional US Airways flights, a top airline executive said Thursday.
US Airways President Scott Kirby said the Pittsburgh market is important to US Airways, as it selected the region as the site for its new $25 million to-be-built operations center. But when it comes to flights in and out of Pittsburgh International, airline passengers shouldn't expect service downsizing to reverse within the foreseeable future.
"We continue to try to make Pittsburgh work for us," said Kirby, during a conference call to discuss US Airways' second-quarter financial results. "If we can sustain the service level there we will, but we won't operate unprofitable routes."
This month, the airline further slashed its departures to 127 per day from 148 earlier this year. US Airways' departures from Pittsburgh have declined from 245 in November 2004, shortly after the airline's second bankruptcy filing, and almost 400 in fall 2003. The airline operated more than 500 flights a day in summer 2001 out of Pittsburgh, when the airport still served as a hub.
Kirby said US Airways has no further plans to pull back service in and out of Pittsburgh International, adding that many of the cuts this summer are due to its Express (commuter) partners having a difficult time finding qualified pilots.
"Pittsburgh has great public officials, including (Allegheny County Airport Authority Executive Director) Kent George, but Pittsburgh is a relatively small city, and it's very attractive to low-cost carriers," Kirby said. "Those two things don't make it attractive to a hub carrier."
"That information has been conveyed to Kent in the past," Airport Authority spokeswoman JoAnn Jenny said. "It's been the strategy of the Authority not to depend on the hub carrier, but to go out and recruit low-cost carriers. It's our job to defend and represent the area."
George on Wednesday said that the influx of low-cost carriers, including Southwest Airlines, JetBlue Airways and AirTran Airways, was the reason average fares have significantly dropped at Pittsburgh International, and why passenger volumes are increasing.
Increased expenses related to its operations improvement plan and aircraft maintenance weighed on US Airways Group Inc.'s bottom line as the air carrier yesterday reported a 13.6 percent drop in net income for the three months ended June 30.
The Tempe, Ariz.-based company reported net income of $263 million, or $2.77 a share, down from $305 million, or $3.25 a share, in the year-earlier period.
Aircraft maintenance expenses rose to $170 million from $153 million, associated with the return of leased aircraft and engine overhaul timing, along with increased investment in aircraft operations, the company said.
Revenues for the quarter slightly dropped, to $3.15 billion from $3.17 billion one year ago. Passenger revenue from mainline operations slightly increased, while Express or commuter and cargo revenues fell.
"This was our sixth consecutive quarter of profitability, showing the value of the merger," said US Airways Group CEO Doug Parker. "We are flying right now as good as any airline, and the revenue environment going into the third quarter looks rather encouraging."
Kirby added that he expects much improved revenues in the third quarter, with significant growth in business demand.
Parker said US Airways on June 30 had about $3.5 billion in cash on hand. Asked if those funds could be used for an acquisition, the US Airway's CEO said no.
"It's more important to us to have more cash on hand than anyone else, given the industry's current situation," Parker said.
Lohan MAY have a drinking problem <HA> more like the Trainwreck fell far off the rail. And THAT'S Entertainment! Any chance her and Dougie share stories and Starbucks at the Betty Ford Clinic?! 
