- Banned
- #1
City could lose nonstops, gain low-cost carriers
TED REED & TONY MECIA
Staff Writers
After two decades as a major airline's hub, Charlotte/Douglas International may be facing a future as a different sort of airport: one with fewer flights, fewer destinations and lower fares.
The possible loss of US Airways would hurt the city's corporate recruiting efforts. Instead of flying nonstop to 115 cities, business travelers would generally have to change planes. Charlotte's nonstop service to 18 Caribbean destinations could be lost, as could nonstop links to three major cities in Europe.
But the city would suddenly be more attractive to low-fare carriers, at least two of which are already eyeing new service at Charlotte/Douglas. AirTran Airways has told city officials it might fly from Charlotte to Atlanta, New York and elsewhere. America West Airlines joined the Charlotte Chamber this month.
More low-fare carriers would mean fliers could stop driving to other cities to avoid Charlotte's fares, which are the nation's highest.
US Airways, which has 5,700 workers and its largest hub in Charlotte, may well survive another Chapter 11 bankruptcy filing, which some analysts expect in mid-September. But filing for bankruptcy reorganization would mean a judge and a creditors committee would gain influence in deciding the airline's future.
Both the airline's chairman and a consultant for the pilots union have said that a Chapter 11 filing could lead to a liquidation.
In interviews this week with airline officials, industry experts and city leaders about a possible US Airways shutdown, a new picture of Charlotte/Douglas emerges, one that's dramatically different from today's airport.
• The number of nonstop destinations would fall steeply. Raleigh-Durham International Airport, which serves a metropolitan area similar in size to Charlotte, has nonstop flights to 39 cities, down from 60 when it was an American Airlines hub.
• Low-fare carrier AirTran would begin flying to its Atlanta hub, and could serve other cities, including New York if it could increase its presence at New York's congested La Guardia Airport, Charlotte/Douglas Aviation Director Jerry Orr said. Orr said he'd met with AirTran officials in recent months.
• America West Airlines, which has hubs in Phoenix and Las Vegas, joined the Charlotte Chamber this month. Spokeswoman Janice Monahan said America West is growing rapidly and seeking opportunities, but wouldn't say whether flights to Charlotte are planned.
• German airline Lufthansa might end its daily Charlotte-Munich flight, Orr said, potentially leaving Charlotte with no nonstop flights to Europe. A Lufthansa spokeswoman declined to speculate. About a third of the airline's Charlotte passengers connect to US Airways flights.
• The five established hub airlines could increase capacity from Charlotte into their hubs, either by adding flights or using larger airplanes. The big winner could be Delta Air Lines, which already operates eight daily flights between Charlotte and its Atlanta hub -- the likely choice for Charlotte travelers forced to make connections.
• Besides AirTran and America West, other low-fare carriers might be interested in Charlotte. ATA already flies to Chicago's Midway Airport, and Independence Air will begin flights to Washington Dulles International Oct. 1. Frontier Airlines, JetBlue Airlines and Southwest Airlines are possibilities, but none would specify plans in Observer interviews.
US Airways' competitors are surely examining how to respond if the company shuts down, says Dan Gibbs, an airport consultant for Southlake, Texas-based Sabre Airline Solutions. "When you take a big entity out of the mix, every planning group in the industry all of a sudden is dealing with contingencies and opportunities," he said.
City business leaders worry that the elimination of many nonstop flights would hinder their ability to recruit headquarters and sales offices, which often depend on easy access to small and midsized cities.
"It will clearly, initially, slow down maybe some of the people moving here," said Charlotte real estate developer Johnny Harris, who served on US Airways' board of directors in the 1990s.
Other Charlotte leaders say they are in a tough position. They say they don't want to be out recruiting and giving the impression that they lack faith in the city's longtime partner.
"We're pulling for US Airways to be successful, but we're always trying to recruit more airlines and more flights to the airport," said Al McAulay, chairman of the Charlotte Chamber's aviation committee.
McAulay said the committee works with Orr to maintain contacts with a variety of airlines, but he wouldn't say whether the effort to recruit carriers has been enhanced given US Airways' recent difficulties.
Orr said he has talked with officials of Southwest, the nation's biggest and most successful low-fare carrier, but not recently.
He says low-cost carriers and existing airlines know the airport's prices and know the city has gates available for use at a moment's notice.
While major airlines would no doubt continue to fly to their hubs from Charlotte, it is less clear what airlines might serve key airports where US Airways is the only carrier.
US Airways operates the only flights from Charlotte to La Guardia and Washington Reagan National, both congested airports where the Federal Aviation Administration allocates takeoff and landing times, known as "slots."
Were US Airways to cease to operate, its slots could be sold to another carrier, which might use some of them to fly to Charlotte.
Aviation consultant Mike Boyd, as well as Gibbs, says American and Delta might seek the slots and fly to Charlotte, probably with regional jets generally seating 50 to 70 passengers. But younger, low-cost airlines such as AirTran and JetBlue, which have more access to cash than their older competitors, might also try to acquire the slots.
"AirTran is in La Guardia and eager to expand and is looking for places where there's not too much competition," said consultant Mort Beyer, who also named Boston and Florida as possible AirTran destinations.
When US Airways' MetroJet subsidiary pulled out of Baltimore in 2001, AirTran quickly stepped in with nonstop flights to five cities, including Boston and Orlando, Fla. An AirTran spokeswoman declined to comment.
Many analysts think Southwest would also fly to Charlotte. At a minimum, Gibbs said, Southwest would fly between Charlotte and Philadelphia, where it is growing since starting service in May.
But Southwest spokeswoman Linda Rutherford said dozens of cities are trying to lure the airline. The departure of a hub carrier "wouldn't necessarily mean it's a slam dunk" for Southwest to step in, she said.
If US Airways leaves ...
• The number of nonstop destinations would fall steeply.
• Low-fare carriers such as AirTran and America West could increase their presence, driving down fares.
• Charlotte might be without a nonstop flight to Europe.
• Charlotte's ability to recruit company headquarters could be hurt.
TED REED & TONY MECIA
Staff Writers
After two decades as a major airline's hub, Charlotte/Douglas International may be facing a future as a different sort of airport: one with fewer flights, fewer destinations and lower fares.
The possible loss of US Airways would hurt the city's corporate recruiting efforts. Instead of flying nonstop to 115 cities, business travelers would generally have to change planes. Charlotte's nonstop service to 18 Caribbean destinations could be lost, as could nonstop links to three major cities in Europe.
But the city would suddenly be more attractive to low-fare carriers, at least two of which are already eyeing new service at Charlotte/Douglas. AirTran Airways has told city officials it might fly from Charlotte to Atlanta, New York and elsewhere. America West Airlines joined the Charlotte Chamber this month.
More low-fare carriers would mean fliers could stop driving to other cities to avoid Charlotte's fares, which are the nation's highest.
US Airways, which has 5,700 workers and its largest hub in Charlotte, may well survive another Chapter 11 bankruptcy filing, which some analysts expect in mid-September. But filing for bankruptcy reorganization would mean a judge and a creditors committee would gain influence in deciding the airline's future.
Both the airline's chairman and a consultant for the pilots union have said that a Chapter 11 filing could lead to a liquidation.
In interviews this week with airline officials, industry experts and city leaders about a possible US Airways shutdown, a new picture of Charlotte/Douglas emerges, one that's dramatically different from today's airport.
• The number of nonstop destinations would fall steeply. Raleigh-Durham International Airport, which serves a metropolitan area similar in size to Charlotte, has nonstop flights to 39 cities, down from 60 when it was an American Airlines hub.
• Low-fare carrier AirTran would begin flying to its Atlanta hub, and could serve other cities, including New York if it could increase its presence at New York's congested La Guardia Airport, Charlotte/Douglas Aviation Director Jerry Orr said. Orr said he'd met with AirTran officials in recent months.
• America West Airlines, which has hubs in Phoenix and Las Vegas, joined the Charlotte Chamber this month. Spokeswoman Janice Monahan said America West is growing rapidly and seeking opportunities, but wouldn't say whether flights to Charlotte are planned.
• German airline Lufthansa might end its daily Charlotte-Munich flight, Orr said, potentially leaving Charlotte with no nonstop flights to Europe. A Lufthansa spokeswoman declined to speculate. About a third of the airline's Charlotte passengers connect to US Airways flights.
• The five established hub airlines could increase capacity from Charlotte into their hubs, either by adding flights or using larger airplanes. The big winner could be Delta Air Lines, which already operates eight daily flights between Charlotte and its Atlanta hub -- the likely choice for Charlotte travelers forced to make connections.
• Besides AirTran and America West, other low-fare carriers might be interested in Charlotte. ATA already flies to Chicago's Midway Airport, and Independence Air will begin flights to Washington Dulles International Oct. 1. Frontier Airlines, JetBlue Airlines and Southwest Airlines are possibilities, but none would specify plans in Observer interviews.
US Airways' competitors are surely examining how to respond if the company shuts down, says Dan Gibbs, an airport consultant for Southlake, Texas-based Sabre Airline Solutions. "When you take a big entity out of the mix, every planning group in the industry all of a sudden is dealing with contingencies and opportunities," he said.
City business leaders worry that the elimination of many nonstop flights would hinder their ability to recruit headquarters and sales offices, which often depend on easy access to small and midsized cities.
"It will clearly, initially, slow down maybe some of the people moving here," said Charlotte real estate developer Johnny Harris, who served on US Airways' board of directors in the 1990s.
Other Charlotte leaders say they are in a tough position. They say they don't want to be out recruiting and giving the impression that they lack faith in the city's longtime partner.
"We're pulling for US Airways to be successful, but we're always trying to recruit more airlines and more flights to the airport," said Al McAulay, chairman of the Charlotte Chamber's aviation committee.
McAulay said the committee works with Orr to maintain contacts with a variety of airlines, but he wouldn't say whether the effort to recruit carriers has been enhanced given US Airways' recent difficulties.
Orr said he has talked with officials of Southwest, the nation's biggest and most successful low-fare carrier, but not recently.
He says low-cost carriers and existing airlines know the airport's prices and know the city has gates available for use at a moment's notice.
While major airlines would no doubt continue to fly to their hubs from Charlotte, it is less clear what airlines might serve key airports where US Airways is the only carrier.
US Airways operates the only flights from Charlotte to La Guardia and Washington Reagan National, both congested airports where the Federal Aviation Administration allocates takeoff and landing times, known as "slots."
Were US Airways to cease to operate, its slots could be sold to another carrier, which might use some of them to fly to Charlotte.
Aviation consultant Mike Boyd, as well as Gibbs, says American and Delta might seek the slots and fly to Charlotte, probably with regional jets generally seating 50 to 70 passengers. But younger, low-cost airlines such as AirTran and JetBlue, which have more access to cash than their older competitors, might also try to acquire the slots.
"AirTran is in La Guardia and eager to expand and is looking for places where there's not too much competition," said consultant Mort Beyer, who also named Boston and Florida as possible AirTran destinations.
When US Airways' MetroJet subsidiary pulled out of Baltimore in 2001, AirTran quickly stepped in with nonstop flights to five cities, including Boston and Orlando, Fla. An AirTran spokeswoman declined to comment.
Many analysts think Southwest would also fly to Charlotte. At a minimum, Gibbs said, Southwest would fly between Charlotte and Philadelphia, where it is growing since starting service in May.
But Southwest spokeswoman Linda Rutherford said dozens of cities are trying to lure the airline. The departure of a hub carrier "wouldn't necessarily mean it's a slam dunk" for Southwest to step in, she said.
If US Airways leaves ...
• The number of nonstop destinations would fall steeply.
• Low-fare carriers such as AirTran and America West could increase their presence, driving down fares.
• Charlotte might be without a nonstop flight to Europe.
• Charlotte's ability to recruit company headquarters could be hurt.
