USA320Pilot said:
The reduced PIT schedule is driving up O&D traffic, it's simply supply and demand. Furthermore, reduced ticket pricing due to GoFares and other initiatives; as well as LCC expansion is stimulating traffic.
Let's be real: LCC expansion is forcing US to do the "trailing GoFares" routine. Further, US is pretty dumb--if you look at all of the markets LUV is publishing a fare in, US is dumb enough to try to maintain BlowFares (
tm) until 4-May, instead of going there immediately with the hopes of heading off LUV's entrance.
O&D traffic is up, and that's
before LUV enters. Lousy market, that PIT (noting that the O&D is still greater than one of the two remaining hubs).
The US Airways issue is that PIT has a relatively high passenger processing fee that is now over $10 per passenger. For comparison purposes, CLT is about $1.50 per passenger.
Now let's remind ourselves why: the PIT elders were dumb enough to build the terminal that US demanded (with the threat of leaving) in the early 1990s--basically to suit at an huge cost. US then broke it's leases in the 11th hour of Chapter 11 Volume I, with no warning, and contrary to what they had previously told county and state officials. (and for their effort, they now have LUV at both ends of the state).
Another issue is that PIT would be excess to a corporate combination with a company like United, Northwest, or even America West.
Actually, PIT could be to the east coast what CMH could not for America West--or could have been, before LUV came to town.
Not that it matters. US chunks will be farmed out to the highest bidder--there won't be a merger.
US Airways effectively moved its PIT flying to FLL where the international yields are better. The challenge: fuel prices are eating away at a lot of the savings and forcing the company to further adjust its business plan.
Whoa. It was so profitable that they had to yank Puerto Rico, San Salvador, and Panama less than two weeks after starting service, due to the routes being unprofitable.
Bruce Ashby said so. You agreed.
I live and commute from Pittsburgh and do not like the fact the hub/crew base has been downsized, but I understand the reasoning and economics after sitting in a corporate presentation on the decision.
US leaves PIT, moves planes to FLL, pulls routes in operation for less than a month. PIT's O&D is up YOY. LUV (whose management is much, more more able to run a profitable enterprise) decides that the market is one they should enter. Oh, and
turned down marketing subsidies.
Perhaps you might want to consider that lesson in reason and economics a case of "what not to do."
