America West scratches out Columbus, Ohio, as hub
PHOENIX, Feb 10 (Reuters) - Low-cost air carrier America West Airlines [AWA.N] said on Monday it will stop using Columbus, Ohio, as one of its hubs, after competition grew in the area and an increase in cross-country flights reduced the need for passengers to make connections there.
America West, the No. 8 U.S. airline, said it had built up a hub in Ohio to help connect passengers from the south and central United States to destinations on the East Coast. Its bigger hubs are in Phoenix and Las Vegas.
But the airline said its Columbus operations are losing $25 million per year, and more passengers are now flying straight from western destinations to the East Coast.
With revenue hard to come by because of a travel pullback spurred by the weak economy, Phoenix-based America West, the main operating unit of American West Holdings Corp., [AWA.N] said restoring profits and eliminating unneeded hubs was crucial.
America West simply will not retain unprofitable portions of its operation in hopes that things might one day get better, the airline''s Chairman and Chief Executive, Douglas Parker, said in a statement.
The airline said its results in Columbus dropped off more precipitously during the economic slump than results at other locations.
FOUR FLIGHTS A DAY
America West now plans to bring activity in Columbus down to four flights a day from the current 49 departures, and said it will eliminate its service to New York City''s LaGuardia Airport as a result. It expected to take a $10 million to $15 million pretax charge for the current fiscal quarter as a result of the actions.
About 65 workers at the Columbus operations will stay on location, America West said, while about 335 employees will be offered transfers to other jobs at the airline. Those who choose not to transfer will get severance packages, the airline said.
The airline said it would phase out 12 regional jets based in Columbus from its fleet, and end its partnership with regional carrier Chautauqua Airlines, which has operated those jets for America West''s Express service.
Delta Air Lines [DAL.N] said on Monday that it will use those 12 airplanes, which seat 50 people, to build up its relationship with Chautauqua. By mid-June, the airplanes will transition over to fly regional service for Delta.
Chautauqua currently runs eight regional jets for Delta, but by the end of this year, it is expected to operate 34 regional jets for the No. 3 U.S. airline. Smaller, regional jets help large U.S. airlines reach more thinly-populated markets, broadening their route networks at a lower cost.
PHOENIX, Feb 10 (Reuters) - Low-cost air carrier America West Airlines [AWA.N] said on Monday it will stop using Columbus, Ohio, as one of its hubs, after competition grew in the area and an increase in cross-country flights reduced the need for passengers to make connections there.
America West, the No. 8 U.S. airline, said it had built up a hub in Ohio to help connect passengers from the south and central United States to destinations on the East Coast. Its bigger hubs are in Phoenix and Las Vegas.
But the airline said its Columbus operations are losing $25 million per year, and more passengers are now flying straight from western destinations to the East Coast.
With revenue hard to come by because of a travel pullback spurred by the weak economy, Phoenix-based America West, the main operating unit of American West Holdings Corp., [AWA.N] said restoring profits and eliminating unneeded hubs was crucial.
America West simply will not retain unprofitable portions of its operation in hopes that things might one day get better, the airline''s Chairman and Chief Executive, Douglas Parker, said in a statement.
The airline said its results in Columbus dropped off more precipitously during the economic slump than results at other locations.
FOUR FLIGHTS A DAY
America West now plans to bring activity in Columbus down to four flights a day from the current 49 departures, and said it will eliminate its service to New York City''s LaGuardia Airport as a result. It expected to take a $10 million to $15 million pretax charge for the current fiscal quarter as a result of the actions.
About 65 workers at the Columbus operations will stay on location, America West said, while about 335 employees will be offered transfers to other jobs at the airline. Those who choose not to transfer will get severance packages, the airline said.
The airline said it would phase out 12 regional jets based in Columbus from its fleet, and end its partnership with regional carrier Chautauqua Airlines, which has operated those jets for America West''s Express service.
Delta Air Lines [DAL.N] said on Monday that it will use those 12 airplanes, which seat 50 people, to build up its relationship with Chautauqua. By mid-June, the airplanes will transition over to fly regional service for Delta.
Chautauqua currently runs eight regional jets for Delta, but by the end of this year, it is expected to operate 34 regional jets for the No. 3 U.S. airline. Smaller, regional jets help large U.S. airlines reach more thinly-populated markets, broadening their route networks at a lower cost.