US Airways reports more passengers

700UW

Corn Field
Nov 11, 2003
37,637
19,488
NC
US Airways reports more passengers
By Donna Hogan, Tribune
February 7, 2007
Tempe-based US Airways flew a few more planes but a lot more passengers in January than a year earlier.


The company reported Tuesday that its fleet had 6.65 million available seat miles in January, less than 1 percent more than in January 2006.

But passengers filled up 4.87 million of those seat miles, nearly 5 percent more than a year earlier.

That meant the planes flew an average 73.3 percent full, up from 70.5 percent full last year.

Airline spokesman Phil Gee attributed the big boost in business to, “getting the rightsized aircraft on the right routes.â€

The added capacity in January is a reversal of the carrier’s recent cutback trend.

Since the 2005 merger of America West Airlines and US Airways, the Tempe-based carrier has handed back 60 airplanes to manufacturers. “Now that’s leveling off,†Gee said. And the company pulled America West planes out of service — a few at a time — to repaint them in US Airways colors.

Now the fleet is nearly fully operational, Gee said. The carrier has added a few new routes recently, but don’t look for any large expansion. Mostly, new planes on order will be replacements for older planes getting near retirement age, he said.

That means US Airways will have to wait a while before it can replicate the major international expansion it hoped to get by picking up bankrupt Delta Air Lines. The bid failed when Delta creditors refused to get on board before US Airways CEO Doug Parker’s Feb. 1 deadline.

New bigger planes with the capacity to fly from Phoenix to European countries are on order but not expected to arrive before 2011, and possibly later, Gee said.

Meanwhile, the company has announced plans to start service from Philadelphia to Zurich, Brussels and Athens in May, and likely will add two or three new European destinations a year for the next few years, Gee said.

As for the continued integration of America West and US Airways operations, “We’re almost done,†Gee said.

The reservations systems are pegged to be combined March 3, and the single operating certificate should be in hand before the end of the second quarter, Gee said.

The company also plans to consolidate some functions in a new operations center and will announce whether it will build that in the Valley later this month, Gee said.

Ongoing negotiations continue with several labor groups to forge joint contracts, but neither unions or management are claiming much progress.

US Airways officials are not saying whether they are looking elsewhere for a new merger partner.

“We have plenty to do on our plate,†Gee said, dodging that lingering question.
Contact Donna Hogan by email, or phone (480) 970-2338
 
....Airline spokesman Phil Gee attributed the big boost in business to, “getting the rightsized aircraft on the right routes.â€￾....
New bigger planes with the capacity to fly from Phoenix to European countries are on order but not expected to arrive before 2011, and possibly later, Gee said.
....

Either Gee had "inside", private, previously non-disclosed information, or his dates are off. He may be referring to the statements made by Parker at least a year ago and prior to the 350-350XWB fiasco and delays. At that time, Parker answered an Analyst ? about PHX-Europe and responded that Phoenix would have to wait for the A350, which was then scheduled for delivery in 2011/2012. It (350XWB) is now scheduled for 2014. On the other hand the 332s, which could easily do PHX-Europe are scheduled for late 2009/2010. Further, I believe Parker is still negotiating and has not yet even signed a contract for the 20 - 350XWBs, 10 of which can be converted to 332s (original contract). I base this assumption partially on his comments last week that US is still waiting for Airbus to contratually commit to 350XWB performance. I can't see US sitting on their hands until 2014 before making a move on PHX-Europe, or in the event Gee is correct and NO "new bigger" aircraft are being delivered until 2011 (i.e., the 332s have been re-negotiated and delayed), any other non-757 range expansion. If they do, I'd bet they'll be left behind in CO and DLs dust. Of course all this is purely an academic exercise, since a merger of some sort is probably eminent well before 2011.
 
I'm not sure that this will be an either/or situation. Take a look at the Finnair deal. Seems to me like it's exactly the model that US should follow.

IIRC, the Finnair deal (at least what's public about it) calls for that carrier to receive its A350XWBs for the same price agreed to in its original A350 contract. This should be substantially lower than the ultimate price of the XWB. US is in a good position to make the same deal. Also, a short-term agreement for some A330s, beginning in 2011, should span the gap caused by a 2014-2015 EIS for the A350XWB.

If US makes this type of a deal, it can expand int'l routes in 2009 with the new A330s that are already scheduled for delivery and continue that expansion seamlessly for several years (from PHL and PHX), ultimately replacing the 767s and swapping out some the stop-gap A330s when the A350XWBs arrive.
 
"We are almost done" with the current merger???? That is news to me, I see no single contract nor operating certificate ... aside from reservations, which is not done either, it seems all we have accomplished is painting some aircraft.....