US Express to returns service to IPT?

FM2436

Veteran
Jan 8, 2003
747
11
WHAAAAAT!!! I don't understand the following???

http://airlineinfo.com/ost10/ost103008.htm...Essential-44867

October 28, 2008

Re: Piedmont Airlines Will Maintain Service

I am writing to inform you that Piedmont Airlines - d/b/a US Airways Express - has decided to withdraw its Ninety Day Notice of June 25, 2008, and maintain service of three daily weekday roundtrips between Williamsport, Pennsylvania, and Philadelphia, Pennsylvania, with a reduced weekend schedule.

When Piedmont initially notified the Department of its intent to cease service to Williamsport, oil prices were testing new record high prices on an almost daily basis. However, in light of the rapid decline in fuel prices - reduced by more than half since the summer peak - and Williamsport's support of Piedmont/US Airways' service. Piedmont has decided to maintain its service.

Counsel: Howard Kass


Sorry Williamsport, but I believe this is a real mistake by US Airways and/or Piedmont. Piedmont's 2nd proposal for an EAS award between PHL and IPT offered 14RTs at a total cost of $3,475,645. Passenger revenuse were estaibled at $1,363,092 and asked for $2,295,481 in EAS subsidy.

Do I understand correctly that because oil prices have now dropped Piedmont no longer wants to discontimue service at IPT and now claims it can maintain 3 weekday RT's with a reduced weekend schedule and does not require any EAS subsidy? Piedmont must believe it can generate such a profit that it can maintain 15 weekday RTs with a reduced weekend schedule without any need for EAS subsity???

Good luck Piedmont. Now your going to need it. Just my opinion, but I think Piedmont should have got out when the opportunity was available.