"Low-cost competitors stepping up to challenge US Airways"

Tuesday, August 24, 2004

Low-cost competitors stepping up to challenge US Airways
By Mark Belko
The Pittsburgh (PA) Post-Gazette


Providing twin challenges to once- dominant US Airways, Independence Air
yesterday launched low-cost flights from Pittsburgh to Washington D.C. and
AirTran Airways announced plans to start nonstop service to Fort Lauderdale.

AirTran's plans yesterday for the once-a-week flight to Fort Lauderdale were
unveiled at the same time US Airways announced a major expansion of its own
at Fort Lauderdale.

AirTran's new Fort Lauderdale service, which starts Nov. 20 with one
Saturday flight a week, continues a comeback of sorts for the airline, which
curtailed service to New York, Philadelphia and Chicago from Pittsburgh in
2001 and 2002 in the face of tough competition from US Airways.

But over the last year, AirTran has added one daily flight to Orlando, Fla.,
a popular vacation destination, to supplement the one it started in 2003. It
also started a fifth daily flight to Atlanta. "They're looking at
opportunities and availing themselves to opportunities and we're very happy
to see them do that," Allegheny County Airport Authority Executive Director
Kent George said.

At one time, AirTran had considered making Pittsburgh a "focus city" in its
network with flights to New York, Philadelphia, Chicago, Atlanta, and other
destinations. But instead the airline dramatically scaled back service.

Kevin Healy, AirTran vice president of planning and sales, said the airline
may be interested in further expanding in Pittsburgh, but would not say by
how much or when.

Part of it may depend on what happens to US Airways.

"I think in the long run we will continue to grow in Pittsburgh. It's just a
question of when that is," Healy said.

Michael Boyd, a Colorado-based aviation consultant, does not believe AirTran
will ever return to the service levels it had from Pittsburgh only a few
years ago.However, Boyd does see the potential for airlines like AirTran,
Independence Air and other upstarts to give US Airways more of a battle for
travelers in its onetime fortress hub as the airline continues to cut
service.

US Airways has announced plans to reduce the number of daily flights from
Pittsburgh to 240 by the end of the year. That's down from 373 earlier this
year. George predicted yesterday that the airline ultimately could go as low
as 150 to 170 daily flights, if it remains in business.

US Airways spokesman David Castelveter said challenges from low-cost
carriers are one reason the airline needs to reduce costs more to survive. 

Though weakened, the airline apparently won't give up Pittsburgh without a
fight, however. It already has matched the $29 one-way fare being offered by
Independence Air to Washington's Dulles International Airport.

Independence's inaugural flight yesterday carried 49 passengers on a 50-seat
regional jet. The next two flights carried 23 and 20 passengers,
respectively.

Station Manager Jaime Lowther said the airline was "very satisfied" with the
response.


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