"US Airways trims flight schedule 2 weeks after launching Fort Lauderdale minihub"

Tuesday, March 1, 2005

US Airways trims flight schedule 2 weeks after launching Fort Lauderdale
minihub
By Niala Boodhoo 
The South Florida Sun-Sentinel


Two weeks after US Airways launched a Fort Lauderdale minihub to Latin
America and the Caribbean, the airline said it will cancel three of its
direct Latin American routes and cut several domestic flights.

The changes, which the bankrupt airline blamed on a "weak revenue
environment," mean that come May the airline will have a quarter fewer
flights than originally planned for the minihub to Latin America and the
Caribbean.

While the move makes good business sense for the airline, which hopes to
emerge from bankruptcy by the end of June, it sends a bad signal to
customers, said one industry insider, Stuart Klaskin, a partner with KKC
Consulting in Coral Gables.

"The rapid market entry and market retreat can do years worth of damage,"
said Klaskin, adding that airlines usually need a lengthy presence in some
markets to establish credibility.

The Arlington, Va.-based carrier said it will cut its daily flights on May 8
from Fort Lauderdale to San Salvador, Panama City and San Juan. The airline
will also cut one direct Philadelphia-Fort Lauderdale flight, its
Newark-Fort Lauderdale flight and end its Saturday-only flights to
Providence.

Direct flights to Baltimore-Washington International and Hartford will shift
to Saturday-only. From Palm Beach International Airport, one direct flight
to Charlotte, N.C., will go, leaving six others.

A Fort Lauderdale airport official expressed disappointment with the
airline's decisions to cut the flights.

"We understand given the financial condition of the airline and the industry
itself that they have to make adjustments," said spokesman Jim Reynolds.

US Airways is operating under its second bankruptcy filing in two years.

Two weeks ago, US Airways officials were in Fort Lauderdale to launch its
newest minihub, part of the overall reorganization for the airline. The plan
had included 44 daily departures to 20 destinations, including 11 East Coast
cities, eight Latin American and Caribbean countries and Puerto Rico. In May
it will have 34 daily departures to 15 destinations, two of which will be
Saturday-only.

"This was a difficult decision to make, but [it] preserves the larger
project," of the Fort Lauderdale expansion, said US Airways spokeswoman Amy
Kudwa.

Kudwa said any passengers holding tickets for these flights would be
accommodated on other airlines or receive a refund.


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