Lindy
Topic Author
Posts: 4722
Joined: Wed May 19, 1999 10:42 pm

USAirways New Hub

Thu Jul 13, 2000 1:15 pm

Do you think that USAirways should open new hub on the west coast and start service to Asia???
What city would be perfect for this kind of operations? Portland? Seatle? San Francisco? Los Angeles?

Any comments are welcome

Regards,
Rafal
BWIADCA - Nikon D100
 
Ryefly
Posts: 1324
Joined: Wed Jun 21, 2000 7:56 am

RE: USAirways New Hub

Thu Jul 13, 2000 1:36 pm

Well if the merger was to go thorough they wouldn't have to worry about it. Although if it fails, I think its highly uinlikely to see US Airways open a hub on the West coast. I could see them moving to the Mid-West in the far future to say St. Louis if TWA were to ever go out of business in order to have non stop service over the Pacific. But thats about as far west I can see them going for a hub. They still known to have short to medium flight routes.
 
ContinentalEWR
Posts: 3619
Joined: Wed May 24, 2000 2:50 am

RE: USAirways New Hub

Thu Jul 13, 2000 10:36 pm

I don't see US Airways opening a west coast hub if they remain an independent carrier. They don't have the aircraft or sufficient feed to develop a significant
presence in the West and they do not have the widebody transports required
for Transpacific flights. It will also be difficult for them to obtain slots at Asian
airports as this market is highly regulated.

US Airways tried to build a west coast presence (as US Air) back in 1989 when
it acquired PSA and shed the entire operation. It wouldn't work. They would be
spreading themselves too thin.

ContinentalEWR
 
D L X
Posts: 11663
Joined: Thu May 27, 1999 3:30 am

RE: USAirways New Hub

Fri Jul 14, 2000 1:54 am

Hmm, sounds like ContinentalEWR forgot about that 430 plane order... International slots are hard to get anywhere, not just Asia, but airlines find a way when they want or need to.

But why start a west coast hub for the purpose of serving Asia? Why not just serve Asia from the east? (That's where most of the US population lives anyways...)

Also, one last note, just like all domestic airlines, USAir in 1989 was a completely different airline than US Airways today. History does not necessarily apply.
 
ContinentalEWR
Posts: 3619
Joined: Wed May 24, 2000 2:50 am

RE: USAirways New Hub

Fri Jul 14, 2000 2:05 am

DLX,

The 430 plane order includes options which might or might not be exercised
and over half the order is intended to replace existing equipment in the fleet
such as 737-200's, early model 737-300's, MD80's, DC9-30's, remaining
727's, and possibly the Fokker 100's. It's not like they are getting 430 new
planes on top of the 400 or so they now have. Fleet renewal, not fleet
growth is their strategy.

Second, US Airways is not exactly different now than in 1989. It has yet to
fully integrate work rules into a common operating platform. The old style
Piedmont and PSA methods are still being used, which is one of the main
reasons US Airways has the highest operating structure in the industry,
aside from its route structure and short-, medium- hauls, and lack of any
fleet commonality. It still ranks at or near the bottom of customer service
rankings, has a high number of complaints vs. other US carriers, and is
once again struggling for profits after an 18 month profit streak.

I agree it is a better airline overall but some of the fundamental problems
of the airline have yet to be fixed.

ContinentalEWR

 
D L X
Posts: 11663
Joined: Thu May 27, 1999 3:30 am

ContinentalEWR

Fri Jul 14, 2000 2:34 am

Well, your bias is obvious, but that's okay.  

All labor groups at US are under new contracts with new work rules in line with the rest of the industry. The management has changed, the fleet has changed, many new people have been hired; this is not the same airline. Sorry.

Also, the fleet plan is slated for 435 jets by 2001. That only includes an order of 124 Airbus narrowbodies, and 10 330s. The 733s and 734s and even the F100s are in the fleet plan. It is the 732s, DC9s, and MD80s that were to be replaced by the 120 Airbus.

Strategies are never set in stone. (How many times has Metrojet adapted to a new environment in its 3 years?) If US wanted to set up a new hub, they have favorable options with Airbus to get a slew of planes to fill that hub, and they have the option to slow the retirements of the jets in their fleet to make the hub a reality. So, if they wanted it to, it WOULD be getting 430 new planes on top of the 400 they have now.
 
PVDFlier
Posts: 56
Joined: Wed Jul 12, 2000 12:21 am

RE: ContinentalEWR

Fri Jul 14, 2000 3:34 am


Here's a gentle reminder to ContinentalEWR. Please don't forget what a total mess Continental was between 1985 and 1995. Afrer merging Frontier, PeopleExpress, New York Air, Eastern into one, Continental had lousy service, a cumbersome route network, a total lack of fleet commonality and unsettled labor contracts. The Denver hub was phased-out completely, because CO just didn't know hot to make it work. EWR was - and remains - a passenger nightmare.

It took more than a decade for CO to straighten-up and fly right. USAirways has improved by leaps and bounds since 1997, (USAir-out, USAirways-in) under the leadership of CEO Wolf.

Today's USAirways is a true success story. Continental is a success as well, but only after years of poor performance and red ink.
 
DELTA777
Posts: 637
Joined: Tue Mar 07, 2000 6:34 am

RE: ContinentalEWR

Fri Jul 14, 2000 10:08 am

Do you think if US Airways was to open a hub in say San Fransico that they could keep it goin? they just closed down all of their US Airways Express Flights in California, and it seems that they are shutting down alot of flights...Are they coloing flights and restructuring for the merger?

d e l t a 7 7 7
 
ContinentalEWR
Posts: 3619
Joined: Wed May 24, 2000 2:50 am

RE: USAirways New Hub

Fri Jul 14, 2000 10:15 am

I don't think they're restructuring anything for the
moment. It seems as though it's business as usual
at US Airways for the moment. The merger faces
many regulatory hurdles and the pilots union are
likely to put up a huge fight to stop it.

If UA and US merge, then US Airways and its
customers will benefit from UA's strong and
comprehensive presence in the West (SFO
and LAX are both UA hubs) but aside from
this, I do not see US Airways starting a
West Coast hub on their own.

The US Air West Coast route network,
which evolved out of the PSA network
post acquisition, was wound down
many, many years ago, with the regional
jets parked in Arizona (mothballed) and
the MD80's transferred to PIT and other
US Air hubs for East Coast service.

US Airways' strong and competitive East
Coast route structure does allow for a
very strong feed onto its flights bound
for LA, SF, Seattle, and the other cities
it serves in the region. Many are flown
with 757's or A319/A320's.

ContinentalEWR
 
Flaps
Posts: 1187
Joined: Sat Feb 05, 2000 1:11 pm

RE: USAirways New Hub

Fri Jul 14, 2000 10:38 am

Forget about a west coast hub for US. If the merger goes through they will obviously already have it. If the merger fails and they really want a Pacific presence they will do it from the east coast.

The west coast - Asia markets are saturated with competition, not exactly the type of market in which US excels. The east however still represents an emerging market with the A345, A346 and 777LR's still several years from entering service. Given the potential airspace congestion in the northeast say five years down the road, US is in a unique position. They have a huge, well established feed at both PIT and CLT. PIT has virtually unlimited expansion potential due to two factors. The airport occupies a huge land area which is less than 50% developed. The airspace above it is nearly free of congestion to a degree not matched anywhere in the northeast. CLT has the airspace but currently suffers from congestion on the ground. That problem is fixable with a runway addition and a redesign of the ground traffic patterns.

This leaves US with extremely attractive alternatives to ATL in the southeast and all of the northeast/midwest gateways, JFK, PHL, BOS, IAD, ORD, etc. This is one of the reasons that they were so attractive to United in the first place. In any case, if the company does look to the Pacific, it will be from the east regardless of the color scheme that ends up on the aircraft.

As an aside, on Tuesday of this week, both United and USAirways representatives sat in on talks between Allegheny county officials and a Japanese trade delegation aimed at opening services between PIT and Japan.