US Airways Dividend Miles (Pre-FlightFund Merger) - SouthWest to PIT?

I can just see those $199RT fares to the West Coast already!!

Pittsburgh International Airport chief woos Southwest
Dallas carrier may get call to institute service here

Tuesday, April 15, 2003

By Mark Belko, Post-Gazette Staff Writer

With US Airways' future in Pittsburgh uncertain, Allegheny County Airport Authority Executive Director Kent George went yesterday to recruit a possible replacement -- Southwest Airlines.

George met with Southwest officials at their Dallas headquarters to discuss the possibility of starting service in Pittsburgh.

The discussions are part of a strategy by Allegheny County and airport authority officials to recruit new carriers even as they try to negotiate new leases with US Airways, the region's dominant carrier.

George could not be reached for comment after yesterday's meeting. But in a statement, county Chief Executive Jim Roddey said the visit "is part of a plan to meet with all airlines that could be a prospect to increase gates or flights" at Pittsburgh International Airport.

Southwest, long the darling of budget travelers, offers no flights from Pittsburgh and has turned down overtures from the county and the airport authority in the past, partly because of US Airways' dominance in the market.

And it does not appear as if Southwest is seriously considering Pittsburgh now.

Southwest spokeswoman Christine Turneabe-Connelly said the airline currently has no plans to add cities to its route structure. Instead, it is concentrating on adding or upgrading flights in the cities it now serves.

She described George's visit as a "general presentation" similar to those the airline has with other cities recruiting it. More than 150 cities discuss possible service with Southwest each year, according to the airline. Southwest is the nation's sixth-largest carrier.

US Airways rejected its leases at Pittsburgh International in a last-minute move before emerging from bankruptcy earlier this month. It has given the county and the airport authority until Jan. 5, to renegotiate the leases.

Unless local officials can lower the airline's costs significantly, particularly those relating to airport debt, US Airways may eliminate its Pittsburgh hub and consolidate service in Charlotte, N.C., and Philadelphia, Roddey has said.

While the loss of the hub would be a big blow for the region, with nearly 9,000 US Airways employees, it could create openings for other airlines at an airport that has won international acclaim.

Yesterday's meeting between George and Southwest was specifically designed "to bring them up to date on what's transpiring with US Airways and their termination of the leases," Roddey spokeswoman Margaret Philbin said.

George has said he was planning to meet with several major carriers that do not have service from Pittsburgh. Other possible prospects include JetBlue Airways, Frontier Airlines and Alaska Airlines.

Southwest typically looks for markets that are overpriced and under-served. It also seeks to avoid congested hubs or slot-controlled airports and looks for locations without significant gate, ground or air traffic control delays.

"Certainly the competitive environment plays a large role in our decision," Turneabe-Connelly said. "If it's overpriced and has plenty of service, it's not a good fit."

The airline also looks for sufficient local traffic to operate profitably. That could put Pittsburgh at a disadvantage because it does not produce a lot of originating travel. About two-thirds of the US Airways traffic through the airport is people connecting to flights elsewhere.

A plus for Pittsburgh is that the airport usually does not have delays. And Southwest has been expanding its presence in the Northeast in the last five years, with Baltimore-Washington International Airport being one of the chief beneficiaries.

Gov. Ed Rendell, meanwhile, is trying to get a date for a meeting later this month with US Airways officials and Pittsburgh and Philadelphia political and union leaders to discuss the airline's needs in Pennsylvania.

Rendell has said that he is willing to consider the airline's requests for help, but wants the carrier to "make a significant commitment to growth" in exchange for any assistance.

In addition to lower lease costs in Pittsburgh, US Airways is seeking $140 million in rent relief in Philadelphia. It also has asked for $155 million in capital improvements in Pittsburgh and $95 million in Philadelphia.
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I am certain that the only way Southwest could ever come to Pittsburgh is IF there was no USAirways hub, and even then it's very unlikely. I'd consider one of the other carriers more likely. Personally I'd hope for JetBlue -- they are a real pleasure to fly and I'm sure their network will continue to expand.

If Southwest got lower costs at PIT, they sure would come here. They serve many metropolitan areas with less O&D that PIT now. It's an uncongested airport that is easy to turn a plane at. Little if any weather delays. The only minus is the relatively long taxi (At the pace that the LUV guys taxi, I don't even know if that would pose a problem).

Heck, look at Southwest in CLE. They capped their presence at 20 flights/day or so due to cost. You don't think they would mind a lower cost airport with just about the same number of people, do you? Besides which, as they proved at BWI--they can kick US out of a US hub in the course of 5 short years.

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Saving the world, one clue at a time.

It would be beneficial for the State and County to have options to the loaded gun that US is holding to their head. I still say that if we must put up $000M dollars, let's find another airline to spend it on.

I don't know how the displaced US workers will take to SouthWest's salary structure, but there's really not much in the way of options for them.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by HPTunco:
...
I don't know how the displaced US workers will take to SouthWest's salary structure, but there's really not much in the way of options for them.</font>

They'll probably be delighted as it will most likely mean a pay raise. Remember, Southwest costs are low not because of significantly lower pay, but because of higher productivity.

That said, I doubt Southwest will begin service to PIT in the near future.

short story...

last year here at Purdue University, our only air carrier (Northwest Airlink) announced they were yanking the service unless Tippecanoe County forked over something like $500,000 annually to subsidize the air service. Seeing as money doesnt grow on trees here in West Lafayette, the county said "shove it," then turned around and offered one-fifth of that amount to American Connection to launch new service between here and St. Louis. That smaller portion covered the start-up costs of setting up connection's new station, and the rest of the money was spent on advertising of the new service (which has been very visible on TV and in the papers here). So far the new service, despite utlizing Jetstream 31's, is doing better than the former DTW service and has proved to be highly popular. Tipp county spent less money than what NW was demanding, gambled on losing air service entirely, yet got a MUCH better value in return.

the point: Allegheny county is doing the right thing shopping around and seeing what bang they can get for their buck. If that $122 million US is asking for can be divvied up among a few new entrants (southwest or not), the value would be loads better for the community in the long term. Kudos to Roddey & co for publicy displaying their commitment to finding the best solution.

If you read SWA gently worded response to the visit from PIT officials they basically told PIT to get lost.

SWA is not and will not based on the statements be coming to PIT anytime soon so it looks like the "loaded gun's" Hammer just got cocked.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by PineyBob:
SWA is not and will not based on the statements be coming to PIT anytime soon so it looks like the "loaded gun's" Hammer just got cocked.</font>

What?

US has already slashed 3000 or so jobs. At the cost structure they want, they county still might default on the airport bonds.

Why then, do you believe that US has a zero-sum game with PIT? The aiport bond rating will fall if the bonds default, but that might happen anyway. Why not forget US and work at getting new blood into Pittsburgh?

LUV won't move right in. If US leaves after 1/1/2004, I'd say the first LUV flight will be sometime between 10/1/2004 and 1/1/2005.



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Saving the world, one clue at a time.

The article in today's PG says that SouthWest will not expand into PIT THIS YEAR. Nothing is said about next year or beyond.

The PIT lease is firm until the end of this year....that's not to say plans couldn't be put in place for a new carrier beginning service next year.

OK,
For arguments sake, suppose US disappeared completely. What would PIT look like? Ghost Town? Haven for LCC's? Expanded Big 5 presense?
With the industry as crippled I don't see any huge moves! Oddly enough I think PIT and US need each other. Kinda like a married couple that stay together for the sake of the kids.

PIT wouldn't look MUCH different! USAirways provides us with non-stop (mostly RJ) flights to a lot of smaller destinations, but your big destinations are already hubs of other airlines (New York, Chicago, etc) and already have competitive service.

I know a Canadian company that moved to Pittsburgh because of being physically closer to New York -- well there are still several other airlines that fly to New York other than USAirways so they'll be fine. Sure, it'll stink to have to connect in Atlanta to get to somewhere relatively close as Raleigh, but I think 'the rumors of USAirways' death effect is highly exaggerated'.

just a point of clarification that SWA noted they dont plan to add any cities this year, PIT or otherwise.

Cant blame them - why mess with a profitable airline?