America West to Shut Hub
In Attempt to Stanch Losses

By MELANIE TROTTMAN
Staff Reporter of THE WALL STREET JOURNAL

America West Airlines said it will shut down its hub operation in
Columbus, Ohio, which has been plagued with $25 million in annual
losses, cutting off the carrier's attempt to establish a greater presence in
the East Coast.

The moves come as the America West Holdings Corp. unit seeks to
stem losses and cut costs amid the current travel-industry recession.
The Columbus operation has suffered from increased competition from
rivals, the airline said.

"There are too many seats flying in markets we serve, certainly for the
existing demand," Chief Executive W. Douglas Parker said. The
Phoenix-based concern said it will focus on its other two hubs, in
Phoenix and Las Vegas.

Columbus always has been the weakest of America West's three hubs,
accounting for just 7% of annual revenue but reflecting a much greater
percentage of losses, Mr. Parker said. For 2002, the nation's
eighth-largest carrier reported a net loss of $430.2 million on revenue
of $2.05 billion.

America West said it will post a pretax charge of $10 million to $15
million in the current quarter related to the hub shutdown and plans to
phase out 12 regional jets. The decision will affect 400
Columbus-based employees who will be offered transfers to other
positions.

Analysts said the current economic environment likely will bring similar
moves from other carriers. "Smaller hubs tend to fail quicker than larger
hubs, and I think over time the industry will restructure to fewer
network players and fewer hubs," said Salomon Smith Barney analyst
Brian Harris, who noted US Airways' downsizing in Baltimore after the
Sept. 11, 2001, terrorist attacks.

America West established its Columbus hub in 1991 as a way to
broaden its reach into the East and serve more people in the Central
and Southern parts of the U.S. Increased competition came as rivals
boosted regional jet capacity in Columbus, including AMR Corp.'s
American Airlines and Delta Air Lines, which will begin using the 12
jets now flying as America West Express through an agreement with
Chautauqua Airlines, a wholly owned subsidiary of Republic Airways
Holdings Inc.

America West has 49 daily departures from Columbus to 15
destinations. From early April to mid-June, the carrier will downsize to
four mainline flights daily to Phoenix and Las Vegas.

America West , the first U.S. carrier to try selling food on its flights,
also has extended its test program offering snacks and meals to coach
passengers who otherwise get no food during their flights. At least two
major U.S. carriers -- Northwest Airlines and Delta -- also have
started their own trials.