Got this email today. Interesting. Do they have enough extra jets with the schedule pull down or are they going to shift resources from somewhere else?
Dear Friends-
I'm writing to draw your attention to a business transaction announced this morning. The transaction is between US Airways and Delta Airlines. It will allow US Airways to expand service at Ronald Reagan Washington National Airport. We will also gain the opportunity to enter key international business centers in Brazil and Japan.
The details of the announcement are included in the attached US Airways press release. Here are the highlights of the transaction:
· US Airways will obtain 42 pairs of slots at National Airport and will also acquire the rights to initiate international service to Sao Paulo and Tokyo.
· US Airways will transfer to Delta 125 pairs of slots currently used to provide US Airways Express service at LaGuardia.
· At National Airport, US Airways will provide nonstop service to 15 new daily destinations, including eight cities that currently have no daily nonstop service from DCA on any airline. We plan to maintain service to all DCA destinations where Delta decides to discontinue service as a result of this transaction.
· At LaGuardia, US Airways will maintain a significant presence, including the popular US Airways Shuttle. No changes are planned for US Airways' mainline flight levels at LaGuardia.
· US Airways expects the transaction to improve its profitability by more than $75 million annually.
We are excited about today's announcement and the opportunity to build on our solid presence in Washington, D.C. When the transaction is completed, US Airways will bring more jet air service to smaller communities from our nation's Capital. The transaction will improve our near and long-term profitability to the benefit of our employees, our customers, and the communities we serve.
--Tom Chapman Vice President for Congressional & Federal Affairs US Airways
Delta's press release doesn't really provide any insight on US Airways' expansion at DCA. Neither does the Airways release or the multiple stories on Reuters, AP, etc. Just wondering if anyone's heard any scuttle.
Edited - I stand corrected. This is the info I was looking for:
US Airways will operate 229 peak-day departures at DCA. Following full implementation of the new schedule, the airline anticipates its passenger enplanements at DCA will increase by 30 to 35 percent as a result of the new flights and use of larger aircraft. However, there will be no increase in net flight activity at DCA due to Delta’s reduction in slots.
US Airways’ expanded presence at DCA will create approximately 100 new US Airways jobs that will be allocated to DCA and throughout the new regions where the airline is starting service.
<<In every slot where US Airways operates small turboprops today, Delta will operate larger jets. These new markets and larger aircraft would allow more than two million additional passengers to transit LaGuardia each year without increasing the total number of takeoffs and landings.>>
Brilliant!! How many times have you heard your seat mate say the exact same thing when your waiting in the conga line at LGA!! Except maybe replace turboprop with RJ.
NEW YORK (MarketWatch) -- US Airways said Wednesday it expects to add $75 million to its annual results from a deal with Delta Air Lines that will expand its service at Ronald Reagan Washington National Airport and allow it to begin service to Brazil and Japan.
The agreement, subject to U.S. approval, would swap 125 pairs of US Airways operating slots at New York's LaGuardia Airport for 45 Delta slots. A slot grants the owner the right to schedule a landing or departure from an airport during a specific time.
For Delta /quotes/comstock/13*!dal/quotes/nls/dal (DAL 7.20, +0.18, +2.56%) , the deal would greatly expand its services to LaGuardia, one of the country's most congested airports. Last year the U.S. attempted to reduce traffic to LaGuardia and nearby John F. Kennedy and Newark Liberty airports by auctioning under-utilized slots.
The deal follows a similar arrangement between AirTran Holdings Inc. /quotes/comstock/13*!aai/quotes/nls/aai (AAI 6.84, +0.16, +2.40%) and Continental /quotes/comstock/13*!cal/quotes/nls/cal (CAL 12.15, -0.10, -0.82%) . AirTran gave its slots at Newark Liberty to Continental in exchange for Continental's slots in Washington and LaGuardia, Associated Press reported.
In December, a federal blocked the plan, and the Federal Aviation Administration sought instead to have the carriers alter operations voluntarily. See related story.
US Airways /quotes/comstock/13*!lcc/quotes/nls/lcc (LCC 3.05, +0.01, +0.33%) said the deal would leave it with a "significant presence" at LaGuardia, with no changes in its mainline fleet. Instead it will trim its regional operations, with its wholly-owned Piedmont Airlines feeling the greatest pinch and losing some 300 jobs as the flight schedule is reduced beginning next year.
Some mainline and additional Piedmont employees who provide support services could also be impacted, the airline said.
In turn, U.S. Airways would gain more access to Ronald Reagan and new market access to Tokyo and Sao Paulo.
"These two cities will complement US Airways' existing international portfolio of more than 50 destinations in more than 30 countries and territories across Europe, the Middle East, Latin America, North America, and the Caribbean," the Tempe, Ariz., airline said in a release.
US Airways expects to begin flying routes to Sao Paulo late next year and to Tokyo in 2012 or later.
Atlanta-based Delta said it expects to more than double its nonstop destinations it serves from LaGuardia, and will add new flights for more than a dozen cities currently served by US Airways.
Once the transaction is approved, the company anticipates spending nearly $40 million in construction to connect the current Delta and US Airways terminals, rebrand US Airways' existing main terminal gates, ticket counters and lounge, and create new Medallion, first class and Business Elite check ins.
"Increasing Delta's service in the world's most competitive and largest air-service market is a key part of our long-term strategy," Delta Chief Executive Richard Anderson said in a statement. "This transaction will provide substantial benefits to our customers, employees and shareholders in years to come."
Delta said the facility transition will be completed next year. It did not provide information on how the deal will impact its earnings.
Shares of US Airways jumped nearly 5% at last check to $3.05, while Delta added about 3.3% to $7.25.
NEW YORK (MarketWatch)
US Airways /quotes/comstock/13*!lcc/quotes/nls/lcc (LCC 3.05, +0.01, +0.33%) said the deal would leave it with a "significant presence" at LaGuardia, with no changes in its mainline fleet. Instead it will trim its regional operations, with its wholly-owned Piedmont Airlines feeling the greatest pinch and losing some 300 jobs as the flight schedule is reduced beginning next year.
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I believe this is Airways attempt at trying to save face that they are ducking out of a very huge market.
I would imagine they are mostly hiding behind their shuttle operations with the "significant" statement.
Really all that is left is BOS, DCA, CLT, PHL, and PIT (and a random ILM flight).
I found it interesting that LCC wants to fly from PHX direct to Japan, and part of the gate swapping involved this trade.
Hard to believe that's a perceived underserved route. Is it really from PHX to Japan, or is it from Washington to Japan? I guess LCC just enhanced their code share agreements with ANA, so this sort of makes sense.
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Quote:
Originally Posted by FlyinPiker
I believe this is Airways attempt at trying to save face that they are ducking out of a very huge market.
I would imagine they are mostly hiding behind their shuttle operations with the "significant" statement.
Really all that is left is BOS, DCA, CLT, PHL, and PIT (and a random ILM flight).
Maybe because we're only seeing this through the LGA perspective. We don't know the value of the DCA presence they're adding, but they're dominant there already, and they'll simultaneously get our (very significant) presence reduced, and theirs added. Their share of the market will increase significantly, AND the difference between them and their next competitior will be that much greater.
Don't forget they're backfilling routes we'll give up. I'm pretty sure they've had negotiations on what each route might yield.
Then, they get a new route South for the winter (Sao Paulo), and something to the Orient (Tokyo).
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Airways Expansion at DCA
How many times have you heard your seat mate say the exact same thing when your waiting in the conga line at LGA!! Except maybe replace turboprop with RJ.
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