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- Aug 20, 2002
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from the yahoo board..new point to point etc.
America West sees growth in new routes
Mike Sunnucks
The Business Journal
America West Airlines plans on growing 10 percent next year, with the majority of that coming from new point-to-point flights and not via its main hubs in Phoenix and Las Vegas.
AmWest executives Thursday said they expect 60 percent of next year's growth will come from new low- fare point-to-point service while 40 percent will stem from hub operations at Phoenix Sky Harbor International and Las Vegas McCarran airports.
The Tempe-based airline has already begun new nonstop transcontinental service between Los Angeles International Airport (LAX) and Boston's Logan and New York's JFK airports. In December, JFK to San Francisco service begins. New Boston to San Francisco nonstop service begins in March.
America West Chairman and Chief Executive Doug Parker and vice president Scott Kirby want more point-to-points in and out of California in place next year. America West applied with government agencies to fly nonstop between San Francisco and Cabo San Lucas, Mexico. Approval for that new service could come as soon as next month, said Kirby.
Kirby said the airline would also like to begin transcontinental service out of Washington's Reagan National or Dulles airport and is also taking a look at such service to other major U.S. markets, as well as Mexican business hubs such as Monterrey and Mexico City.
"We think we have lots of opportunities," said Kirby at America West's annual media day with reporters.
Airline officials stress the focus on point-to-point (which has cost advantages) will not take away from AmWest's significant operations at Sky Harbor and Vegas.
America West continues to lobby for more flight slot availability at National and New York's Laguardia airports. Congress has approved more west coast flights at National and AmWest has applied for those spaces.
Buoyed by a profitable second and third quarters, increased numbers of business travelers and a successful transformation into a low-fare airline, America West will take delivery of several Airbus planes next year, will try to maximize usage of its existing fleet and plans on acquiring more jets in 2005.
Parker said he will look at both Airbus and Boeing planes for that acquisition.
Still, America West faces plenty of industry and company-specific challenges. The Air Line Pilots Association narrowly defeated a second tentative contract with the carrier earlier this week.
Parker said AmWest is open to the pilots' union holding another vote on the matter and said an $18
million pool of cash set aside for bonuses related to the contract would not available after the end of the year because it's part of this year's financials. Parker said he was frustrated by the failed pilot contract votes but would keep working on the matter.
America West vice president and top lobbyist C.A. Howlett said the carrier will continue to lobby for the reduction of security fees and taxes, which he argues are an overburden on the industry. Howlett said the addition of new security related fees, increased airport landing fees and taxes coupled with existing levies make airlines more heavily taxed than the tobacco industry.
Howlett said that at some airports back east AmWest has to sublease gates from traditional carriers. He and Parker want to see more access to those airports.
Next year, America West will also begin paying back the $429 million loan guarantee it received from the federal government to help it stay afloat after the Sept. 11, 2001, terrorist attacks. Those payments will be made in 10 installments over the next five years beginning in March
America West sees growth in new routes
Mike Sunnucks
The Business Journal
America West Airlines plans on growing 10 percent next year, with the majority of that coming from new point-to-point flights and not via its main hubs in Phoenix and Las Vegas.
AmWest executives Thursday said they expect 60 percent of next year's growth will come from new low- fare point-to-point service while 40 percent will stem from hub operations at Phoenix Sky Harbor International and Las Vegas McCarran airports.
The Tempe-based airline has already begun new nonstop transcontinental service between Los Angeles International Airport (LAX) and Boston's Logan and New York's JFK airports. In December, JFK to San Francisco service begins. New Boston to San Francisco nonstop service begins in March.
America West Chairman and Chief Executive Doug Parker and vice president Scott Kirby want more point-to-points in and out of California in place next year. America West applied with government agencies to fly nonstop between San Francisco and Cabo San Lucas, Mexico. Approval for that new service could come as soon as next month, said Kirby.
Kirby said the airline would also like to begin transcontinental service out of Washington's Reagan National or Dulles airport and is also taking a look at such service to other major U.S. markets, as well as Mexican business hubs such as Monterrey and Mexico City.
"We think we have lots of opportunities," said Kirby at America West's annual media day with reporters.
Airline officials stress the focus on point-to-point (which has cost advantages) will not take away from AmWest's significant operations at Sky Harbor and Vegas.
America West continues to lobby for more flight slot availability at National and New York's Laguardia airports. Congress has approved more west coast flights at National and AmWest has applied for those spaces.
Buoyed by a profitable second and third quarters, increased numbers of business travelers and a successful transformation into a low-fare airline, America West will take delivery of several Airbus planes next year, will try to maximize usage of its existing fleet and plans on acquiring more jets in 2005.
Parker said he will look at both Airbus and Boeing planes for that acquisition.
Still, America West faces plenty of industry and company-specific challenges. The Air Line Pilots Association narrowly defeated a second tentative contract with the carrier earlier this week.
Parker said AmWest is open to the pilots' union holding another vote on the matter and said an $18
million pool of cash set aside for bonuses related to the contract would not available after the end of the year because it's part of this year's financials. Parker said he was frustrated by the failed pilot contract votes but would keep working on the matter.
America West vice president and top lobbyist C.A. Howlett said the carrier will continue to lobby for the reduction of security fees and taxes, which he argues are an overburden on the industry. Howlett said the addition of new security related fees, increased airport landing fees and taxes coupled with existing levies make airlines more heavily taxed than the tobacco industry.
Howlett said that at some airports back east AmWest has to sublease gates from traditional carriers. He and Parker want to see more access to those airports.
Next year, America West will also begin paying back the $429 million loan guarantee it received from the federal government to help it stay afloat after the Sept. 11, 2001, terrorist attacks. Those payments will be made in 10 installments over the next five years beginning in March
