US Airways' Pa. fares to jump from $118 to $698

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Flying to Philadelphia? Unbuckle the purse

US Airways, sole carrier starting in January, hikes fare from $118 to $698

Tuesday, November 29, 2011
By Len Barcousky, Pittsburgh Post-Gazette

Fly US Airways in and out of Philadelphia from Pittsburgh on Jan. 4, and the nonrefundable round-trip fare would be $118, before taxes.

Take those same nonstop flights a week later, and the US Airways fare jumps to $698.

Information on fares was collected Monday afternoon on the airline's website.

Why the reason for the change?

Southwest Airlines, the only major competitor to US Airways on that route, will end its nonstop service between the two cities on Jan. 8.

Airline analyst Michael Boyd, who had predicted a big jump in Pittsburgh-Philadelphia airfares once Southwest ended service, wasn't surprised by the news.

"That's what happens when you have less competition," he said Monday. Mr. Boyd is president of Boyd Group International, an airline consulting firm based in Evergreen, Colo.

Neither was JoAnn Jenny, a spokeswoman for the Allegheny County Airport Authority, which operates Pittsburgh International Airport. "We had asked the community to support those Southwest flights, but passengers weren't choosing them," she said. "The company could not afford to keep operating."

US Airways flights to Philadelphia were about three-quarters full, while Southwest planes were barely half-filled. "Southwest was dying on that route," Mr. Boyd said.

Don't blame Pittsburgh passengers for the loss of that airline's service, he said. They were, at least in the short term, making intelligent decisions in picking the dominant carrier. US Airways offered advance seat selection, early boarding and frequent-flier miles through the Star Alliance system, which could be redeemed on a number of major airlines.

"If fares are the same, you'd tend to go with US Airways," he said. "The Southwest product wasn't competitive with business travelers who want to build frequent-flier miles and know where they are sitting."

The loss of competition and jump in prices, however, didn't sit well with Witold Walczak, who found out last week that the cost for his once- or twice-a-month flights across the state would increase more than five-fold in January.

"Unless you are or work for the one percent, these prices are prohibitive," he said. "This is price gouging of the worst sort ... the free market is really sticking it to the little guy.

Mr. Walczak is the legal director of American Civil Liberties Union of Pennsylvania. His reference was to the "one percent" of most affluent Americans who control a large portion of the nation's wealth.

The effect of the higher fares on nonprofit organizations, including the ACLU, would be fewer or longer, less productive business trips, he said. It is impossible to travel to and from Philadelphia in a day via Amtrak and impractical via the low-cost Megabus intercity bus service. "I'll probably end up driving more," he said.

Valerie Wunder, a spokeswoman for US Airways, said federal Department of Transportation restrictions limit how much the company can say about its pricing policies. "We do try to set fares based on what we think the market will bear," she said.

Travelers willing to accept layovers in Detroit or Washington, D.C., still can find round-trip bargains flights well under $200 for mid-January. One option, offered via the Orbitz travel website, combines an early morning flight to Newark and an Amtrak train to Philadelphia. Its base price, before taxes and fees, is $117.

One-way travel time for the one-stop flights, however, ranges between four and six hours. That makes flying comparable with driving the 305 miles between the two cities via the turnpike.

Ms. Jenny warned Pittsburgh travelers that another lower-cost route was in danger if traffic didn't pick up. JetBlue offers service twice a day to New York's JFK Airport.

"If those flights don't fill up, the airline will cease offering that service," she said. "If JetBlue goes away, the same thing that is happening to Philadelphia fares will happen to the New York fares," she predicted.

She encouraged JFK-bound passengers to go JetBlue. "Try it every other time or once in two or three flights," she urged.

Len Barcousky: [email protected] or 412-263-1159.
 
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Posted: Tue, Nov. 29, 2011, 9:15 AM

US Airways' Pa. fares to jump from $118 to $698


The Associated Press

PITTSBURGH - US Airways' round-trip fare from Pittsburgh to Philadelphia will jump nearly 500 percent early next year once Southwest Airlines drops its nonstop service between the two cities.

The nonrefundable round trip fare, not including taxes and fees, is now $118, but will jump to $698 after Southwest ends its service on Jan. 8, the Pittsburgh Post-Gazette reported Tuesday ( http://bit.ly/v7NfKh).

Airline analyst Michael Boyd, president of Boyd Group International in Evergreen, Colo., told the newspaper he's not surprised.

"That's what happens when you have less competition," said Boyd, who had predicted the fare hike.

Pittsburgh International Airport spokeswoman JoAnn Jenny said Southwest couldn't afford to operate the flights, which Boyd said were about half-full. US Airways flights on the route have been about three-quarters full.

"We had asked the community to support those Southwest flights, but passengers weren't choosing them," Jenny said. "The company could not afford to keep operating."

Boyd said, "Southwest was dying on that route."

US Airways spokeswoman Valerie Wunder said federal regulations limit what she can say about pricing policies but that the airline tries "to set fares based on what we think the market will bear."

Travelers willing to fly through airports in Detroit or Washington, D.C., will still be able to get fares under $200 , but with travel times of four to six hours, counting layovers. That means it will likely make sense for many frequent travelers to drive the 300 miles between the cities.

The newspaper said another option offered through the Orbitz travel Web site couples a flight from Pittsburgh to Newark, N.J., with Amtrak train service to Philadelphia for $117, excluding taxes and fees.

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Information from: Pittsburgh Post-Gazette, http://www.post-gazette.com
 
As I've said for a long time, passengers complain about the incumbent carrier's fares and love the low fares that low cost carriers bring to a market but keep flying the same incumbent carrier as before except for the lower ticket price. The business traveler is the worst - love the low fares but give up those perks on the incumbent...NEVER! So the low fare carrier doesn't get the revenue expected and pulls the flights, after which sure as day follows night the incumbent jacks the fares back up and everyone goes back to complaining about the high fares.

Jim
 
As I've said for a long time, passengers complain about the incumbent carrier's fares and love the low fares that low cost carriers bring to a market but keep flying the same incumbent carrier as before except for the lower ticket price. The business traveler is the worst - love the low fares but give up those perks on the incumbent...NEVER! So the low fare carrier doesn't get the revenue expected and pulls the flights, after which sure as day follows night the incumbent jacks the fares back up and everyone goes back to complaining about the high fares.

Jim

LCC has invited competition at every turn, with outrageous fares. Instead of being reasonable, and growing a market- they insult and rip off the business traveller. If the fares were reasonable with a fair profit, this market would flourish and grow. Not the case, again. Who will come in next and drive the fares down to stupid levels?
 
It is simple supply and demand. If it were a widget it would be okay, but since it is an airline seat, which everyone seems to be entitled to, it is an abomination.
 
LCC has invited competition at every turn, with outrageous fares. Instead of being reasonable, and growing a market- they insult and rip off the business traveller. If the fares were reasonable with a fair profit, this market would flourish and grow. Not the case, again. Who will come in next and drive the fares down to stupid levels?
The problem with being a high cost carrier in an increasingly low-cost driven industry....

US matches and even undercuts WN fares, so loses money on those routes. Which means making extra on other routes where "outrageous" fares are possible because US is the only non-stop game in town. Over the last two decades, as WN spread throughout the east the number of routes where US could charge "outrageous" fares dwindled, meaning those remaining routes had even more "outrageous" fares. It reached the point that PHL-BOS was over $1000 R/T, now PIT-PHL over $700 R/T (after taxes/fees).

Why do you think "all the revenue is in the east", as you and others mistakenly put it? Because CLT and PHL have relatively little low-cost competition so US can charge those "outrageous" fares on more routes.

Jim
 
If SWA cannot make it in PIT no one can.

That's because they're carrying to many people like you non-rev. PIT-PHL.

Who needs those "Vending machines with arms" to ensure the safety of the self loading cargo right?


Seriously this maneuver has Andrew Nocella's hanprint all over it. With US Airways cost structure it is necessary to gouge on monopoly routes to have a prayer of profitability. This makes Air Tran and WN who've tried to break the US stranglehold on this route that I'm aware of. WN held out longer and I think the route was likely profitable for them, what is likely is there were MORE profitable routes for them to fly.
 
I just wish someone in Allegheny County would use their brains and dissolve the Allegheny County Airport Authority.........
 
That's because they're carrying to many people like you non-rev. PIT-PHL.

Who needs those "Vending machines with arms" to ensure the safety of the self loading cargo right?


Seriously this maneuver has Andrew Nocella's hanprint all over it. With US Airways cost structure it is necessary to gouge on monopoly routes to have a prayer of profitability. This makes Air Tran and WN who've tried to break the US stranglehold on this route that I'm aware of. WN held out longer and I think the route was likely profitable for them, what is likely is there were MORE profitable routes for them to fly.


That evil company! Nasty capitalists, making money, employing workers, those bastards!

I'm beginning to think you have a crush on Nocella.
 
That evil company! Nasty capitalists, making money, employing workers, those bastards!

I'm beginning to think you have a crush on Nocella.

I've met Andrew and frankly unlike some of his colleague who THINK they're the smartest guys in the room. Andrew usually IS the smartest guy in the room. :eek:

I firmly believe that to date Andrew Nocella has saved two airlines from extinction. Your former employer when they switched pricing models that enabled them to compete with WN. As a result of his success at HP he was recruited to join US Airways. He managed to keep US cash positive long enough to keep the doors open for the subsequent merger.

Having flown on US at the Chairman's level for many years, I'm pretty familiar with how US prices. The fares are very organized and frankly predictable. There is no evil here. It's simply good business to exploit a market with a higher margin and charge as much as you can. As airline travel customers it's up to us to evaluate the value proposition. Is knocking off 6-8 hours R/T of windshield time worth $700.00? Sometimes it's frankly a bargain and other times not. It's the consumers choice, US holds no one at gun point and demands "Buy the ticket or we'll kill your children".

Not a crush, More like a deep respect. Doug to me is merely a flawed man as so many of us are. I think he could have been much more than he is. His personal challenges get in his way. Scott Kirby, to me is the living breathing embodiment of all that is wrong with American Business. I don't know much about Mr Isom except to say the airline seems to be running much better since he took over operations from the Empty Suit Kirby. While I don't think Andrew will ever be CEO, I do think without him US goes from black to red in two quarters and stays there until BK. If US ends up with AA and Mr Nocella keeps his current position, watch the combined airline soar profit wise. He doesn't talk about how good he is because he's to busy being good at what he does. He's also a very warm person, a gentleman among thieves.
 
If SWA cannot make it in PIT no one can.
It seems that many airlines are making it in PIT, unlike when the hub was there and US was almost the only game in town. For year to date through September, the latest month available, DL traffic was up 10.2% YoY, CO was up 25.9%, AA was up 32.4%, AC + 25.2%, F9 +13.5%, Myrtle Beach Direct Air +21.6%, and USA3000 + 22.2%. This when the airport only saw an increase of 3.1%.

Notice who's missing from the above? WN was down only 0.5%, UA -22.5%, FL -10.6%, B6 -7.9%, Skywest -85.8% (they dropped service in Sept), US was down 7.1%. While US may be the big dog for PIT-PHL again, it is slowly shrinking it's way to inconsequential in PIT. Has been since the hub closed.

WN just hasn't been able to attract as much traffic on the PIT-PHL route as it wanted, at least partly if not mostly because it decided to expand DEN instead of PHL, so took the equipment and put it where more profits could be generated. Through September it was still the 3rd biggest carrier in PIT.

Jim
 
It seems that many airlines are making it in PIT. For year to date through September, the latest month available, DL traffic was up 10.2% YoY, CO was up 25.9%, AA was up 32.4%, AC + 25.2%, F9 +13.5%, Myrtle Beach Direct Air +21.6%, and USA3000 + 22.2%. This when the airport only saw an increase of 3.1%.

Notice who's missing from the above? WN was down only 0.5%, UA -22.5%, FL -10.6%, B6 -7.9%, Skywest -85.8% (they dropped service in Sept), US was down 7.1%. While US may be the big dog for PIT-PHL again, it is slowly shrinking it's way to inconsequential in PIT. Has been since the hub closed.

WN just hasn't been able to attract as much traffic on the PIT-PHL route as it wanted, at least partly if not mostly because it decided to expand DEN instead of PHL, so took the equipment and put it where more profits could be generated. Through September it was still the 3rd biggest carrier in PIT.

Jim

The big mystery to me is how the parking lot is always almost full. Tons of empty unused gates, but the airport looks like it is firing on all cylinders.

I believe the exit of SWA from PIT-PHL (and JAX-PHL, MHT-PHL) had more to do with its realignment with the Tranny guys. Maybe even the slightly underperforming markets are getting the onceover.

Jim, your point is well taken on the traffic. Maybe World Traveler can also chime in here.

RR
 
With the exception of 2009 (the recession) I think PIT traffic has been increasing steadily since the low point when the hub closed. This year through September 6.2 million people flew from PIT, but US is getting about 25% of them instead of the 70-80% share when PIT was a big hub. In other words, the traffic is spread more equally among most of the carriers than it used to be.

One thing to keep in mind - the numbers are for enplaned passengers, which counts connecting passengers. Since US is the only carrier with significant connections, that inflates US' share.

Jim
 
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