where is the big WN/FL/B6 expansion in PIT

[Jimmy Neutron]

http://www.pittsburghlive.com/x/pittsburgh...s/s_541165.html

"We're continuing with our growth plans for Pittsburgh," said Southwest spokeswoman Whitney Eichinger.

But which new destinations or flights would be added when has not been decided yet.

 

[jack mama]

Southwest CEO Talks on Pittsburgh Growth
http://biz.yahoo.com/ap/071205/pa_pittsbur...hwest.html?.v=1


Or as it should read, lack of growth:

"Southwest Airlines Chief Executive Gary Kelly said Wednesday he has "high hopes" of expanding at Pittsburgh International Airport, but steep oil costs and concerns about a sluggish economy prevent the company from doing so now."

In other words, don't hold your breath!

 

[Coffee_Tea_Or_Me]

Southwest CEO Talks on Pittsburgh Growth
http://biz.yahoo.com/ap/071205/pa_pittsbur...hwest.html?.v=1


Or as it should read, lack of growth:

"Southwest Airlines Chief Executive Gary Kelly said Wednesday he has "high hopes" of expanding at Pittsburgh International Airport, but steep oil costs and concerns about a sluggish economy prevent the company from doing so now."

In other words, don't hold your breath!

Exactly. SWA has smart management...if they thought PIT was some untapped goldmine, they would reallocate some of their aircraft and increase their presence in PIT. I think the promises of expansion in PIT is just some corporate smoke blowing....

 

[exB717Flyer]

For comparison, TWA used to have over 500 flights per day in STL. When AA gutted the operation what did Southwest, with their beautiful, spacious, brand-new terminal do? They decreased their operations there by 11%. It hurts the civic pride but O&D traffic is what rules.

 

[zethya]

"Rivals don't want gates dropped by US Airways"

http://www.post-gazette.com/pg/07340/839580-28.stm

 

[citrus jock]

HMMMM with Senator Spector going hog wild with the PIT issues and he stating he flew WN and he liked it and he got his bag... yeah right like he even checked in a bag .. where is WN coming to the rescue of PIT after they already announced additonal service from other cities and where is FL and B6 with their major plans for PIT. WN has already announced advanced services for Feb and Mar.. hmm where is PIT ... FL just dropped Bos-Phl service and DL picked it up with 50 crjs 4x a day after AA had already tried that route before FL came in with 125 seat 717s... like when will it end this .. its always goes back to Economics the same class we all took in high school. the times are a changing right now the economy is going downhill not surprising when it comes to a Republican leaving a year before he/she leaves the fuel is at 100 per barrell... WN is now paying the price and there are contracts up for renewral.. yes things are a changing . like Bette Davis said.. Fasten your seat belts its going to be a BUMPY RIDE.. never a dull moment . No one is exempt from what will happen economically its a different playing field for everyone .. let the games begin

I missed FL's announcement about "major plans for PIT". While I'm going back through the press release archives on our website looking for this announcement, I'll be sure to send George W. an email reminding him to sign an executive order declaring that oil will no longer be allowed to be above $30/barrel.

p.s. I wish it was fuel that was "100 per barrell". That would make it about $1.82/gallon.

 

[Arnold Ziffel]

I was sort of shot down earlier in this post, but I still maintain that the cost of operation of this airport has a lot to do with weather a company is willing to expand or add service.

True airport costs are only one part of total costs but Pittsburgh is saddled with high operating costs for an airline and other close options for travelers like CMT, CLE and CVG.

This would make it hard for a company to make a real commitment to PIT considering the following; The current cost of fuel, lack of a large O&D traffic base, High airport operating costs relative to nearby airports.

 

[Prince of PAWOBs]

True airport costs are only one part of total costs but Pittsburgh is saddled with high operating costs for an airline and other close options for travelers like CMT, CLE and CVG.

I'm guessing you meant CMH. Unless you're a passenger willing to burn a lot of fuel in your vehicle to drive to Columbus or Cincinnati, those two choices are out. Cleveland is possible, but still a bit of a push. The cost in fuel for your car would probably negate a lower fare out of those airports for the convenience of flying from Pittsburgh International.

At this point, there shouldn't be any sort of argument over the cost of doing business at PIT. DoUgIe said the airline was "marginally profitable" at one point in Pittsburgh, then suddenly it lost millions of dollars months later. It can't be both, so either someone lied or someone can't count their beans very well.

The passengers and the local employees get to suffer due to the ineptitude of current management. It's temporary, and it will pass. Any way you slice it, no one will ever trust US Airways in this area ever again. It is the Carrier of Last Resort at this point.

I would not be surprised if the plug gets pulled on the OCC project and the current maintenance hangars sometime in the near future. That would be the icing on a really terrible-tasting cake.

 

[Be Careful What You Wish For.]

It boils down to whether PIT was "marginally profitable" or not making money.

One could suggest closing PIT, while profitable would be a vindictive act (what other reasons could there be).

If the case was that it was unprofitable then closing PIT would be a rational business decision.

As painful as it is(I've been through this before), wishful thinking does not make a profit.

 

[trvlr64]

I was sort of shot down earlier in this post, but I still maintain that the cost of operation of this airport has a lot to do with weather a company is willing to expand or add service.

True airport costs are only one part of total costs but Pittsburgh is saddled with high operating costs for an airline and other close options for travelers like CMT, CLE and CVG.

This would make it hard for a company to make a real commitment to PIT considering the following; The current cost of fuel, lack of a large O&D traffic base, High airport operating costs relative to nearby airports.

As a former PIT resident I would NEVER drive to CMH, CLE or CVG to board a flight. There are a few who would drive to CLE to fly WN before they came into PIT but those days are long gone.

SO please stop thinking anyone in PIT is going to drive to those cities. And do you know how far CVG actually is from PIT? Look it up on a map.

 

[jimntx]

At this point, there shouldn't be any sort of argument over the cost of doing business at PIT. DoUgIe said the airline was "marginally profitable" at one point in Pittsburgh, then suddenly it lost millions of dollars months later. It can't be both, so either someone lied or someone can't count their beans very well.

Maybe they are using the same smoke-and-mirrors accounting that the railroads used to justify dumping passenger service. They had the numbers to present to Congress to "prove" that the passenger service was losing tons of money.

Of course, after they dumped the passenger service on the government--aka Amtrak--it turns out that the passenger service was actually profitable. They had made it appear unprofitable by charging every penny of track maintenance to the passenger service, none to the freight service.

 

[Prince of PAWOBs]

Maybe they are using the same smoke-and-mirrors accounting that the railroads used to justify dumping passenger service.

I wouldn't doubt that one bit. It seems creative accounting is all the rage no matter what industry you happen to be involved with today.

 

[FutureCEO]

Let's add some facts into the discussion regarding PIT's current plight. I just looked up some O & D data for Q1 2007 comparing PIT versus CLT. Obviously yields for PIT on average are lower than CLT's at this point given Southwest's rise and US's lack of will to defend what was home territory. I only looked at the top 10 O & D pairs for each market.

CLT passengers = 7,082, yield of $0.253

top market, LGA with 1,137 passengers/day


PIT passengers = 7,580, yield of $0.207

top market, MCO with 1,375 passengers/day


As I've stated before in my posts, the reasons for PIT's decline are mostly airline driven as opposed to market driven, and the current environment within the airline industry is not conducive in the short term for seeing any pickup in PIT flights (unless US recants on their recent pull down strategy). From a hub standpoint US has made the strategic decision to put all their eggs in the PHL, CLT basket for east of the Mississippi coverage. In my view PHL should be utilized as an O & D cash cow, but connecting traffic should be routed through PIT.


Thoughts?

 

[700UW]

You forgot one thing, the main reason US pulled down PIT was the high cost of fees for each passenger vs CLT.

 

[Breath_of_Fresh_USAirways]

If PIT was as lucrative and wonderful as the PIT airport operators and all the local Politicians say it is, then SWA would be all over those empty gates! Not to mention anyone else who thinks they could make a buck, there.

Alas, it's not. It costs too much to operate there and there is just not enough high-yield O&D traffic.

Period.

Simply Business and Economics 101.