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T-Bird76
2007-11-09, 12:37 AM
It seems the "New" US Airways is just making friends all over the place. I cannot believe the company is letting Doug Parker run this company the way his team is.


Fury over airline's threat

By Steve Goldstein and Tom Belden

Inquirer Staff Writers
Livid at US Airways' threat to call off expansion of its service in Philadelphia, Sen. Arlen Specter accused the carrier yesterday of extortion and berated its chief executive officer.

"If it's just jawboning, so be it," said a visibly angry Specter (R., Pa.), glaring at Douglas Parker, the CEO, following a meeting in Washington. "But maybe there's more that we can do."

At the same moment in Dallas, Southwest Airlines - US Airways' rival in Philadelphia and nationwide - detailed its own growth plans for Philadelphia. And Ron Ricks, Southwest's executive vice president, pointedly complimented Philadelphia city and airport officials "who have bent over backwards to be fair to everybody."

The reactions came after US Airways, the dominant carrier at the fast-growing Philadelphia International Airport, threatened to scuttle its plans to provide nonstop flights between Philadelphia and Beijing, capital of the world's fastest-growing major economy. Many local and national officials had lobbied for the routes on the carrier's behalf, but US Airways now says it cannot sustain the service if the airport allows Delta Air Lines to move into the disputed Terminal A-East as planned next week.

Its threat Tuesday was met by jeers from city and airport officials, which grew into anger yesterday. The 60-minute Washington meeting, held in Specter's office and attended by Democratic Sen. Bob Casey and nine Pennsylvania congressmen, was highly acrimonious, according to a participant.

Parker and US Airways president Scott Kirby were criticized for planning drastic cutbacks in Pittsburgh, as well as threatening the Beijing-Philadelphia route.

"It was not a satisfactory meeting," Specter told reporters later. "The delegation and I worked very hard on the flight to Beijing, to get the Department of Transportation to agree. US Airways talks about a new terminal for Philadelphia, but I don't know that I will back federal expenditures for a new terminal with the way this company conducts itself.

"I told Mr. Parker, and I don't use this word lightly, it sounds like extortion: 'If you give Delta these slots, the Beijing flights are off; if you give Delta these slots, then we will look to Charlotte and Phoenix as hubs,' " Specter said.

The senator then noted that US Airways reported a sizable profit during the first nine months of 2007.

Parker, who had led America West, based in Tempe, Ariz., until it merged with US Airways in 2005, mostly maintained his composure under the onslaught.

He said that airline executives were "working hard to help the delegation understand our perspective" and that the carrier was "deeply committed to the Commonwealth of Pennsylvania."

Parker said the Philadelphia airport's plans to allow domestic carriers to move onto its international concourse would adversely affect the expansion of US Airways' routes and service.

"We're not trying to threaten anyone . . . but if, indeed, we have fewer gates than we had last summer, then not only won't we be able to expand, we will have to contract our international operations," Parker said.

As Parker tried to explain his negotiations with the Philadelphia airport, Specter interrupted to say that the "adverse effects" predicted by the carrier "seemed a little more than coincidental."

"It's the facts of the situation," Parker replied.

Parker repeatedly referred to the delegation as "the congregation," but his preaching fell on angry ears. Specter said he took Parker's Philadelphia ultimatum seriously.

"I'm going to be taking a look with the Department of Transportation about the Philadelphia-to-Beijing flight," he said. "Perhaps he can't withdraw it, perhaps he can."

Delta's move from Terminal E to A-East that US Airways opposes is a long-anticipated and much-needed part of Southwest Airlines' plan to eventually double its flight schedule from Philadelphia.

Ricks, who oversees Southwest's airport operations, detailed how the airline had worked with Philadelphia airport officials since it started service to Philadelphia in 2004 to get enough gates for its 120-plus flights a day.

The airline now has 63 daily flights to 16 cities, with plans to add three cities next spring. But it eventually could use as many as 17 gates in Terminal E, Ricks said in an interview at Southwest's Dallas headquarters.

"This is not Southwest vs. US Airways," he said. "The city's plan for using its gates has been years in the making. The Delta relocation looks simple, but it's a huge deal. . . . It's the first domino that has to fall, for a lot of other things to happen."

Southwest decided to come to Philadelphia, the kind of major-airline hub that it traditionally avoided, in part because airport officials had a vision of adding a "hammerhead" or semi-circular extension, to the end of Terminal E. That would give Southwest additional gates beyond the four it had at first.

Southwest later rented four more gates in Terminal D, but the separate security checkpoints for D and E make it a cumbersome operation for the airline, Ricks said.

In order to begin working on the expansion of Terminal E, Delta would have to move to Terminal A-East, which it wanted to do anyway to save on rent and have better facilities, according to Ricks and city Aviation Director Charles J. Isdell.

Southwest, US Airways, other airlines and airport officials all agreed almost 18 months ago that Delta's move would proceed. But airport officials came to Southwest in December, saying US Airways had asked for the plans to be put on hold because it wanted to use A-East to add more international flights last summer, Ricks said.

Since then, Isdell said, the airport has studied and rejected other ideas proposed by US Airways to keep Delta out of A-East.

Smartass Flyboy
2007-11-09, 12:51 PM
While there have been many mistakes US has made this one I actually back Doug on. PHL is trying to make room for a WN who barely has 3 years in place at PHL at the expense of a long term player and hub airline. Sorry that just doesn't ring fair to me. Let's reverse it, say US got all their acts together and suddenly needed 3 more gates than they have now. Let's assume US had the best gate utilization of any airline in history, already used every hard stand available, but still needed 3 more. Would PHL be willing cut 3 of WN's gates to give to US? Would everyone bashing US on ANET back the play I just described? I'm going to guess no to both questions. Sorry but if WN wants to expand at PHL they need to either convince an airline to give up their gate leases or wait for gates to become available just like US would have to do if they needed more gate space.

markg
2007-11-09, 01:31 PM
One thing I don't understand (actually I do understand but no-one has mentioned it yet!) is that if you take a look at existing service to PEK from JFK, EWR, IAD the flights all leave between 12pm and 3pm.

Presumably US would be doing the same, because if they didn't depart until 6pm the arrival time would be around 9pm in PEK, which is not going to suit the needs of the passengers.

Now any time I've been at PHL the international terminal is never completely full between 12 and 3 because some of the European flights don't arrive until 4 or 5pm. Also they use A-west for international flights not A-East which is served by AA and others.

So despite what flyboy's view is, that argument doesn't hold because US currently don't use A-East, so they are not having gates taken away from them. Delta are getting a good deal out of it because they get the newer facilities, while WN get the crappy old facilities over in E.

Parker and Co. need to grow up and stop behaving like they've attended the British Airways school for management training. (BA pulled the same kind of stunts in MAN for years!)

I for one am not going to fly US in future, if this is the way they want to operate.

hiss srq
2007-11-09, 02:33 PM
Situations like this make me sick. This groveling to Southwest makes me sick. Recently they just broke their system into a 15 fare class system. The diffrence between that airline and real airlines is within that 15 class bracket we have a diffrence in service. First class cabins, and such. yeah yeah Southwest has low fares big deal. I have many times in recent found US on NY to florida cheaper than WN online a few days out. I am sick of all of the horse crap with airports having to meet Southwests expectations in order to get service but for every other carrier that is not the case. Give it a rest.

Nonstop2AUH
2007-11-09, 03:27 PM
While I agree these tactics are heavy-handed, they are not extreme compared with how the big names in other industries play hardball to get what they want from municipalities, local government agencies etc. For example, banks and investment firms regularly threaten to leave NYC unless the city or state give them tax breaks, variances, etc. whatever they want. Goldman Sachs, which pays average compensation per employee of around $500k a year, threatened to leave lower Manhattan for Jersey City unless it got some taxpayer-funded goodies and I think in the end they got a break of $250m or so which those of us who live in NY essentially subsidized, although I doubt many of us make $500k a year. This is just how the game is played when you're a large company and you know a municipality or local agency needs the jobs and economic activity your business generates. While some call it "corporate blackmail," I'm sure at most b-schools it would be called good business.

T-Bird76
2007-11-09, 03:44 PM
Situations like this make me sick. This groveling to Southwest makes me sick. Recently they just broke their system into a 15 fare class system. The diffrence between that airline and real airlines is within that 15 class bracket we have a diffrence in service. First class cabins, and such. yeah yeah Southwest has low fares big deal. I have many times in recent found US on NY to florida cheaper than WN online a few days out. I am sick of all of the horse crap with airports having to meet Southwests expectations in order to get service but for every other carrier that is not the case. Give it a rest.

Ryan first off WN is a real airline. Second US was just rated the worst airline in the nation by the NTSB for consumer complaints so to say WN is anything less then US is just preposterous. There's a very good reason why PHL wants WN to expand..its called economics 101. WN is currently the largest airline in the nation in terms of passengers boarded. Why wouldn't an airport want a guaranteed draw? It means more tax revenue for the city of PHL. BTW do I have to keep telling you that US does not have first class! Those front seats are just larger coach seats in really bad condition. Sitting on WN's exit row if more first class then what US gives you :twisted: :wink:

btw Nonstop2AUH, outstanding synopsis of the situation.

PHL Approach
2007-11-09, 07:36 PM
Well it comes down to a few things that had happened over the years. When the DOA got WN into Philly in 2004 or so they had the plan formulated from the beginning to do all this. The DOA had it in for us when we went through the first BK and then they had everything final when the 2nd hit. They definitely thought we were goners as most of the industry had. Then we had our revival and are coming back not exactly as the "nations best airline" but strong and as always been... a cash cow.

Now the DOA is moving DL for a primary reason that obviously there wont be enough gates at E for WN if DL was also there during construction. What should be done is after construction is done (four new gates added). DL should be moved back just in time for Summer. This should only be temporary... Or DL should be using A2, 4, 6 and through in 14 for good measure. They barely get use (especially 14 which only F9 uses for about 4 hours a day total) and lets us use the widebody gates on the end - 10, 12 and 13 (the gates DL will have). For over 6 months I had the idea of relocating Cargo City to between the end of UPS and where Hog Island Rd. Then demolishing it to build a 25-30 gate terminal (ala McNamara terminal or something you would see in Asia - straight and long). The length of Cargo City funny enough is the same distance between UPS and Hog Island Rd.

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Mark we did use A-East heavily (we still do) and will continue all the way up until the 14th when DL comes over. We would tow the first bank usually all the 75s to Deice and the Hanger so the next bank could come in. Then the 6 o clock bank of departures would leave and the 75s would be taxied back. I think gate utilization has gotten much better over the years. But there is always a little room for improvement.