In a special employee update issued this week, struggling US Airways laid out a strategy for its network that aims "to recapture the number-one marketshare position" on the East Coast. Diffusing speculation of a possible sale of the US Airways Shuttle, the carrier said its hourly operation between Boston, New York LaGuardia and Washington National will be "the centerpiece" of increased point-to-point flying.
As for its primary hubs, Philadelphia will remain at the "core of the network" while Pittsburgh, as previously announced, will be downsized from a hub operation to a focus city. "Smaller markets that have little demand to and from Pittsburgh likely will lose service," US Airways said. Charlotte, which will remain a traditional hub operation, will see increased domestic and international service.
The carrier also set a goal to increase by year-end the percentage of bookings channeled through its Web site, from 10 percent of the total to 20 percent. Other initiatives include increased automation through greater reliance on airport kiosks, improved aircraft utilization and a simplified fare structure
(BTN, May 10).
US Airways described as "radical" many of the changes to its business model, adding that productivity improvements will result in employee furloughs. Of course, a primary element of the carrier's restructuring is lower labor costs to be negotiated with employee union leadership.
There is mounting speculation that US Airways' newest efforts to transform into a more competitive, lower-cost airline and regain financial footing won't progress quickly enough to prevent a fresh bankruptcy filing. The company emerged from Chapter 11 protection nearly 14 months ago.