US Airways today announced capacity reductions, job cuts, aircraft withdrawals, lounge closings and a slew of ancillary fees, including a $15 first checked baggage charge, that echo similar endeavors its legacy carrier counterparts have embarked upon to offset intractable fuel costs.
Just hours after United Airlines matched American Airlines' first checked baggage fee
(BTNonline, June 12), US Airways today jumped on the bandwagon with plans to charge customers $15 for their first piece of luggage. US Airways said the fee takes hold beginning July 9 for flights within the United States, and to and from Canada, Latin America and the Caribbean. Like other carriers, US Airways is exempting higher-tier members in its mileage program.
The carrier beginning in August will charge coach customers for all beverages onboard domestic flights, raising alcoholic beverages from $5 to $7, and charging $2 for previously free nonalcoholic beverages. US Airways expects those fees, and other unbundled options it already has introduced, to generate up to $400 million every year.
The carrier in the fourth quarter plans to remove up to 8 percent of domestic available seat miles, a revision of its previously anticipated fourth-quarter cuts of up to 4 percent. The carrier continues its stunted growth next year with proposed capacity cuts of up to 9 percent year over year, joining other major domestic players in recent capacity revisions
(BTNonline, June 9).
US Airways said it would return 10 aircraft this year and next, including six Boeing 737s and four Airbus A320s, cancel two scheduled A330 deliveries next year and evaluate additional aircraft reductions in 2009 and 2010. The capacity reductions would yield 1,700 job cuts, including "300 pilots, 400 flight attendants, 800 airport employees and 200 staff and management," the carrier said.
To facilitate in its capacity withdrawals, US Airways plans to take a bite out of its Las Vegas schedule, shutting down the bulk of its night operations beginning Sept. 3. US Airways expects daily departures from Las Vegas to be slashed nearly in half by year-end, compared with its schedule for the same period last year.
The carrier in August plans to shut down its lounges at Baltimore/Washington International and Raleigh-Durham International, and close arrivals lounges in Munich, Rome and Zurich.