Some Carriers Recall Furloughed Employees, Add Capacity

American Airlines this week announced the largest service resumption of any U.S. carrier since Sept. 11; beginning tomorrow, 41 new roundtrip flights to 37 destinations will be added from its Dallas-Ft. Worth hub.

With traffic levels inching back from devastatingly low levels since September, a few airlines have recalled furloughed employees and begun restoring capacity. Partially restoring convenient schedules for time-sensitive business travelers, some carriers have restarted routes from major hubs, adjusted frequencies upward and gradually reconnected with Reagan Washington National Airport.

Despite some current industry predictions of nearly complete traffic recovery by the third quarter, other carriers, including Delta Air Lines and United Airlines, have yet to announce any employee recalls and thus far resurrected service only on select routes.

American said the new services will enable it to restore late evening connections on westbound and short-haul flights. "We'll begin adding some capacity back into the system on Jan. 31 at our hubs and some of our big cities. We'll also add another layer of new service in the March schedule, and, unless the economy dips south, we'll add more in April," said American Airlines CEO Don Carty in a message to employees. "This is part of our strategy to gradually and thoughtfully restore the airline's capacity as we see demand start to grow, especially among business travelers."

AA on March 2 also will begin two daily nonstops between New York JFK and Oakland, competing directly with incumbent JetBlue Airways. Internationally, AA on April 19 will launch New York JFK to Tokyo service, followed by a second daily frequency on the DFW to Tokyo route starting June 1. DFW to London Gatwick frequencies also are slated to increase in March.

The new capacity, driven by rising traffic levels, enabled AA in December to begin recalling 800 reservationists. The carrier also is bringing back hundreds of airport workers and as many as 400 flight attendants.

America West Airlines, which recently received loan guarantees from the federal government, next month will begin bringing back 75 pilots of 179 furloughed, or 42 percent. The carrier already has recalled 650 employees in customer service and reservations areas and reinstated one-third of all flights cut after Sept. 11. AWA said additional flights will be added to the schedule throughout the spring.

Smaller carriers recalling employees or adding service include AirTran Airways, American Trans Air and JetBlue Airways.

Continental Airlines has yet to announce employee recalls and expects capacity to remain at least 10 percent lower, year-over-year, during the first and second quarters. It did, however, resume flights between its Cleveland hub and Reagan Washington National and added numerous seasonal frequencies to leisure destinations. On April 15, it will resume daily service from Cleveland to London Gatwick, a month earlier than planned.

Aside from restarting New York JFK to Reagan Washington National flights, Delta has resumed domestic service mainly with Delta Connection carriers linking smaller destinations to major hubs and seasonal mainline service to leisure destinations. However, on the international scene, Delta last month relaunched New York JFK to Brussels flights in the wake of the Sabena collapse and on April 1 will launch new nonstop service between its Atlanta hub and Milan Malpensa. A second daily New York JFK to Paris flight will begin March 15. The carrier has yet to announce any employee recalls.

Northwest Airlines also has not recalled employees, however an executive told Business Travel News that decisions to restore capacity are imminent. The carrier is expected to significantly boost service through Detroit once its new mammoth terminal at the airport opens next month. Further, Northwest plans to follow through with 61 new aircraft deliveries and "add capacity conservatively when it is clear that it will improve our financial position."

US Airways, most affected by the slow resumption of service at Reagan Washington National, said its fourth quarter capacity still was down nearly 20 percent. It expects first quarter capacity to remain at that level.

For its part, United has not announced any major domestic service restorations nor any employee recalls. The carrier's strategy moving forward calls for significantly reduced, but more flexible operations.

Southwest Airlines, which did not materially reduce its schedule nor layoff any employees, said it continues to "cautiously resume growth plans" as it accepts four new aircraft this spring. The new Boeing 737s will make possible new service between Chicago Midway and both Seattle and Oakland as well as increased frequencies to other markets.

Alaska Airlines also did not reduce its mainline workforce after Sept. 11 and plans to completely rebuild its schedule to pre-Sept. 11 levels by Feb. 10. In April, it will add brand new service from Seattle to both Boston and Denver.