America West to close Ohio hub to cut costs

Tuesday, Feb. 11, 2003 | 11:18 a.m.

SUN STAFF AND WIRE REPORTS

America West Airlines will eliminate its money-losing hub in Columbus, Ohio, by mid-June, reducing the number of daily flights originating there from 49 to four and relying on its larger and more profitable Western hubs.

The airline will also reduce its Columbus work force to about 65 from roughly 400 employees. Columbus employees will be able to transfer elsewhere within the company or taking a severance package, the airline said.

America West spokeswoman Janice Monahan said the Columbus hub, one of three for the airline, has been consistently unprofitable. America West lost about $25 million per year on the operation.

The Tempe, Ariz.-based airline, the nation's eighth-largest carrier, has posted losses for nine straight quarters.

Airline officials said the Columbus hub was no longer as crucial as it was when it was established 12 years ago to connect passengers to the East Coast.

"As flights from our primary hubs of Phoenix and Las Vegas grew to major East Coast markets, the value of Columbus as a connecting hub has diminished," said Scott Kirby, an America West executive vice president.

As part of the downsizing, America West will phase 12 Columbus-based regional jets out of its fleet. The aircraft will remain with Chautauqua Airlines, which operated them under the America West Express name.

Monahan said the America West Express flights made up the bulk of the airline's flights at Columbus, serving 15 destinations. The airline will now only operate two daily flights to Phoenix and two to Las Vegas.

David Whitaker, a vice president at Port Columbus International Airport, said America West carried 21 percent of the airport's passengers in 2002, more than any other carrier.

On Wednesday, Delta Air Lines plans to announce expanded service from Columbus.

The plan to eliminate its hub in Columbus could eventually result in more flights and more employees for the airline in Las Vegas.

A spokeswoman for the airline on Monday said the company would be evaluating other decisions about flights and employees and how to reallocate its resources in coming weeks.

The airline has 1,030 employees based at McCarran International Airport, where it is the second-busiest carrier behind Southwest.

McCarran officials say America West and its America West Express affiliate operated by Mesa Airlines average 80 daily flights to and from Las Vegas and that the number of seats on planes coming into the city represents a 19 percent share of the market.

From Las Vegas, America West and America West Express serve 36 markets with nonstop flights.

As a result of the hub closure, one-stop service from Las Vegas to New York's LaGuardia Airport on America West would be eliminated. LaGuardia has a 1,500-mile perimeter rule that precludes the airline from offering nonstop flights to that airport from Las Vegas or Phoenix.