Airline announces network restructuring

US Airways intends to drop Pittsburgh as a hub.
ARLINGTON, Va. (AP) -- US Airways plans to dramatically alter its hub-and-spoke network and will instead emulate the point-to-point network that has been successful for low-fare carriers, the company told labor groups Wednesday.
Company officials say the restructuring is necessary to keep the struggling airline afloat.
The company also plans to reduce and simplify its fare structures to compete with low-fare carriers. Those changes are already under way at the airline's Philadelphia hub, where the airline is bracing for competition starting this month from Southwest Airlines.
Under the plan, Philadelphia would remain a hub for the company's trans-Atlantic flights, and Charlotte would remain a hub for the company's profitable routes to the Caribbean.
The airline's third hub, currently located in Pittsburgh, would no longer be a hub but would instead be a "focus city" with fewer flights but would still be the largest carrier at that airport, the airline said in a taped message Wednesday for its employees.
The airline also plans to keep a strong presence in Boston, New York and Washington, taking advantage of its strength in key East Coast markets.
Letter to Pa. governor
US Airways President Bruce Lakefield, in a letter to Pennsylvania Gov. Ed Rendell, said that "under the revised business plan, we see US Airways still being the major carrier in Pittsburgh, although not at the current level of activity."
He also said that changes in flight schedules would not occur until at least September and that the airline would not reduce its work force at Pittsburgh until then, either.
Pittsburgh had once been the airline's biggest hub. Before the Sept. 11 attacks, the company operated 542 flights a day out of Pittsburgh. That number has dropped to 372.
The airline also plans to reduce its fares and simplify the fare structure to compete with low-price carriers.
New fares
Last week the company unveiled its new "GoFares" structure in Philadelphia, with fares ranging from $29 to $499 one way. On some routes walkup fares dropped by 40 percent or more. The airline eliminated the requirement for a Saturday night stay to obtain the lowest fares.
Airline spokesman David Castelveter said the changes in Philadelphia will be the model for the rest of the network.
A spokesman for the pilots union said the airline's plan is a solid one.
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