Carrier aims to dispel rumors of Logan cuts

March 04, 2009|Nicole C. Wong, Globe Staff

US Airways is trying to dispel a rumor circulating among its workforce that the legacy carrier will cut most of its Boston flights by the end of the year in the face of fierce competition from Southwest Airlines Co., which recently said it will fly out of Logan International Airport by the fall.

In the question-and-answer section of a corporate newsletter issued to employees on Friday, an anonymous employee asked about the rumor and noted the carrier "has a tendency to pull out of a market whenever Southwest decides to enter or expand," citing Las Vegas and Pittsburgh as examples.

The newsletter's reply, provided by US Airways director of scheduling Glenn Martin, was that "at this point, there are no plans to reduce the flight schedule" out of Boston.

"It is sometimes true that when Southwest enters a market, the economics change and flights that were profitable for US (Airways) could become unprofitable," he said in the newsletter. "However, the opposite has also occurred, and there have been times when Southwest entered into markets that US (Airways) was serving and later pulled out completely, such as service to Hartford, Conn."

US Airways spokesman Morgan Durrant said the industry is rampant with speculation so the newsletter's Q&A section is designed to help quash rumors.

US Airways was Logan's third-largest airline last year, carrying 15.3 percent of the passengers, and now offers 87 daily departures to 21 nonstop destinations. Officials at the Massachusetts Port Authority, which runs Logan, have predicted Southwest's arrival will cause competitors to lower airfares but have not discussed the possibility that competitors will cut flights, said spokesman Matthew Brelis.

Separately, US Airway's chief executive Doug Parker said yesterday at Reuters' Travel and Leisure Summit in New York that the carrier has little room to cut any more flights or seat capacity because its fleet has dropped to almost the minimum number of aircraft required by its pilots' contract.

US Airways has 818 employees in Boston.

Material from Globe wire services is included in this report. Nicole C. Wong can be reached at nwong@globe.com.

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