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AIRLINE INDUSTRY: US Airways cutting LV flights

Second-busiest carrier at McCarran realigns operations

McCarran International Airport's second-busiest air carrier will cut its service to and from Las Vegas by nearly half starting in February.

The announcement by US Airways marked the second time in two years the Tempe, Ariz.-based carrier said it was reducing Las Vegas service. The move was part of an realignment by US Airways, which will cut 1,000 jobs, end service into several markets and close stations and crew bases in several U.S. cities, including Las Vegas.


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  • US Airways employs 880 people in Las Vegas. A spokesman for the airline said it was unclear yet how many of the Las Vegas employees will lose their positions because some workers will be able to transfer to other markets.

    In Las Vegas, US Airways operates 64 daily flights. The number will fall to 36 by February, a 44 percent reduction. In a statement, the airline said high fuel prices and the lack of customer demand were the reasons behind the reduction.

    US Airways is also ending nonstop service between Las Vegas and Detroit; Minneapolis; Seattle; San Jose, Calif.; Orange County, Calif.; Orlando, Fla.; Fort Lauderdale, Fla.; Chicago (O'Hare); Vancouver, British Columbia; and Toronto.

    "The schedule changes in Las Vegas are being made for similar reasons to what we announced in the first half of 2008," said Morgan Durrant, a spokesman for US Airways.

    US Airways Chief Executive Officer Doug Parker said the cutbacks in markets like Las Vegas were being done to focus on the airline's hubs in Philadelphia, Phoenix and Charlotte, N.C., and its base at Washington's Reagan National Airport. Parker is working to return US Airways to profitability after net losses in seven of the past eight quarters.

    The current airline was created in 2005 following the merger of America West Holdings Corp. and the US Airways Group Inc. The carrier cut some 1,300 jobs among pilots, management and other work groups in 2008.

    US Airways is second only to Southwest Airlines in the number of passengers it services at McCarran. In September, US Airways flew 359,923 passengers in and out of McCarran, a decline of 26 percent. For the first nine months of the year, the airline had serviced almost 3.8 million passengers, a 34 percent decline from a year ago.

    Clark County Department of Aviation Director Randall Walker said the airport only learned of the planned changes Wednesday.

    "We're analyzing the details to determine how this will affect Las Vegas-bound passengers versus those who were just hubbing through, looking at each market individually, in order to determine how this will impact the community," Walker said.

    The news concerning the Las Vegas flight reductions was viewed negatively by Wall Street.

    Janney Montgomery Scott gaming analyst Brian McGill has said in recent investor notes that the airlines need to increase flights by 10 percent to 15 percent to serve an increasing number of hotel rooms.

    The Golden Nugget will open 500 hotel rooms at the end of November, while CityCenter will bring almost 6,000 hotel rooms to market by the end of December.

    Based on a planned 15,000 new hotel rooms, McGill believes the city needs to attract an additional 3 million visitors annually.

    "We continue to remain cautious on the outlook for Las Vegas given the additional hotel supply and lack of airline capacity into the market," McGill told investors. "With 43 percent of the visitors arriving by air, this would mean an additional 1.29 million visitors would need to arrive on planes. Given these airline capacity cuts, we expect the Strip to become more reliant on the less profitable drive-in customer."

    The Las Vegas Convention and Visitors Authority viewed the news as more of a reflection of how US Airways wants to modify its business model. Vince Alberta, the convention authority's chief spokesman, said the agency expects other domestic air carriers could pick up flights vacated by US Airways.

    British Airways just started a once-a-day nonstop flight between McCarran and London's Heathrow Airport. XL France is expected to begin a nonstop flight between McCarran and Paris next year.

    "Other carriers have demonstrated an interest in this market," Alberta said.

    Durrant said US Airways could resume flights if demand increases.

    Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.

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    Rodman wrote on October 29, 2009 11:20 PM: Look at it like this;keep cutting flights and the taxpayers won't have to come up with the money for the new airport at Ivanpaw or what ever the name of that town is.


    Dez wrote on October 29, 2009 08:35 PM: Last year I went to Vegas twice. I have been watching plane fares from Edmonton, AB all year and there are no bargains as a result of the lowered number of passengers coming.


    Ex-Vegan wrote on October 29, 2009 04:05 PM: @Dan and @Steve - You are absolutely right! After America West and USAir merged, the airline became one of the worst ever, with the surliest flight attendants I've ever seen. That merger did nothing to help air travel in this country.


    Ken wrote on October 29, 2009 12:29 PM: I hear Harry Reid is saving everyone's job these days. MGM is so deep into Harry's pocket that I am sure any of these people who lost their job could go to MGM and tell them, "Harry said to get it done."


    American Gaming Guru wrote on October 29, 2009 12:00 PM: Maybe Allegiant will take over!


    Joe Bama wrote on October 29, 2009 11:31 AM: GDP expanded by 3.5%? Yeah sure look at the job growth. Mike did acorn give you a job counting illegals?


    Mike wrote on October 29, 2009 10:13 AM: "Tell me again how the economy is improving???"

    GDP rose by 3.5% in the third quarter. That's the textbook definition of a recovery. Your beloved Bush's recession will linger in Las Vegas for a while longer though.


    Dan wrote on October 29, 2009 10:02 AM: Parker and America West never should have merged with the sinking US Air from Pittsburg. It's been downhill ever since.


    SweetSue wrote on October 29, 2009 09:27 AM: I worked for America West at McCarran several years ago. At that time we had over 150 flights per day in and out of Las Vegas -- and that wasn't the peak. Obama and his Czars need to wake up and listen to Mr. Wynn! Tell me again how the economy is improving???


    Bill wrote on October 29, 2009 08:57 AM: I look forward to visiting the Las Vegas Ghost Town in a few years. It will make a nice afternoon stop on the way to the Grand Canyon.


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