Parker stresses US Airways' hubs generate less traffic

Washington DC
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Management at US Airways is stressing to employees that its hub structure doesn't produce the traffic levels of other US legacies, which puts the carrier at a revenue disadvantage.

The carrier has long stressed that its Charlotte, Philadelphia and Phoenix hubs are smaller markets that produce less local original traffic than the Atlanta, Chicago, Dallas and Newark hubs run by rivals.

"That results in a 13% disadvantage in adjusted revenue per available seat mile," US Airways CEO Doug Parker recently told employees at a leadership conference. "To overcome that disadvantage, US Airways must maintain a similarly-sized cost advantage."

Joining Parker at the conference carrier President Scott Kirby explained part of sustaining that advantage is doing more with less.

"It's not the easiest to explain, but our employees need to understand the need to keep our labour cost advantage," Kirby states. "We don't generate as much money as other carriers, so we can't pay employees what our competitors pay."

After being rebuffed by United in 2010 prior to the United-Continental merger, US Airways management states by maintaining its cost advantage, "we'll be able to choose whether we want to be a standalone carrier or participate in consolidation. The key is, that it will be our choice to participate, rather than having to participate by force or because we ran out of viable options".