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October 24, 2004

America West

As I continue to post and define some of these major and minor air carriers I am forced to consider America West Airlines AWA. Although America West offers some of the lowest fares in particular markets that fact doesn't mean it does so out of free will. It's because Southwest Airlines LUV, U.S.'s #6 carrier, and known discounter operates its two largest numbers of daily flights out of America West's two major airports. America West is based out of Phoenix, and has a hub there as well as in Las Vegas. Not the best sites for hubs geographically. America West is flying new aircraft such as Airbus's A320 series and some older 737's. They also fly 757's on longer routes with more traffic.

America West has recently tried to diversify itself from dependence on their southwest routes and have started transcon flights between Washington D.C., Boston, and New York City to San Francisco and Los Angeles. They have also opened a new mini-hub in Los Angeles with flights to 10 cities (3 in Mexico, the 3 transcons I just mentioned, 2 in Canada, and 2 hubs). However, the vast majority of its flights still involve its Phoenix and Las Vegas hubs. They have learned to compete with Southwest, although they have had a difficult time doing so. Many of the fares that they match Southwest on are ones at undesirable times (Sure, I'll arrive at 2:30 AM).

America West was able to get $380 million in Federal Loan Guarantees after 9-11 and $110 million in cash. Recently, they have been in merger talks with struggling #10 carrier American Trans Air AAI which is competing at Chicago's Midway airport with Southwest, and it's something that America West knows how to do. In the future, America West is trying to emulate Southwest's inflight amenities (with the addition of tray-table advertising, which Southwest doesn't have), while flying to more exotic destinations such as Anchorage and San Jose, Costa Rica. The success of this strategy is up for debate, as other carriers such as Alaska, Frontier, and Spirit are trying to jump on the Mexico and Latin America bandwagons too.

October 24, 2004 in America West, Carrier Overview, Low Cost Carriers, The Bulletin! | Permalink