Two of the nation's troubled airlines announced changes yesterday for cities where they have long played a major role.þþATA Airlines said it was sharply reducing the number of cities it served from Indianapolis, its home base. It attributed the move in part to Northwest Airlines, which it said had moved in and cut fares to levels ATA could not afford to offer.þþUS Airways said it would close three customer service offices, including two outside Pittsburgh, where it is dismantling a hub. The airline said it would consolidate the operations into a center in Winston-Salem, N.C. þþATA and US Airways are among the five domestic airlines operating under bankruptcy protection. þþThough the move by US Airways had been expected, the one by ATA was a surprise. þþATA, the nation's 12th-largest airline, said it planned to serve just four cities from Indianapolis, and would cut 14 destinations. It is also eliminating three cities served from Midway Airport in Chicago.þþATA said it would keep its nonstop flights from Indianapolis to Orlando and Fort Myers in Florida as well as Las Vegas and Los Angeles. þþThe airline said it expected the changes to be complete by April 10, and estimated that about 28,000 passengers would be affected.þþATA is eliminating service on Feb. 28 from Indianapolis to LaGuardia Airport in New York, where ATA has four nonstop flights a day. ATA said it would continue to serve LaGuardia from Midway. þþThe move by ATA comes two weeks after the airline announced a code-sharing arrangement with Southwest Airlines. þþIn December, Southwest paid $117 million for some ATA assets, including 6 of its 14 gates at Midway. ATA sought bankruptcy protection on Oct. 28.þþATA is responding to a significant expansion of Indianapolis service in October by Northwest, which focused on the city as part of its ÿheartland strategy.ÿ þþBy March, Northwest will serve 22 cities from Indianapolis, where it has passed ATA to become the largest carrier. þþATA's chief financial officer, Gilbert F. Viets, said that while ATA had matched Northwest's fares, the airline felt it could not keep doing so given its financial state. þþÿThe problem is, when you keep chasing the price down and down and down,ÿ Mr. Viets said, ÿyou sell the trips for far less than what it costs to make them. It doesn't make any sense for us.ÿ þþNorthwest, however, refused to be the villain. A Northwest spokesman said the two airlines competed on only 6 of the 17 routes that ATA was eliminating. þþMr. Viets would not say how many jobs would be affected by the reduction in flights from Indianapolis, where ATA has its headquarters and maintenance base.þþUS Airways said the 940 employees affected by its moves would have the opportunity to transfer to Winston-Salem. It said employees had 45 days to decide whether to relocate or accept a severance package, available to those with at least five years of service.þþUS Airways said it would close its reservations office in Greentree, Pa., which has 785 workers; a baggage office in Findlay, Pa., with 50 workers; and a frequent-flier center in Winston-Salem, with 45 employees.þþThe airline said it expected the consolidation of offices to be completed by the end of September.þþUS Airways, the country's seventh-largest airline, filed for Chapter 11 protection in September, its second round in bankruptcy in two years. Last week, US Airways completed its bid for $1 billion in wage and benefit cuts from its union employees, the third set of concessions since 2002. The airline wants to emerge from bankruptcy protection by June 30.þþþþ
Source: NY Times
