One of the conditions of CARES Act payroll support was that airlines had to continue to serve all of the cities they’ve flown to, unless they received an exemption from the Department of Transportation. That requirement ends October 1, unless the government passes a second airline bailout that includes an extension of the service mandate.
American Airlines is suspending service to 15 cities effective October 7, and CARES Act subsidies are mentioned 3 times in the release that’s just 151 words. The airline makes clear that if a second bailout passes they’re prepared to serve these markets.
Cities that will lose American Airlines service:
City | Airport Code |
---|---|
Del Rio, Texas | DRT |
Dubuque, Iowa | DBQ |
Florence, S.C. | FLO |
Greenville, N.C. | PGV |
Huntington, W.Va. | HTS |
Joplin, Mo. | JLN |
Kalamazoo/Battle Creek, Mich. | AZO |
Lake Charles, La. | LCH |
New Haven, Conn. | HVN |
New Windsor, N.Y. | SWF |
Roswell, N.M. | ROW |
Sioux City, Iowa | SUX |
Springfield, Ill. | SPI |
Stillwater, Okla. | SWO |
Williamsport, Pa. | IPT |
While it makes sense to end service, and the airline had previously leaked that they could drop as many as 30 cities, this is an economic decision that’s being used as leverage for more government support.
They suggest they can continue to serve these markets with more government money – but they may cut even more cities without it. Schedule changes will go into effect August 29 for flights departing October 7 through November 3.
So once again we the taxpayers are being called upon to fund yet another bottomless pit? When do we draw the line? At some point and this is not a political comment, we need to stop and think about what services we really need and which we can do with out. I am terribly fearful of what 2021/22 will look like economy wise. There are too many industries that will take years to come back into some reasonable production levels
Unbearable to think they would make financially responsible service adjustments!
You and I MUST give them another free bailout funded by our kids and grandkids. And if that doesn’t work, there’s more where that came from.
I’m sure that when things eventually improve the directors and shareholders–out of the generosity of their hearts–will vote to give us back what we provided them, just as we collectively were willing to help them out.
Has anyone in government ever looked at these routes? Huntington, WV is a 2 hr l drive to Lexington, KY; 2.5 HR drive to Columbus and Dayton OH. The Huntington route is from CLT on an ERJ-145 1x daily, mid-morning. Is this flight really that imperative to maintain? Allegiant is using the same airport with flights going all over the US. The only reason I can see AA wanting to keep this flight is for perishable cargo delivery, ie, donor organs. But, a 2 hr drive to Lexington isn’t asking too much.
I guess the real question is, what political bigwig lives near Huntington that is keeping this flight alive?
Many of the airports on this list are a quick drive away from a larger one, making the need for a subsidy quite questionable.
That said, one of the coolest flights AA flights I have taken was Springfield, IL to STL. It was a small prop with no door to the cockpit. I was sitting in row 1 and could look over the pilots shoulder. It was badass.
Hmm, 15 cities in 15 different states. That’s 30 senators. Come on American, you could have figured out how to threaten to drop service to a city in each of America’s great 50 states.
@KimmieA or a 1hr drive to Charleston, WV which also has service to Charlotte
Nothing more than a mafia-style shakedown!
Rather than bailing out a industry, better off with better unemployment and access to job retraining. Some of these smaller cities I suspect have shuttle van service that one can use.
New Haven? Drive to Hartford or NYC. Williamsport? Drive to State College, Harrisburg or Wilkes Barre.
Cry me a river. Pretty weak leverage to beg for gov’t money.
The truth is, the aviation system is going to take years to get back to its previous levels….so why is anyone surprised that these fringe service areas are getting cut back…..if and when there is a market, the flights will come back, but why should anyone lose money on these flights…..welcome to the new normal
Greenville, NC is also 1h 40min drive to CLT, which is already an AA hub. None of this looks worth another bailout. Cut the bonuses instead.
This virus has wrecked havoc on a great many of us. How about the leadership and major stock holders try something different that the rest of us reluctantly do when between the rock and hard place. We sell our cd’s, stock, hit the retirement plan, our savings, etc., to stay afloat. Perhaps you can sell your stocks, gold, hit your accounts, etc., to keep the company afloat. Its getting tiring that the rest of us have to keeping you solvent at our expense.
Greenville, NC (PGV) is also a 1 hour drive to RDU!
Airlines are asking for balilouts, while they jam us closer together, on thinner seats, while removing seatback displays and other amenities and cut services? NO sympathy here!
Managment isn’t God’s gift to business and is not *entitled* to remain in charge. They should be replaced with people who understand that the business model should be customer-centric. (Or maybe we should just re-nationalize them all.)
And then there are the stockholders. Again, there’s no entitlement nor should they expect to be bailed out. If you buy stock, you take on risk; and if management screws up, well, you’re an owner and you made a bad judgment. It’s probably time for some of these companies to go belly-up and have their assets sold at pennies on the dollar to someone who can make money with that lower asset cost and a more productive business model. Time to take a look in the mirror.
Tom your sense of sarcasm appears to be In Full Swing concerning the return of Bailout Funds.
You should try Stand Up Comedy.
These routes, if really deemed that necessary, is what the Essential Air Services ( EAS) program was established for.
Enough with full salary replacement for some routes that just are not necessary.
Jimmy — no, two in Iowa. What’s up with that? (I resemble that remark.)