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US Airways is launching a new regional jet division that will fly out of Philadelphia and Pittsburgh called MidAtlantic Airways.
The new regional carrier, which will be based in Pittsburgh, will begin flights out of Philadelphia International Airport April 4 to Kansas City, Mo., and Syracuse, N.Y.
On May 2, MidAtlantic will add additional nonstop flights from Philadelphia to Nashville, Tenn., and Pittsburgh.
MidAtlantic will have a total of 24 routes from Philadelphia and Pittsburgh by June.
MidAtlantic will initially be using three new, 72-seat Embraer 170 jets from Brazil, and it will add routes as it gets additional jets delivered. US Airways has ordered 39 of the new jets, all of which are expected to arrive by the end of the year.
All of MidAtlantic's pilots and flight attendants will be furloughed US Airways employees. The regional airline has 244 employees, and 229 are furloughed US Airways employees.
Although US Airways is the dominant airline at Philadelphia International with 5,500 employees and 375 daily flights, it is under increasing pressure from low-cost airlines like Southwest and Frontier, which are preparing to start flights out of Philadelphia International in May.
US Airways emerged from Chapter 11 bankruptcy protection last year and has been seeking ways to cut costs as it struggles with its finances and competition from low-cost alternatives.
In a March 12 note to the US Airways board of directors that was filed along with its annual report to the Securities and Exchange Commission, the company's auditor, KPMG LLP, painted a grim picture of US Airways' financial condition.
"The company's significant recurring losses and other matters regarding, among other things, the company's ability to maintain compliance with covenants contained in various financing agreements as well as its ability to finance and operate regional jet aircraft and reduce its operating costs in order to successfully compete with low cost airlines, raise substantial doubt about its ability to continue as a going concern," the auditors said.
The new regional carrier, which will be based in Pittsburgh, will begin flights out of Philadelphia International Airport April 4 to Kansas City, Mo., and Syracuse, N.Y.
On May 2, MidAtlantic will add additional nonstop flights from Philadelphia to Nashville, Tenn., and Pittsburgh.
MidAtlantic will have a total of 24 routes from Philadelphia and Pittsburgh by June.
MidAtlantic will initially be using three new, 72-seat Embraer 170 jets from Brazil, and it will add routes as it gets additional jets delivered. US Airways has ordered 39 of the new jets, all of which are expected to arrive by the end of the year.
All of MidAtlantic's pilots and flight attendants will be furloughed US Airways employees. The regional airline has 244 employees, and 229 are furloughed US Airways employees.
Although US Airways is the dominant airline at Philadelphia International with 5,500 employees and 375 daily flights, it is under increasing pressure from low-cost airlines like Southwest and Frontier, which are preparing to start flights out of Philadelphia International in May.
US Airways emerged from Chapter 11 bankruptcy protection last year and has been seeking ways to cut costs as it struggles with its finances and competition from low-cost alternatives.
In a March 12 note to the US Airways board of directors that was filed along with its annual report to the Securities and Exchange Commission, the company's auditor, KPMG LLP, painted a grim picture of US Airways' financial condition.
"The company's significant recurring losses and other matters regarding, among other things, the company's ability to maintain compliance with covenants contained in various financing agreements as well as its ability to finance and operate regional jet aircraft and reduce its operating costs in order to successfully compete with low cost airlines, raise substantial doubt about its ability to continue as a going concern," the auditors said.
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