Worcester Telegram & Gazette
Friday, August 2, 2002
Airline ends local service on Sept. 4
By Lisa Eckelbecker
Telegram & Gazette Staff
WORCESTER-- American Eagle reported yesterday that it would end flights to Worcester Regional Airport on Sept. 4, concluding months of struggle to boost travel on the Worcester-Chicago route.
The airline, the regional affiliate of American Airlines, said it decided to shut the service after losing more than $1 million during the past year.
“We still believe Worcester is promising long-term,” Tom Bacon, a senior vice president for American Eagle, said in a written statement. “But given the need to improve our financial performance in the near term, we simply could not continue to lose substantial amounts of money on the route.”
American Eagle did not return a message seeking further comment.
Government officials and others said the news came as little surprise in light of the nation's economic downturn and American Airlines' financial losses since the Sept. 11 terrorist attacks last year.
American Eagle's decision is “disappointing but not surprising when you consider the losses that they've had in the Worcester market over the past year,” said Barbara E. Platt, a spokeswoman for Massport. “We'll continue to talk to American Eagle about returning to Worcester.”
American Eagle's departure will leave the beleaguered airport with two
airlines: ASA/The Delta Connection, with service to Atlanta, and US Airways
Express, which flies to Philadelphia.
American Eagle's concerns about the Worcester service were well known. The carrier dropped one daily flight to Chicago in February, leaving just one flight per day. Then, in April, American Eagle slashed business fares in an attempt to attract more business travelers.
The moves apparently had little effect. Total passengers on American Eagle at the Worcester airport fell from 1,904 in January to 1,033 in June. Passengers filled about 43 percent of American Eagle's seats in June, according to Massport.
Meanwhile, American Airlines has been grappling with its own problems. AMR Corp., the parent company of American Airlines, lost $1.1 billion in the first six months of this year, twice the $550 million it lost during the same period a year ago.
American Eagle's revenues declined to $649 million during the first half of this year, from $763 million a year earlier.
U.S. Rep. James P. McGovern, D-Worcester, and the state's two Democratic senators, Edward M. Kennedy and John F. Kerry, had urged American Eagle earlier this year to retain service to the Worcester airport. But the carrier began signaling in recent weeks that it would discontinue the daily flights, said Edward M. Augustus Jr., chief of staff to Mr. McGovern.
“Unfortunately, the economic picture hasn't changed for them,” Mr. Augustus said. “It's my understanding the door is open for the future, for them coming back to service if circumstances change.”
Massport will now concentrate its energies on supporting the remaining two carriers at Worcester Regional Airport, Ms. Platt said. ASA/The Delta Connection and US Airways Express both reduced service after Sept. 11 and both have had varying passenger loads this year.
ASA/The Delta Connection had 1,951 passengers at the Worcester airport in June for a load factor of 74 percent, while US Airways Express had 2,934 passengers for a load factor of 49 percent.
Paul V. LaCava, assistant city manager, said American Eagle's decision does not shake city officials' faith in the airport.
“It's always disappointing for people such as our congressman and the
number of people that have been advocating for the airport when something like
this happens,” Mr. LaCava said. “I believe that it tells us that we need to
continue our efforts as the economy slowly improves.”
Copyright 2002 Worcester Telegram & Gazette Corp.
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