Shuttle America, US Airways team up
Affiliation to increase flights out of Hanscom

By Stephanie Stoughton, Globe Staff, 10/10/2001

Shuttle America Inc., which is emerging from bankruptcy, yesterday announced
an affiliation with US Airways that will increase the number of commercial
flights out of Hanscom Field.

The airline has attracted local opposition ever since it began flying out of
the small Bedford airport two years ago. Now, beginning Oct. 24, Shuttle
America will offer five round-trip flights on business days between Hanscom
and US Airways's hub in Philadelphia.

Shifting its resources, the small carrier will reduce the number of weekday
flights between Bedford and Trenton Mercer Airport in New Jersey, from seven
to six. In the next year, though, consumers will probably see more planes
and more air service.

''Coming out of our restructuring, it's a whole new ballgame for us,'' said
Mark R. Cestari, marketing vice president for Windsor Locks, Conn.-based
Shuttle America. ''We expect to get on a very healthy growth track
immediately.''

Under the agreement, Shuttle America will become a US Airways Express
carrier, allowing passengers to make connections to the larger carrier's
flights at Philadelphia International Airport. Customers also will be able
to buy tickets from US Airways agents and earn frequent-flier miles from the
airline.

Shuttle America, which began flying out of Hanscom in September 1999, had as
many as 18 daily departures from the airport before its finances began to
crumble, leading to its April filing for bankruptcy protection. In the past
three years, the privately held carrier has lost more than $10 million.

But with backing from Wexford Capital LLC of Greenwich, Conn., Shuttle
America is in the process of emerging from bankruptcy protection. Wexford
has another connection to US Airways thorugh Indianapolis-based Chautauqua
Airlines, in which Wexford holds an interest. US Airways has a code-sharing
agreement with the regional carrier.

Shuttle America now plans to expand its fleet, which today consists of one
50-seat turboprop aircraft and two 37-seat planes.

More planes will be needed, especially if Shuttle America begins flying
again to LaGuardia Airport. Last year, the carrier was granted 14 slots at
the New York airport, but it suspended service to the city shortly before
its bankruptcy filing.

''We still have the rights to fly those 14 flights, and we hope to do so
starting in December of this year,'' Cestari said.

In June, US Airways dropped plans to add service to Hanscom in the face of
community opposition. But airline officials said US Airways had long viewed
Hanscom as an alternative to congested Logan Airport, where it is the
largest single passenger carrier.

''This is something that was contemplated for some time,'' said David
Castelveter, a spokesman for Arlington, Va.-based US Airways Group Inc.
''Our decision was based upon Shuttle America's years of experience.''

Shuttle America executives expect resistance from residents who say
Hanscom's development will generate more noise and auto traffic.

And indeed, some community leaders said they were disappointed by
yesterday's news.

''Obviously, the impact of adding five flights a day is small,'' said
Michael Squillante, a Waltham city councilor who opposes Hanscom's growth.
''But there's a clear trend. ... Little by little, they'll turn it into a
major airport. The next thing, it will be 24 hours a day, with operations
like Federal Express. That's really when it will get bad.''

Airline officials said yesterday's announcement had no connection to the
Sept. 11 terrorist attacks and the ensuing slowdown in air travel. Hanscom
and Shuttle America may have escaped much of the backlash.

Although up-to-date figures were not available, Hanscom's total departures
and arrivals will probably be down because of continuing restrictions on
small aircraft using visual flight rules. But a spokesman for Massport,
which manages Hanscom, said there has been a notable increase in corporate
flights out of the airport.

At the same time, Shuttle America said its planes have been carrying more
passengers in recent weeks, perhaps because travelers wanted to avoid the
delays at larger airports. For short trips from Boston to New York, for
example, a long wait at the airport diminishes the value of Logan's
convenience.

''I think there were some opportunities created by the slowdown at the big
airports,'' said Shuttle America's Cestari.

This story ran on page D3 of the Boston Globe on 10/10/2001.
© Copyright 2001 Globe Newspaper Company.
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