THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, July 31, 1996 TAG: 9607310412
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY DEBBIE MESSINA, STAFF WRITER
LENGTH: 69 lines
Air South landed in Norfolk only a month ago, but the fledgling airline, which has skipped around the Southeast in search of discount-hungry markets, has already reduced its flights by a third.
Company officials said service was cut last week to improve its on-time reliability.
Air South flies to 12 cities daily with seven airplanes.
``We were spread too thin,'' said Charlie Creech, an Air South spokesman. ``It was tough to pull off. Fortunately we realized it and are taking steps to correct it.''
The carrier has gone from six flights on weekdays to four at Norfolk International Airport. Air South no longer flies to Chicago from Norfolk. And one of two flights to Jacksonville, Fla., was dropped. The airline continues to serve New York's Kennedy Airport and Charleston, S.C.
Industry analysts said the changes are necessary because the small airline was developing a black eye over tardiness and canceled flights.
``They must overcome a tremendous negative consumer image they have,'' said Michael Boyd, president of Aviation Systems Research Inc. in Colorado. ``They didn't treat customers right and they didn't have their airplanes on time.''
But in trying to remedy its reputation for canceling flights and being late, Air South at least temporarily aggravated the problem.
Many local customers are unhappy with the way the changes were handled.
``I'm really hot,'' said Randy Fiel, who said he was called at 11:30 p.m. Sunday by Air South because his family's Monday morning flight to Chicago was discontinued.
Fiel said his wife and two young children had to wait at the airport all day Monday to catch another flight on another airline. Plus, he had to pay the difference between Air South's cheap fare and the other carrier's fare.
``They take your money and leave everything else up to you,'' Fiel said. ``They just can't keep running over people. A lot of people don't have the extra $50 or $100 per ticket and they don't care.''
Air South officials said they are doing their best to book passengers on other flights or are refunding their money.
``I understand some people are not very happy and I don't blame them,'' Creech said. ``There may have been some communications problems.''
The changes come on the heels of yet another leadership shift at Air South. John Tague, an aviation consultant who had been president of American Trans Air, was named president and chief executive officer last Thursday.
He's the company's third CEO in two years. Air South has been plagued by management problems, bungled financing and flight delays.
To jump-start the company, the investment banking firm of Hambriecht & Quist for the second time invested a sizeable amount of money in the airline and has taken controlling interest. Hambrecht & Quist's first action was to choose a new leader.
The new chief executive's first action, on his first official day, was to reduce Air South's flying schedule by a third and eliminate service to Newark, N.J.
``His first thing to do is to get this thing on time,'' Creech said.
With just seven airplanes, small delays early in the day multiplied into large delays later in the day. And if one plane had to be taken out of service for mechanical or other reasons, many flights had to be canceled.
``What would start as a cold in New York would become pneumonia by the time it got to Miami,'' Creech said. ``There was no time to recover.''
Frequent changes in routes and operating schedules, however, are not unusual for upstart, low-cost airlines, one analyst said.
``It takes a while to settle down a little and see what you're capable of doing,'' said Barbara Beyer, president of Avmark Inc., in Northern Virginia.
``They were being overly optimistic and stretching themselves too thin.''
KEYWORDS: AIR SOUTH AIRLINES by CNB