Taking On SWA In Philly

Southwest Airlines is flying out of Philadelphia and, for US Airways, this means war.

The Washington Post reports US Airways, which has decided to make a do-or-die stand in Philly, is lowering walk-up fares by 40-percent and dropping Saturday-stay requirements on most flights to the City of Brotherly Love.

"When it comes to competing with low-cost carriers, we have beach-front property," Christopher L. Chiames, US Airways' senior vice president of corporate affairs, told the Post.

"What I've seen of the plans so far, I'm very optimistic about its prospects for success if properly implemented," said Bill Pollock, head of the US Airways pilots union and a US Airways board member.

The Philly shootout is expected to be the first major test for US Airways' fledgeling CEO, Bruce Lakefield, who took over Monday in the wake of David Siegel's unexpected resignation.

Exit, Stage Right -- And Don't Forget The Money

The Post reports Siegel's departure was a done deal Monday at a meeting with US Airways Board Chairman David Bronner, who also heads up Retirement Systems of Alabama, the airline's single biggest investor. While the board met in one part of a Mobile (AL) hotel, Bronner and Siegel sat down for a meeting of their own.

They talked about whether or not the 42-year old Siegel was the right man to lead the company, after losing faith among union leaders who refused to seriously negotiate a second round of cost-cutting measures. Then there was Siegel's golden parachute, worth almost $5 million, provided he step down before the end of the month. That was enough for the young executive, who resigned on the spot.

Lakefield, who's 60-years old, was elected CEO and president by a unanimous vote of the board.

Bruce is a great successor to Dave. Timing is everything. The time for Dave to be CEO ended and the time for Bruce began Monday," said the executive, who spoke to the Post only on condition he not be named. "The senior management team deeply admires Bruce Lakefield and enthusiastically supports him."

FMI: www.usairways.com