National Airlines Expanding Network

Clip · 05-13-2002, 09:11 PM

Aviation Daily
National Airlines Expanding Network, Considering 737s

Las Vegas-based National Airlines today is expected to announce a major network expansion of long- and short-haul flights that will likely include the introduction of a new aircraft type -- the Boeing 737 -- this fall.

The carrier plans to introduce one daily nonstop service from Las Vegas to Washington Dulles starting Aug. 1, in addition to resuming its one daily flight from Las Vegas to Washington National. Both routes will be operated with Boeing 757s, the airline's only aircraft type. Starting Aug. 28, the airline will add a second daily nonstop flight to Washington Dulles.

Only United currently serves the Dulles-Las Vegas route nonstop, and CEO Michael Conway believes there is a much larger market for both business and leisure passengers. Besides leisure origin-and-destination passengers traveling between the cities, Conway sees the opportunity to attract the "discerning business traveler," who is tired of paying high fares to go from the East Coast to the West.

He told The DAILY that National would try to attract transcontinental passengers, who would use Las Vegas as an alternative hub to get to Los Angeles, San Francisco or Seattle. "The savings can't be ignored any longer," he said.

In addition to boosting its transcontinental network later this year, National plans to launch intrastate nonstop service between Las Vegas and Reno. The service will begin Oct. 3 with four daily roundtrip flights.

The short flight between Nevada's major gaming centers will be a departure from the carrier's recent long-haul expansion strategy. Conway said there are several reasons National will start service on the short route, including the fact that "there is very little competition." Southwest currently operates more than 10 daily flights on the route.

More than point-to-point traffic, however, Conway said there would be more emphasis on promoting connecting opportunities.

Since American acquired Reno Air several years ago, there has been a "big drop" in flight options for travel to the East Coast, he said. Rather than connecting through AA's more congested hubs, National will promote its network with "more choice to [the] East at more affordable fares."

There also is opportunity to attract leisure passengers through packages at casinos in both Reno and Las Vegas.

Separately, the carrier on Nov. 21 will add a third daily frequency to Miami.

Conway said he hopes National will emerge from Chapter 11 bankruptcy protection this year, provided it is granted a federal loan guarantee. He said the airline has a strong business plan in place, and "may have one or two more new cities up our sleeves" that would be announced in the fourth quarter.

National plans to take delivery of three 757s this month and another two by year-end, but Conway revealed to The DAILY that the airline is in talks to acquire at least two 737-300s for use on short-haul routes.

While National has seen advantages to operating one fleet type, he said the 757s "can't be all things to all people." With a hub in the western U.S., "one airplane doesn't fit all of your needs." He noted that National's crews already have a lot of 737 pilot experience. The 757s will come from International Lease Finance Corp., but Conway didn't reveal the source of the narrowbodies.

05-13-2002, 09:16 PM

Good to hear that they are expanding. I like them, I think there a pretty good airline.

Sean1999 Ram Air TA · 05-13-2002, 10:20 PM

Hope to see National make it and bring a few flights to Orlando

Sean

TL925 · 05-15-2002, 01:27 AM

I personally think that expansion during Chapter 11 is a vey risky move. If United or whoever else exists on a route, I'm sure they'll do everything they can to rid new competition. Granted every airline is practically in a weak position right now, but I don't think that National can last very long if a price war ensues. Who knows though, hopefully I'm wrong for the sake of National.

IFTNFS · 05-16-2002, 05:32 AM

How could Southwest be considered "Very little competition", especially when they already have over 10 daily flights between Vegas and Reno? Somehow I don't think National will be flying that route for very long...

Rick

05-13-2002, 09:11 PM	#1
Clip Model Goddess Join Date: Sep 1999 Location: Portland, Oregon Age: 37 Posts: 1,313	National Airlines Expanding Network Aviation Daily National Airlines Expanding Network, Considering 737s Las Vegas-based National Airlines today is expected to announce a major network expansion of long- and short-haul flights that will likely include the introduction of a new aircraft type -- the Boeing 737 -- this fall. The carrier plans to introduce one daily nonstop service from Las Vegas to Washington Dulles starting Aug. 1, in addition to resuming its one daily flight from Las Vegas to Washington National. Both routes will be operated with Boeing 757s, the airline's only aircraft type. Starting Aug. 28, the airline will add a second daily nonstop flight to Washington Dulles. Only United currently serves the Dulles-Las Vegas route nonstop, and CEO Michael Conway believes there is a much larger market for both business and leisure passengers. Besides leisure origin-and-destination passengers traveling between the cities, Conway sees the opportunity to attract the "discerning business traveler," who is tired of paying high fares to go from the East Coast to the West. He told The DAILY that National would try to attract transcontinental passengers, who would use Las Vegas as an alternative hub to get to Los Angeles, San Francisco or Seattle. "The savings can't be ignored any longer," he said. In addition to boosting its transcontinental network later this year, National plans to launch intrastate nonstop service between Las Vegas and Reno. The service will begin Oct. 3 with four daily roundtrip flights. The short flight between Nevada's major gaming centers will be a departure from the carrier's recent long-haul expansion strategy. Conway said there are several reasons National will start service on the short route, including the fact that "there is very little competition." Southwest currently operates more than 10 daily flights on the route. More than point-to-point traffic, however, Conway said there would be more emphasis on promoting connecting opportunities. Since American acquired Reno Air several years ago, there has been a "big drop" in flight options for travel to the East Coast, he said. Rather than connecting through AA's more congested hubs, National will promote its network with "more choice to [the] East at more affordable fares." There also is opportunity to attract leisure passengers through packages at casinos in both Reno and Las Vegas. Separately, the carrier on Nov. 21 will add a third daily frequency to Miami. Conway said he hopes National will emerge from Chapter 11 bankruptcy protection this year, provided it is granted a federal loan guarantee. He said the airline has a strong business plan in place, and "may have one or two more new cities up our sleeves" that would be announced in the fourth quarter. National plans to take delivery of three 757s this month and another two by year-end, but Conway revealed to The DAILY that the airline is in talks to acquire at least two 737-300s for use on short-haul routes. While National has seen advantages to operating one fleet type, he said the 757s "can't be all things to all people." With a hub in the western U.S., "one airplane doesn't fit all of your needs." He noted that National's crews already have a lot of 737 pilot experience. The 757s will come from International Lease Finance Corp., but Conway didn't reveal the source of the narrowbodies. __________________ Jet Delta's Big Flies

05-13-2002, 10:20 PM	#3
Sean1999 Ram Air TA Senior Collector Join Date: Jan 2001 Location: Orlando, FL Posts: 249	Hope to see National make it and bring a few flights to Orlando Sean __________________ United Airlines Historian and Memorabilia Collector WAHS Member Last edited by Sean1999 Ram Air TA; 05-13-2002 at 10:30 PM.

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05-13-2002, 09:16 PM	#2
Romania is #1 Guest Posts: n/a	Good to hear that they are expanding. I like them, I think there a pretty good airline.

05-15-2002, 01:27 AM	#4
TL925 Master Collector Join Date: Jul 2000 Location: London Age: 26 Posts: 529	I personally think that expansion during Chapter 11 is a vey risky move. If United or whoever else exists on a route, I'm sure they'll do everything they can to rid new competition. Granted every airline is practically in a weak position right now, but I don't think that National can last very long if a price war ensues. Who knows though, hopefully I'm wrong for the sake of National.

05-16-2002, 05:32 AM	#5
IFTNFS Senior Collector Join Date: Jul 2000 Location: Harwich, MA, USA Age: 27 Posts: 427	How could Southwest be considered "Very little competition", especially when they already have over 10 daily flights between Vegas and Reno? Somehow I don't think National will be flying that route for very long... Rick