PSA Airlines, a wholly owned subsidiary of US Airways [Nasdaq: UAIR], will begin its transition to an all-regional jet (RJ) fleet when it launches service in December using new 50-seat Bombardier [Toronto: BBDb] CRJ-200s. PSA took delivery of its first new CRJ-200 on Oct. 28 and the aircraft is scheduled to enter service on PSA's route network on Dec. 14.

"This truly is an historic milestone for US Airways Group as we take delivery of PSA's first regional jet, implementing another key element of the company's restructuring plan," said US Airways Express President Bruce Ashby. "The CRJ-200 is an outstanding airplane with a proven and successful track record in RJ operations within North America and in markets all over the world."

US Airways emerged from bankruptcy protection six months ago, and the airline has steadily lost money since then.

"This aircraft will strengthen US Airways' competitive position significantly, while providing enhanced benefits for PSA's customers in terms of cabin comfort and performance," Ashby said.

The major airlines are continuing to turn to their regional partners for profitable service in many markets, boosting the popularity of RJs that started service a little more than a decade ago.

"Now, US Airways will realize the benefits of high performance, low operating costs and the family commonality advantages of the Bombardier CRJ family," said Steven Ridolfi, president of Bombardier Aerospace Regional Aircraft.

"I am delighted for our company, our employees and our customers, and we are especially grateful for the commitment and support we have received from the City of Dayton," PSA's President and CEO Dick Pfennig said.

The city of Dayton, Ohio, where PSA is based, is spending $2.8 million to refurbish and remodel PSA's aviation facilities at Dayton International Airport.

US Airways Express flights linking PSA's base in Dayton with Washington's Reagan National Airport and New York's LaGuardia Airport will be among the carrier's initial routes served by the CRJ-200, replacing existing 32-seat Dornier 328 turboprop aircraft.

Also beginning in December, PSA will introduce the CRJ-200 on its routes between Dayton and two of US Airways' major hubs -- Philadelphia and Pittsburgh. Connecting service through Philadelphia will operate to Ottawa, Canada, and Richmond, Va.; and through Pittsburgh to Wilkes Barre/Scranton, Pa.

The CRJ-200 will be phased into service on additional PSA routes based on the delivery schedule of new aircraft. In all, PSA will take delivery of 60 CRJ-200s as part of US Airways' RJ order announced in May 2003 (CRAN, May 19).

PSA's first two CRJ-200s were scheduled to arrive last week and will undergo statutory proving flights and training requirements before entering into service. Another two aircraft are scheduled to arrive this month, and deliveries will continue at the rate of about three aircraft per month until spring 2005.

"The growth of RJ operations is pivotal to the future of US Airways, enabling us to compete more effectively in those markets we serve, to maximize new route opportunities, and offer our customers heightened levels of comfort and convenience," Ashby said. "PSA will undertake a key role in this development."

The completion of PSA's CRJ-200 deliveries will double the size of the carrier's current fleet, while offering a three-fold increase in passenger capacity, the carrier said. Its expansion will create more than 500 new jobs, including pilots, flight attendants and mechanics.

Training programs have already begun for pilots, flight attendants, mechanics and flight dispatchers, and PSA has moved into a new state-of-the-art, 10,000-square-foot training facility adjacent to its headquarters at Dayton International Airport.

The facility, which utilizes the second floor of the 156-room Dayton Airport Hotel, was constructed by the city as part of the $2.8 million remodeling project.

PSA currently operates 208 flights daily, serving 31 destinations in the Eastern United States and Canada. The airline employs 1,550 people.

>>Contact: Dick Pfennig, PSA, 937-454-5855; David Castelveter, US Airways, 703-872-5100.<<