MetroJet was a no-frills airline brand operated as a wholly owned division of US Airways from 1998 until 2001.
History
A MetroJet Boeing 737-200
After the conclusion of painstaking labor negotiations in 1997, US Airways sought to head off burgeoning competition from low-cost carriers in its strongest region, the Northeastern United States.[1] Competitor Southwest Airlines was encroaching from its base in the west as were Delta Express and AirTran Airways from the South.[2] Like them it would offer a single class of service, operate a single type of aircraft, which consisted of the Boeing 737-200, and fly a limited network, based at the airline's Baltimore hub. Like similar projects from traditional carriers, including Continental Lite, Delta Express, and Shuttle by United, it would participate in the parent airline's frequent flyer program and other systems.[3]
MetroJet operations did not improve US Airways's loss-making record. Many of MetroJet's passengers were cannibalized from other US Airways operations, such as its major presence at Ronald Reagan Washington National Airport. Its aircraft were among the oldest and least fuel efficient in US Airways's fleet, and like its parent its labor costs were among the highest in the industry. Meanwhile, it faced cutthroat competition with Southwest, its main competitor at BWI.[8] In an October 28, 2001 interview with Business Travel News, CEO David Siegel revealed that MetroJet's average cost per available seat mile was 8 cents, compared to 6 cents for Southwest and 10 cents for mainline US Airways.
After the September 11, 2001 attacks, US Airways was disproportionately affected by Washington National Airport's extended closure. The resulting financial disaster precipitated the closure of the airline's MetroJet network, which led to the closing of the subsidiary's primary operating base at Baltimore-Washington International Airport and the furloughing of thousands of employees.
US Airways invoked a force majeure clause in its labor contracts to close the operation, announced on September 24.[9][10] The airline also largely ended its Baltimore hub, which it had inherited from an earlier merger with Piedmont Airlines.[11] Once the largest carrier there, its number of scheduled flights had fallen by 60 percent by the time the last MetroJet 737 was retired in December.[citation needed]
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