US Airways sees damage from Phila. gate proposal

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US Airways sees damage from Phila. gate proposal
Thursday June 13, 7:37 PM EDT


NEW YORK, June 13 (Reuters) - US Airways Group Inc. (U
<http://money.excite.com/jsp/qt/full.jsp?time=0&symbol_search_text=U> )
said on Thursday that a proposal by a Philadelphia official to limit the
number of gates an airline may use at that city's airport would hamper
its ability to create its third largest "hub" and "irreparably damage"
its business.

A member of Philadelphia's city council has proposed a measure that
would revoke preferential or exclusive use by any airline of more than
40 percent of Philadelphia International Airport's 103 gates. Arlington,
Virginia-based US Airways said it currently has preferential or
exclusive use of 65 gates at the airport, about 63 percent of the
airport's total.

US Airways runs nearly 500 daily departures out of the airport, and the
carrier and its affiliates transported about two-thirds of the airport's
passengers last year. Pittsburgh and Charlotte are US Airways' two
largest hubs.



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21462030/site=excite.reuters/area=money.news/aamsz=336x280>

The airline was hit hard by a drop in travel on the East Coast and the
temporary closure of Washington D.C.'s Reagan National Airport after
Sept. 11, and has said it might file for bankruptcy if it cannot secure
$1 billion in loans backed mostly by the government and convince its
employees to accept lower wages.

"If this amendment to the existing ordinance is enacted, it would
severely restrict US Airways' ability to maintain and continue to
develop Philadelphia as a premier domestic and international gateway,"
the airline said in a statement.

US Airways said it currently has a lease agreement with the city of
Philadelphia that grants it use of the gates through 2006.

But the carrier would probably be forced to renegotiate all its leases,
including those in Philadelphia, if it filed for bankruptcy, US Airways
spokesman David Castelveter said on Thursday.

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