US Airways warns Pittsburgh hub could go PITTSBURGH (AP) =97 US Airways has warned that it could pull out of=20 Pittsburgh, its most costly hub, if further cost-cutting is unsuccessful=20 and it needs to scale back to two national hubs, Allegheny County's top=20 elected official says. The warning came Friday as US Airways officials met= =20 with representatives of Pittsburgh and Allegheny County in the first talks= =20 on the airline's bid to negotiate less costly leases, county Chief=20 Executive Jim Roddey said. Roddey, who attended the meeting, said US=20 Airways canceled its lease at Pittsburgh's airport, which is the costliest= =20 of the airline's three hubs, which also include Philadelphia and Charlotte,= =20 N.C. "Pittsburgh was the only place where they canceled the lease, and they= =20 have done that because if they have to go to two hubs because of cost, that= =20 Pittsburgh would be the hub they would sacrifice," Roddey said. US Airways,= =20 the nation's seventh-largest airline, revealed plans to renegotiate leases= =20 late Sunday night =97 the night before it emerged from bankruptcy with=20 promises to cut annual costs and turn a profit as early as next year. Pittsburgh is the Arlington, Va.-based airline's costliest hub; the average= =20 cost per passenger is $7 =97 more than double the $3 per passenger cost at= =20 Charlotte, Roddey said. Roddey said US Airways Chief Executive Officer=20 David Siegel gave a target of how much officials would need to reduce costs= =20 at the airport but declined to reveal the figures, citing the ongoing=20 negotiations. US Airways officials declined to discuss the negotiations, saying they=20 would not "debate this issue in the press." "We'll continue discussions and= =20 negotiations with Allegheny County until we can reach an agreement that=20 enables us to reduce our cost structure to the point where we can sustain=20 regular jet operations in Pittsburgh," said spokesman David Castelveter.=20 Pittsburgh is hobbled by $673 million debt resulting from more than $1=20 billion in bonds used to pay for a new passenger terminal and other airport= =20 improvements that were done in the 1990s at the request of US Airways,=20 Roddey said. Almost half of the airport's $135 million annual operating budget =97 $62=20 million =97 is used toward paying off the bonds. Most of U.S. Airways costs in Pittsburgh, about $50 million, comes from the= =20 airline's share of the debt payments. US Airways paid $67.1 million in 2002= =20 rental charges and landing fees to the Allegheny County Airport Authority,= =20 which manages the Pittsburgh airport. "From an operational point of view,=20 if you take out the debt service, we are much more efficient than either=20 Charlotte or Philadelphia. ... It's the debt service that is hurting,"=20 Roddey said. The debt could also dissuade other airlines from replacing US= =20 Airways if the airline leaves, Roddey said. Roddey conceded there was=20 little leeway to reduce costs, especially the debt, but cost-cutting could= =20 include refinancing the bonds, renegotiating contracts with airport workers= =20 or help from the state. Roddey said he talked to Gov. Ed Rendell about a statewide plan to reduce=20 costs at both Pittsburgh and Philadelphia. Half of the airline's 34,000=20 employees work in Pennsylvania. In Washington, Pennsylvania lawmakers=20 curtly reminded US Airways of past congressional help, while trying to aid= =20 the airline further. For months, Sens. Arlen Specter and Rick Santorum, both R-Pa., tried to=20 ease the airline's financial burdens with legislation to revise federal tax= =20 laws and give US Airways an extraordinary 30-year cushion to pay $3.1=20 billion in employee pension obligations. On Thursday, Pittsburgh-area=20 Republican Melissa Hart, and fellow Pittsburgh-area lawmakers Reps. Mike=20 Doyle, D-Pa., and Tim Murphy, R-Pa., voted for a House spending bill to=20 give airlines $3.2 billion in federal assistance. US Airways also received= =20 a critical $900 million loan guaranteed by the federal government Monday=20 after it left bankruptcy. Doyle said lawmakers were "frustrated" over US=20 Airways' negotiation plans, but "that's water over the dam now, and what=20 we're all concerned about at this point is discussion about how to keep=20 Pittsburgh a hub. "Our feelings don't stay hurt for long," Doyle said. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: http://www.carstt.com TnT Webdirectory: http://search.co.tt *********************************************************