Article from bizjournals.com: Rendell may ask US Airways to move headquarters

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Hello from bizjournals.com! Bill Hough (psa188@xxxxxxxx) thought you might
like the following article from Pittsburgh Business Times:


Rendell may ask US Airways to move headquarters

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   Pennsylvania Gov. Ed Rendell could push for US Airways to base its
   headquarters in the Keystone State, in return for lease concessions and
   state funding for improvements at airports in Pittsburgh and
   Philadelphia, where the airline operates two of its largest hubs.

   According to a local published report, Mr. Rendell said US Airways
   should move its corporate offices here from Arlington, Va., as part of
   the state's agreement to help with $155 million of improvements at
   Pittsburgh International Airport and $235 million at Philadelphia
   International Airport.

   Included in the requests apparently is $40 million for a maintenance and
   training facility for the airline's new regional carrier, MidAtlantic
   Airways, which is expected to be based in Pittsburgh.

   A spokesman for Mr. Rendell was not immediately available for comment.

   David Castelveter, a US Airways spokesman, declined to say whether the
   airline would consider such a move, in return for lease concessions and
   financial assistance. He also declined to say when airline officials
   will next meet with local and state elected officials to discuss the
   lease and improvements.

   US Airways CEO David Siegel has already met at least once with Allegheny
   County Executive Jim Roddey and the airline has said it has also
   initiated dialogue with Mr. Rendell. Pittsburgh is the county seat for
   Allegheny County.

   "All of these issues are issues that will be discussed in private ...
   with the county executive, as well as Gov. Rendell and his staff," Mr.
   Castelveter said. "We'll negotiate, and when there's something to tell,
   we'll tell you."

   Mr. Siegel informed Allegheny County officials last month that the
   airline had rejected its current lease as part of its successful Chapter
   11 bankruptcy restructuring and would seek to negotiate a new one that
   would reduce its operating costs.

   He set a Jan. 4, 2004, deadline for reaching an agreement. The airline
   would continue to pay its current rates until that date, but would
   reject the lease on Jan. 5 if a new agreement was not in place.

   Mr. Siegel also told Allegheny County officials that US Airways could
   eliminate Pittsburgh as a hub, if it does not realize unspecified
   reduced lease costs.

   US Airways is Pittsburgh's dominant carrier and, with more than 7,700
   local employees, the airline is one of Western Pennsylvania's largest
   employers.

   The presence of MidAtlantic is expected to create about 500 jobs, but
   the regional carrier wouldn't have the economic impact that its parent
   has on Pittsburgh International.

   US Airways is responsible for 90 percent of the airport's traffic and 85
   percent of its annual bond debt.

   In one form or another, the airline has been operating in Pennsylvania
   for more than 60 years. US Airways initially was based in Wilmington,
   Del., from 1939 until 1949, Mr. Castelveter said.

   In 1949, it moved into space inside an airplane hangar at
   then-Washington National Airport, now called Ronald Reagan Washington
   National. Forty years later, US Airways moved to its current location in
   the Crystal City section of Arlington, Va.

   Mr. Castelveter said the airline leases its current headquarters
   building, but he declined to disclose the terms or length of the
   existing lease.



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http://pittsburgh.bizjournals.com/pittsburgh/stories/2003/04/07/daily55.html

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