Pa. Governor wants US Airways to move headquarters from Virginia to Keystone State

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Pa. Governor wants US Airways to move headquarters from Virginia to
Keystone State
By The Associated Press

With US Airways seeking $390 million in government aid for its operations
in Philadelphia and Pittsburgh, Pennsylvania Gov. Ed Rendell said he will
ask the airline to move its headquarters to his state. Nearly half of the
airline's approximately 29,000 employees are based in Pennsylvania. US
Airways has 780 employees at its headquarters Arlington, Va. "We've got to
develop a strategy. We have to develop what our wish list is. And then we
have to develop a negotiating position," Rendell said this week. "We are
going to put a lot of things on the table." Philadelphia and Pittsburgh are
two of US Airways' three biggest hubs, behind only Charlotte, N.C. US
Airways employs more than 7,700 workers in Pittsburgh and nearly 5,600 in
Philadelphia. The governor hopes to schedule a meeting this month with
airline officials and officials from the two cities, spokeswoman Kate
Philips said. "He's going to talk to them about their role as a corporate
citizen in Pennsylvania," Philips said.

A spokesman for US Airways, which emerged from bankruptcy protection two
weeks ago, declined to comment on the proposed headquarters move. US
Airways wants $140 million in rent relief at Philadelphia's airport and $95
million in facilities and runway improvements, the Pittsburgh Post-Gazette
reported. "We are reviewing and considering US Airways' request for
Philadelphia, but no decisions have been made to date," Philadelphia
airport spokesman Mark Pesce said in a statement.
Since 1998, Philadelphia International Airport has invested more than $1
billion in improvements that mainly benefit US Airways, including a $550
million international terminal that is scheduled to open on May 2. In
Pittsburgh, the airline also wants $155 million dollars in improvements and
savings. Without them, the airline said it might not base its new regional
jet carrier, Mid-Atlantic Airways, in Pittsburgh.

Authority officials in Pittsburgh said they likely will try to make up any
lost revenue from US Airways by charging higher parking rates and
increasing passenger ticket fees. The airport tacks on a $3-per-ticket fee
for every passenger at the airport, but a study showed the airport collects
less from that fee than seven other benchmark airports. Authority officials
said major non-airline revenues, including parking fees and investment
income, dropped from $81 million in 2001 to $73 million last year.


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