Airport authority says US Airways pullout would cost $1.5 billion PITTSBURGH (AP) ? The Allegheny County Airport Authority will lose almost $1.5 billion if it can't renegotiate leases and other agreements with US Airways at Pittsburgh International Airport, the agency said in a bankruptcy filing Thursday. The documents, known as a "proofs of claim," were expected, since without them the authority would lose any damage claims if the US Airways leaves Pittsburgh or doesn't renegotiate all of the pacts. But county authorities hadn't publicized how much they stood to lose if US Airways leaves the airport. Although bond insurance would cover most or all of the loss, the hit would most likely hurt the county's bond rating. "Obviously, we hope that this does not occur and we will continue our efforts to work with US Airways as well as county, state and federal officials to address the issues US Airways has raised," said Glenn Mahone, chairman of the authority. "The authority is obligated, however, to file proofs of claim to protect the authority's interest under a worst-case scenario." As it emerged from Chapter 11 protection last month, the airline gave the authority a four-page list of rejected contracts or leases it filed with its bankruptcy recovery plan. The contracts covered everything from hangar space to wheelchair and skycap services to fire-extinguisher maintenance. The airline is one of the region's largest employers, providing some 8,700 jobs, and accounts for about 80 percent of its air traffic. US Airways has asked for rent concessions at Philadelphia International Airport, but it didn't reject any leases or contracts there or in Charlotte, N.C., its other major hub. County officials have taken that to mean that the airline is positioning for a clean break from Pittsburgh if it doesn't get new leases and up to $155 million in improvements to the airport. "This is part of the normal bankruptcy process," US Airways spokesman David Castelveter said of Thursday's filings. "We have an enormous debt load in Pittsburgh, it's extremely expensive to operate in Pittsburgh, and we'll be working with the state and county to bring down our costs." The airline has said it still hopes Pittsburgh will be the hub of its new regional jet service, Mid-Atlantic Airways. Pittsburgh is hobbled by $673 million debt resulting from more than $1 billion in bonds floated to pay for a new passenger terminal and other airport improvements done in the 1990s at the request of US Airways. Under an Airline Operating Agreement, US Airways agreed to pay a proportional share of expenses at the airport until that debt was paid. Almost half of the airport's $135 million annual operating budget ? $62 million ? goes for paying off the bonds. And most of US Airways' costs in Pittsburgh, about $50 million, comes from the airline's share of the debt payments. US Airways paid $67.1 million in 2002 rental charges and landing fees last year. *************************************************** 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.pscutt.com TnT Webdirectory: http://search.co.tt *********************************************************