US Airways to consider relocating its offices

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US Airways to consider relocating its offices

PITTSBURGH (AP) =97 U.S. Sen. Arlen Specter said he plans to discuss the=20
possibility of US Airways shifting its offices to Pennsylvania in exchange=
=20
for improvements at Pittsburgh and Philadelphia airports. The senator's=20
willingness to court the carrier follows comments made by US Airways=20
president and chief executive officer David Siegel about leaving Arlington,=
=20
Va., if it doesn't start receiving better treatment from Ronald Reagan=20
Washington National Airport and Washington, D.C.-area businesses. But US=20
Airways officials on Thursday backed off the CEO's statements, saying=20
Siegel was merely noting the airline's growing popularity after emerging=20
from bankruptcy. ``This has nothing to do with where the company's=20
headquarters potentially could be relocated and everything to do with the=20
business relationships we have in the Washington area," US Airways=20
spokesman David Castleveter said.

Specter, Pennsylvania Gov. Ed Rendell and the state's congressional=20
representatives are scheduled to meet with Siegel and airline executives=20
June 11 in Washington to go over the airline's demands for improvements at=
=20
Pittsburgh and Philadelphia airports. ``Among the items we're going to talk=
=20
about is the headquarters issue," Specter said. ``I'm looking for some=20
reciprocity. We've got a lot of jobs at stake." US Airways is seeking $235=
=20
million in government aid for improvements and rent at Philadelphia=20
International Airport, plus $155 million in cost savings from Pittsburgh's=
=20
airport. Roughly half of the airline's approximately 29,000 employees are=20
based in Pennsylvania. During Wednesday's speech to the Greater Washington=
=20
Initiative, Siegel said other places have come to covet the carrier's=20
headquarters, such as majority owner Retirement Systems of Alabama and the=
=20
airline's other hubs.

``Most recently, the governor of Pennsylvania has suggested that we should=
=20
relocate to that state as part of our negotiations to maintain our hub in=20
Pittsburgh," Siegel said. Rendell was first to say he will ask US Airways=20
to move its headquarters in exchange for some of the airline's demands.=20
Siegel added that the airline remains committed to staying in the=20
Washington area. ``I am so committed to the success of US Airways that I=20
moved my wife and 12-year-old daughter here with the promise that we would=
=20
stay here at least through high school," Siegel said. U.S. Rep. Tim Murphy,=
=20
R-Allegheny, said Siegel appears to be leveraging the airline's popularity=
=20
to cut costs. ``That appears to be his style," Murphy said. ``He talks to=20
the employees and says he needs concessions, or else. He talks to the=20
airports and says he needs lower costs, or else." Rendell said Thursday he=
=20
will not want to compete with other states for the airline's headquarters.=
=20
``We're not going to get into a bidding war to put money into US Airways'=20
pocket," the governor said.

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