Roddey sees a smaller US Airways hub for Pittsburgh

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Roddey sees a smaller US Airways hub for Pittsburgh
Wednesday, June 04, 2003
By Frank Reeves, Post-Gazette Staff Writer

Allegheny County Chief Executive Jim Roddey said yesterday his goal in
upcoming negotiations with US Airways will be to keep Pittsburgh
International Airport as a hub, at least on a scaled-back basis. Asked to
elaborate, Roddey said he hoped that US Airways would retain Pittsburgh as
a hub for its regional jet operations. He expected that this would result
in fewer mainline flights but a large increase in the number of flights
flown by smaller regional jets. With Pittsburgh no longer "a fortress hub"
for US Airways, Roddey said he believed some low-cost carriers such as
Southwest or JetBlue would begin offering service from Pittsburgh
International. This could result in more competition on such heavily
traveled routes as New York or Chicago. "This outcome is the best we can
hope for," Roddey said.

In anticipation of talks next week in Washington, D.C., between state
officials and US Airways Chief Executive Officer David Siegel, Roddey sent
Gov. Ed Rendell the Airport Authority's recommendations for aid to US
Airways and cost savings at the Pittsburgh airport. Philadelphia officials
already had submitted their requests to the governor on ways to cut costs
at the Philadelphia International Airport. Without divulging any details,
Roddey said the Airport Authority's recommendations "will show US Airways
how to reduce its costs." Next week's summit follows US Airways' decision,
announced minutes before emerging from bankruptcy protection in March, to
cancel its leases at Pittsburgh International effective next January
because, it said, the airport's costs were too high versus comparable hubs
such as Cincinnati and Charlotte, N.C. Under its current leases, the
airline pays about $62 million annually, most of which goes toward
servicing the airport's debt.

Roddey said he hoped negotiations with US Airways over a new lease at
Pittsburgh International could be completed by the end of the summer. "I
think that US Airways, as well, would like to see it resolved by then," he
said. US Airways spokesman David Castelveter would say only that the
carrier was "anxious to get the issue resolved" before the January 2004
deadline. Last month, Rendell and the state's two U.S. senators,
Republicans Arlen Specter and Rick Santorum, invited Siegel to a meeting to
discuss US Airways' request for cost-saving reductions and millions of
dollars in improvements at the Pittsburgh and Philadelphia airports. Roddey
said he didn't expect that the June 11 meeting would result in a final
agreement between US Airways and the government officials. Instead, he said
he hoped the outcome of the meeting would be a commitment from Rendell and
US Airways "to negotiate around the clock" until the issues are resolved.

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