Pittsburgh: US Airways must give flight, job assurances for aid

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Pittsburgh: US Airways must give flight, job assurances for aid

IMPERIAL, Pa. (AP) =97 If US Airways wants hundreds of millions of dollars=
 in=20
rent relief and airport improvements in Pittsburgh and Philadelphia, it=20
will have to commit to maintaining a certain number of flights and jobs at=
=20
Pittsburgh International Airport, Allegheny County Executive Jim Roddey=20
said. Roddey made the comments during Friday's taping of KD/PG Sunday, a=20
public affairs show in Pittsburgh aired on KDKA-TV, which produces the show=
=20
in conjunction with the Pittsburgh Post-Gazette.

Gov. Ed Rendell and regional leaders want the job and flight assurances as=
=20
proof of US Airways' commitment to the area. The state's proposal will be=20
delivered to US Airways officials on Wednesday at a meeting brokered by=20
U.S. Sen. Arlen Specter, R-Pa. "It will be a test for US Airways, whether=20
or not they really have any intention at all of staying here because we're=
=20
going to give them an incentive to do that," Roddey said, referring to the=
=20
Pittsburgh airport. "If they walk away from that, then probably we will=20
learn that they probably had no intention of staying here." Roddey said=20
Pennsylvania officials want US Airways to commit to keeping nearly all of=20
its current jobs in Pittsburgh, and to increase its daily flights from 400=
=20
now to about 500 in exchange for concessions the airline wants at both=20
airports.

About half of US Airways 29,000 employees are based in Pennsylvania,=20
including nearly 9,000 near Pittsburgh. The airline has said it wants to=20
drastically cut its $62 million in yearly costs at Pittsburgh International=
=20
=97 about $50 million of which is debt payments on the 11-year-old airport.=
=20
It also wants $140 million in rent relief at Philadelphia International=20
Airport over the next five years and about $250 million in improvements to=
=20
both airports. US Airways is expected to remain a major player in=20
Philadelphia, but it could drastically cut service or pull out of=20
Pittsburgh altogether if it doesn't get the concessions. The airline=20
canceled its leases at the Pittsburgh airport shortly before emerging from=
=20
Chapter 11 bankruptcy protection in March, but kept its Philadelphia leases.

US Airways spokesman David Castelveter would not say whether the airline=20
would consider making the commitments Roddey and state officials are=20
seeking. Roddey did not say how officials planned to cut the airport's=20
remaining $673 million debt =97 or US Airways' share of paying for it. US=20
Airways chief executive officer David Siegel has said the debt needs to be=
=20
cut by about $500 million for the airline's Pittsburgh costs to drop to=20
acceptable levels. Michael Boyd, a nationally known aviation consultant=20
from Colorado, said he is not sure that an airline can make the type of=20
commitments Roddey wants, given the industry's uncertainty since the Sept.=
=20
11 terrorist attacks. "It's very hard to ask an airline to make a=20
commitment regarding routes, passenger levels and employees," Boyd said.=20
"It's just a tough thing to do."


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