Pennsylvania leaders offer $263 million carrot to keep US Airways hub WASHINGTON (AP) =97 Pennsylvania's top officials on Wednesday offered $263.9= =20 million in airport investments over five years to persuade US Airways to=20 keep its hub in Pittsburgh, a plan quickly deemed a "good-faith effort" by= =20 the airline's chief. But US Airways chief executive officer David Siegel=20 said the offer was only the opening step in negotiations beginning=20 Thursday, and bluntly said he could not promise to accept it. "Absolutely=20 not," Siegel said when asked if he could immediately commit to remaining at= =20 Pittsburgh International Airport. "What we're committing to is a process to= =20 work very hard, and I would define success as finding a resolution where we= =20 can stay in Pittsburgh, where it works for U.S. Airways and works for=20 Pennsylvania. "The goal is to stay," he added The offer was made during a=20 90-minute meeting in Washington between Siegel and top Pennsylvania=20 officials, including Democratic Gov. Ed Rendell, Republican Sens. Arlen=20 Specter and Rick Santorum, and 14 of the state's 19 House members. US Airways, which emerged from bankruptcy in late March, has said it needs= =20 roughly $864 million worth of investments over the next five years to=20 maintain current service levels in Pennsylvania. Rendell, who drew up the=20 proposal, said that amount far exceeds what the public can invest. His plan= =20 =97 a mix of federal, state and local funding =97 would upgrade hub= terminals,=20 hangars and other facilities, and lower operating costs at both the=20 Pittsburgh and Philadelphia airports. The airline's third hub is located in= =20 Charlotte, N.C. But the deal came with strings attached: If the airline=20 ultimately shuts down its Pittsburgh hub, as it has threatened to do as=20 part of its companywide restructuring plan, it will not receive any of the= =20 aid for Philadelphia facilities. "We are going to act as a team," Rendell=20 said. "If US Airways does not continue to hub at both airports,=20 Philadelphia and Pittsburgh, then none of these benefits will be available= =20 to US Air." Moreover, Rendell said, the investments at both airports will=20 help all air carriers, not just US Airways exclusively. But he said the=20 state is willing to sweeten the deal with more money "if there's more=20 significant commitment by US Air." Specifically, Rendell said, at least $10 million could be added to the plan= =20 if US Airways keeps its mainline personnel training center in Pittsburgh,=20 which Rep. Mike Doyle, D-Pa., emphasized as vital to providing good-paying= =20 jobs in the area. Negotiations begin Thursday and will be wrapped up by=20 July 18. Pittsburgh is the Arlington, Va.-based airline's costliest hub;=20 the average cost per passenger is $7 =97 more than double the $3 per=20 passenger cost at Charlotte. US Airways, the nation's sixth-largest=20 airline, was the first to file for bankruptcy in the wake of the travel=20 industry slump following the Sept. 11 terrorist attacks. An estimated=20 17,000 of US Airways' 32,000 employees work in Pennsylvania. The company=20 lost $2.1 billion in 2001 and has said it needs to cut costs by $1.6=20 billion to remain viable. "We're certainly apart on the dollar amount and=20 the form that we would be receiving assistance," Siegel said. "But when=20 someone puts a quarter-billion dollars on the table, and says, 'Look, we=20 want to work with you to find a solution,' you have to characterize that as= =20 very significant." The largest chunk of the money =97 $130.4 million =97 would come from the=20 Allegheny County Airport Authority, and would be paid with an increase in=20 fees and debt restructuring, said Allegheny County Executive Jim Roddey,=20 who attended the meeting. Beaver and Washington counties would kick in a=20 combined $22.5 million, with the city of Philadelphia adding another $57.5= =20 million. The state has pledged at least $23.5 million, and lawmakers are=20 promising to secure $30 million from the federal government. Specter, who=20 said he "wore out the telephone lines" since the terror attacks to help US= =20 Airways keep its head above the water, predicted the airline would maintain= =20 a "viable Pittsburgh operation" and described himself as "optimistic" after= =20 the meeting in his Washington office. Other lawmakers also said they were=20 happy with Siegel's initial response to the offer, which was made after=20 more than two months of tense rhetoric from both sides. "I'm pleased he's making the effort, basically, not to blow Pittsburgh=20 off," said Rep. Melissa Hart, R-Pa., whose district includes many airport=20 employees. *************************************************** 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/ Mas Site: www.tntisland.com/tntrecords/mas2003/ Site of the Week: http://www.carib-link.net/naparima/naps.html TnT Webdirectory: http://search.co.tt *********************************************************