Pittsburgh struggles to slash costs, keep US Air

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Pittsburgh struggles to slash costs, keep US Air

With airline traffic dropping, the Allegheny County Airport Authority
increased landing fees and terminal rents at Pittsburgh International
Airport. The new fees mean airlines' per-passenger costs at the airport
will rise to $9.07, up from $7.59, on July 1. The authority uses most of
that money to pay off $600 million in debt still owed on the airport, which
opened an award-winning new terminal in 1992. Those costs have been a
sticking point between the airport and US Airways, which says it will drop
Pittsburgh as a hub if costs aren't cut at least in half. The airport
expects to have 13% less traffic than initially projected for 2003. US
Airways also wants $864 million in rent concessions and improvements at
airports in Pittsburgh and Philadelphia. Pennsylvania has offered $263.9
million in aid, but only if the airline commits to certain numbers of
flights and employees in Pittsburgh.

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