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> $2B jet deal to boost regional fleet
>
>
> US Airways is close to placing an order worth at least $2 billion for more than 100 regional
> jets made by Embraer of Brazil, as part of a multiyear fleet plan for the newly formed
> MidAtlantic Airways division based in Pittsburgh.
>
> The airline, which emerged from bankruptcy March 31, within weeks is expected to place a firm
> order for the small, cost-efficient jets from Embraer, said the Air Line Pilots Association.
> MidAtlantic is supposed to begin service by the end of 2003.
>
> Over the next several years, the Arlington, Va.-based carrier plans to order up to 365 more
> regional jets for MidAtlantic, and the three other express carriers US Airways owns. Those
> Embraer orders are expected to involve regional jets with between 44 and 50 seats, the union
> said.
>
> Building a sizable regional jet fleet has been a key piece in US Airways' recovery plan for
> nearly two years. Management floated plans to acquire hundreds of regional jets long before
> David Siegel arrived as CEO in early 2002 and months before the terrorist attacks of Sept. 11,
> 2001, sent passenger traffic into a long slump.
>
>
>
> Pittsburgh, and others cities, may be too expensive, US Airways says
>
>
> US Airways President and CEO David Siegel told investors on Thursday that Pittsburgh
> International Airport cannot compete in today's aviation market and that other cities could soon
> find their airports in similar situations.
>
> Speaking during a Morgan Stanley debt investors conference in New York, Siegel said US Airways'
> costs at Pittsburgh International are too high and explained why the airline decided to reject
> its Pittsburgh leases 21 minutes before successfully emerging from Chapter 11 bankruptcy
> protection.
>
>
>
> Luck o' the Irish
>
>
> US Airways will inaugurate service this Sunday between Philadelphia and Dublin and service
> between Philadelphia and Shannon on Monday. Seasonal daily service to both Ireland destinations
> will operate through the end of October, using Boeing 767 aircraft.
>
> Separately, US Airways begins operations today at Philadelphia International Terminal A-West.
> All US Airways flights to and from Europe and the Caribbean will operate from the new four-level
> terminal, which houses 13 gates, 56 immigration booths and 800,000 square feet of total space.
> US Airways has nine leased wide-body gates in the new facility, and has access to up to three
> additional gates.
>
> A new US Airways Club and Envoy Lounge together occupy space in the uppermost level of
> International Terminal A-West and encompass almost an acre of floor space.
>
> The combination Club and Lounge is the largest of the 24 Clubs in the US Airways network. US
> Airways Club members traveling internationally will enjoy the convenient facility location,
> which is within five to seven minutes of the international departure gates. Customers traveling
> in Envoy Class also will have access to a separate Envoy Lounge within the Club, which provides
> complimentary cocktails and hors d'oeuvres.
>
> "The addition of our ninth and tenth European destinations and the beginning of our operations
> out of this spectacular new terminal signal the bright future of US Airways' international
> gateway in Philadelphia," said Vice President of International Doug Leo.
>
>
> Bad Press?
>
> US Airways Friday, expressed its strong disappointment to the leadership of the Pittsburgh
> Post-Gazette for its unfortunate choice of words in a headline on a story about a speech that
> Dave Siegel made to a New York investment conference yesterday. The headline read, "Pittsburgh
> airport called a loser by US Airways CEO." In fact, Siegel never made such a characterization.
> In his keynote speech to the Morgan Stanley airline debt conference, Siegel used Pittsburgh as
> an example in his discussion of airport costs, which he said are part of the next wave of
> aviation industry restructuring.
>
> "Just as airlines expanded too much in the last decade, so too have airports. And the debt is
> coming home to roost," he said. Siegel pointed out that it costs US Airways nearly $9 per
> passenger to use the Pittsburgh hub, of which $8 goes directly to service the $675 million debt
> of the airport. "Now Pittsburgh is a great airport. But as impressive as it is, and as much as
> people like connecting there... not one passenger is willing to pay us extra for the privilege
> of connecting at our Pittsburgh hub." Siegel reiterated his desire to work with the leadership
> of the Pittsburgh community to find a solution. "Whether it be to maintain our hub at
> Pittsburgh, or to attract other airlines to serve or expand at the airport, making it a
> cost-competitive place to do business is going to be critical for the future of Pittsburgh," he
> said.


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