Things that make you go hmmm

[lgwcalling]

Once again, Southwest Airlines demonstrates their superior business acumen. If only US Airways had half the financial, partnering & communication skills that Southwest has. In a few years, Southwest has become the second largest carrier @ Pittsburgh International Airport. My guess is that they will be the number one carrier @ Pittsburgh International Airport in a few more years.



From the Pittsburgh Post Gazette, 2/08/08


Pittsburgh International Airport cuts fees to airlines
By Mark Belko, Pittsburgh Post-Gazette

Less than two months after boosting fees to airlines operating out of Pittsburgh International Airport, the Allegheny County Airport Authority is lowering them.

The authority announced this morning that it will cut rates to the airlines by anywhere from 11 percent to 48 percent after realizing $11 million in savings by refinancing $10 million in airport debt and $1 million in lower insurance costs.

With the savings, landing fees will drop from $3.18 per 1,000 pounds to $2.49, or 21 percent. That is still about 10 cents higher than it was at the end of 2007. Terminal fees will go from $129.17 a square foot to $110.01, a savings of 15 percent, but still about $15 higher than at the start of the year.

The biggest reduction will be in the ramp fee, which will drop 48 percent from $378.92 a linear foot to $197.47 a linear foot. That makes the rate about $33 lower than it was even before the fee increases kicked in at the start of the year.

"The measures demonstrate the airport authority's strong interest in keeping Pittsburgh International Airport competitive and marketable for the airlines," board chairman Glenn Mahone said in a statement.

The reductions come after Southwest Airlines, the airport's second largest carrier, raised concerns about the fee increases last fall and after a flap over the use of a $19.9 million payment from state gambling funds originally earmarked for airport debt reduction to help plug a deficit in the 2007 county budget. Allegheny County Chief Executive Dan Onorato took the money as partial reimbursement for $42.5 million contributed by the county toward construction of the airport terminal, which opened in 1992.


--------------------------------------------------------------------------------
More details in tomorrow's Pittsburgh Post-Gazette.

 

[Black Magic]

Makes you wonder why US didn't have the smarts to talk to the Pittsburg county authority and ask for a reduction of airport fees?

 

[BoeingBoy]

If you recall, PIT said that fees would go down during 2008 when they announced the increase last year. The prior increase was based on a "worst case" look at revenues/expenses for 2008.

Also note that the biggest drop - ramp space fees - affects airlines like WN less than US because WN uses it's gates so efficiently (up to 10 flights/day from each gate instead of 5-6) which means less ramp space to pay for at any given number of daily flights. So US will benefit a lot more (in dollar terms) from these reductions than WN.

Jim

 

[Pacemaker]

USAir was screaming to the County about the astronomical cost of doing business in PIT since the Wolf days. In fact he's the one to first write the handwriting on the wall; eliminating the hub has been in the game plan since the late 90's.

 

[Elevation]

That is still about 10 cents higher than it was at the end of 2007. Terminal fees will go from $129.17 a square foot to $110.01, a savings of 15 percent, but still about $15 higher than at the start of the year./quote]

I'm not sure what your getting at, the fees have still increased. They put out memo saying they are increasing fees then they reduce fees off of the recently increased fees and you're trumpeting this why?

 

[Dog Wonder]

If you recall, PIT said that fees would go down during 2008 when they announced the increase last year. The prior increase was based on a "worst case" look at revenues/expenses for 2008.

Also note that the biggest drop - ramp space fees - affects airlines like WN less than US because WN uses it's gates so efficiently (up to 10 flights/day from each gate instead of 5-6) which means less ramp space to pay for at any given number of daily flights. So US will benefit a lot more (in dollar terms) from these reductions than WN.

Jim

The new PIT is 5-6 flights a shift out of most gates.

Unfortunately, they are smaller planes than Southwest flies in most cases.

 

[jcw]

I think we all keep forgetting that when US pulled down all that capacity you really have not see a huge ramp up in flying from anyone including SW. I think we are forget the whole picture.

 

[ClueByFour]

USAir was screaming to the County about the astronomical cost of doing business in PIT since the Wolf days. In fact he's the one to first write the handwriting on the wall; eliminating the hub has been in the game plan since the late 90's.

Quite certain that's why wolfe brought LGW and CDG to PIT (and had to fight like hell for LGW).

In RE: US screaming--the cost at PIT is what it is because that's the terminal that USair wanted.

 

[Pacemaker]

Quite certain that's why wolfe brought LGW and CDG to PIT (and had to fight like hell for LGW).

In RE: US screaming--the cost at PIT is what it is because that's the terminal that USair wanted.

It's the terminal Colodny wanted. Wolf came onboard and realized the traffic & money was in PHL and the emphasis needed to be there. PIT was too close to PHL, had very poor O & D, and was an expensive place to do business - yes in part because of the new terminal - and the hub became expendable.

 

[Be Careful What You Wish For.]

It's not the same US Air.

It's not the "home town airline" any more.

The jobs have gone to WN (if at all).

The O&D is not there as described in enumerable examples.

PIT is not as important as it once was.

PHL does hold more importance.

Low fares have arrived in PIT, have they not (not to mention free transportation to work)?

People should hope that SWA doesn't "hiccup" too much more.