Friday, April 02, 2004
By Dan Fitzpatrick, Pittsburgh Post-Gazette
Allegheny County Airport Authority director Kent George told local US Airways labor officials yesterday that Pittsburgh International Airport's debt should fall by $26 million annually by the end of this year, enough to drop per-passenger costs from $10 to as low as $7.50.
But a US Airways vice president, in town to meet with employees, cast doubt on whether that would be low enough to keep the airline's hub in Pittsburgh.
US Airways Vice President Doug McKeen said the airline was looking for a reduction below $7.50 per passenger, said Jim Drummond, a US Airways employee and Communications Workers of America official who was at the morning meeting with county officials and the afternoon meeting with McKeen. McKeen couldn't be reached.
How much lower was not clear yesterday. Per-passenger costs at the airport have risen nearly $3 in the past two years largely because of a sharp drop-off in flying by US Airways.
Because the debt costs have held relatively steady, the reduction in traffic has meant that the per-passenger share of those costs has risen for US Airways and all airlines.
The real issue for US Airways is $640 million in airport debt, which requires roughly $62 million a year in payments, the bulk of which are paid by US Airways.
US Airways has told Gov. Ed Rendell that it would like that debt to be reduced by as much as $47 million a year through additional revenues, possibly through the legalization of slot machines, or $32 million if a bond restructuring were used.
George said yesterday that the debt would be reduced through $11 million in operating cost reductions and $15 million from a $1.50 increase in a current $3 fee all passengers using the facility must pay. The federal government has yet to approve the higher passenger facility charge.
Allegheny County Chief Executive Dan Onorato, who also attended the morning meeting, said he was hoping to meet with Rendell on this topic next week and to approach US Airways with an official proposal soon.
By Dan Fitzpatrick, Pittsburgh Post-Gazette
Allegheny County Airport Authority director Kent George told local US Airways labor officials yesterday that Pittsburgh International Airport's debt should fall by $26 million annually by the end of this year, enough to drop per-passenger costs from $10 to as low as $7.50.
But a US Airways vice president, in town to meet with employees, cast doubt on whether that would be low enough to keep the airline's hub in Pittsburgh.
US Airways Vice President Doug McKeen said the airline was looking for a reduction below $7.50 per passenger, said Jim Drummond, a US Airways employee and Communications Workers of America official who was at the morning meeting with county officials and the afternoon meeting with McKeen. McKeen couldn't be reached.
How much lower was not clear yesterday. Per-passenger costs at the airport have risen nearly $3 in the past two years largely because of a sharp drop-off in flying by US Airways.
Because the debt costs have held relatively steady, the reduction in traffic has meant that the per-passenger share of those costs has risen for US Airways and all airlines.
The real issue for US Airways is $640 million in airport debt, which requires roughly $62 million a year in payments, the bulk of which are paid by US Airways.
US Airways has told Gov. Ed Rendell that it would like that debt to be reduced by as much as $47 million a year through additional revenues, possibly through the legalization of slot machines, or $32 million if a bond restructuring were used.
George said yesterday that the debt would be reduced through $11 million in operating cost reductions and $15 million from a $1.50 increase in a current $3 fee all passengers using the facility must pay. The federal government has yet to approve the higher passenger facility charge.
Allegheny County Chief Executive Dan Onorato, who also attended the morning meeting, said he was hoping to meet with Rendell on this topic next week and to approach US Airways with an official proposal soon.
