Airport Authority Confident Of Maintaining Hub

[USA320Pilot]

Airport Authority confident of maintaining hub status

Director says airline's options are limited

PITTSBURGH (Business Times) - Allegheny County Airport Authority executive director Kent George this week downplayed speculation that US Airways might consider shifting Pittsburgh flights and jobs to its Charlotte hub, if negotiations regarding the airline's hub here reach an impasse.

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Chip comments: "The article above illustrates the ACAA is truly clueless to what is going on in US Airways' executive suite regarding Pittsburgh negotiations. The only reason Dave Siegel offered to extend the current Pittsburgh leases until October is that he is not ready to act upon United's assets because of continued uncertainty regarding the Chicago-based carriers Plan of Reorganization. If the ACAA plays around I believe they will see their smiles turn into a...

of negativity for Western Pennsylvania."

Regards,

Chip

 

[ITRADE]

Jesus Chip....Another .sig image....

 

[RowUnderDCA]

Don't you think that ALL of the other carriers at PIT would object to U getting this 'extension?' On what basis does ACAA offer this extra special flexibility to U and deny it to all the other carriers? All other carriers at PIT have to agree to a long-term commitment to PIT in exchange for lower rates, I assume. How does ACAA justify treating U differently? ACAA may have told U 'hell no' but it might be more accurate for them to have said, 'hell no and besides, we can't.'

 

[ITRADE]

Don't you think that ALL of the other carriers at PIT would object to U getting this 'extension?' On what basis does ACAA offer this extra special flexibility to U and deny it to all the other carriers? All other carriers at PIT have to agree to a long-term commitment to PIT in exchange for lower rates, I assume. How does ACAA justify treating U differently? ACAA may have told U 'hell no' but it might be more accurate for them to have said, 'hell no and besides, we can't.'

The same way that most airports treat their "hub" carrier tenants.

All the tenants at MIA got to shuck out big extra $$$ when AA got a new terminal.

 

[novaqt]

Chip:

What United assets would you be referring to? And what would you be purchasing them with?

 

[burghlaw1]

If what you say is true, Chip, then what is the incentive for ACAA negotiating with U at all? If U is waiting for United assets to become available, then the airline has no intention of committing to PIT until the airline knows what's happening with those other assets. And if U gets no assets from United, and decides to stay at PIT, then ACAA is better off waiting until then for greater leverage. U can keep its PIT hub without doing anything after January 5, 2004. U will merely have to pay more for it.
:blink:

 

[RowUnderDCA]

The same way that most airports treat their "hub" carrier tenants.

All the tenants at MIA got to shuck out big extra $$$ when AA got a new terminal.

Itrade-

But didn't that go before a judge and didn't the judge change the cost allocation that Dade County originally proposed? Maybe Ive got that wrong. But this isn't exactly the same thing. Airports make improvements to their facilities. If Dade County retained the right to assign any carrier to facilities that they helped improve, that might be an acceptable cost allocation.

An extension at PIT would be just a blatent freebie.

 

[cavalier]

The local government has been working with this airline for years and all they get in returned is threats and lies. I would think they are acting according to how they have been treated. Chip: Once again, why don't you reveal your ABSOLUTELY solid facts to the people that make it happen rather than gloating about your contacts?

 

[767jetz]

Chip comments: "The article above illustrates the ACAA is truly clueless to what is going on in US Airways' executive suite regarding Pittsburgh negotiations.

Yeah, yeah... We know... Another group of mis-informed people who just don't know or understand what the "All Knowing" Chip knows.

Give me a break! There must be a lot of stupid people in this world, since only the ones who agree with Chip's speculations are conisdered well informed. Everyone else is just plain wrong. <_<

You really crack me up dude! I'm starting to feel sorry for you.

 

[ClueByFour]

From the article:

However, he pointed to several industry dynamics, including Southwest Airlines' recent entry into US Airways' territory in Philadelphia, US Airways' continuing struggle with industry-high per seat mile costs and the difficulty and expense of shifting operations to another hub, that could handcuff the airline and make Pittsburgh a more desirable hub to hold onto.

"The chances of US Airways leaving Pittsburgh at this time are very, very slim," Mr. George said. "We don't believe US Airways has a lot of options to go to another location."

Who was first on these boards to consistantly point these points out?

Further, from the article (quoting Mike Boyd):

"US Airways isn't going to walk out tomorrow. They don't have a lot of alternative options, but that doesn't change the fact that they could walk out. It's an economic equation."

He said the airline could still look to cities such as Indianapolis; St. Louis; Columbus, Ohio; or Kansas City to replace the Midwest connection that Pittsburgh now provides. However, he said it would be difficult to uproot its local operations.

"There are some potentials there (for relocation)," Mr. Boyd said. "But clearly, there's a lot less brain damage staying in Pittsburgh than going somewhere else."

As I have said all along, US has neither the cash nor a city to run to that has PIT's revenue and operational advantages. IND, STL, CMH, and MCI all have LCCs that keep revenue premiums to a minimum. CLT does not allow for realistic northeast connections. PHL does not allow for anything even approaching a connecting hub, and the yields are going to take it in the shorts in just a few short months.

I guess the question is who you find more credible: the ACAA director and a respected airline analyst, or the alternative viewpoint.

The only UCT involving/impacting PIT will be the Mikey D's in the core swapping space with the new suitor, Krispy Kreme.

 

[repeet]

Well here it is less than thirty days from a major cost increase to continue operations in PIT, and the company still thinks ACAA will blink and give in.

Does the Company have a plan "B" if they don't?

Does the Company think that they will always get their way?

Does our Company even THINK?

I'll say one thing, this Company is predictable.
Do nothing until the employees have to bail you out.

NOT THIS TIME ! ! !

 

[delldude]

chip:how can you be sure your 'trusted source' isn't feeding you company manna??
i'm sure he's aware you post...i mean if he isn't , our dear freinds hawk-flyonthewall and comapny sure know who you are.
remember the words of fox mulder:trust no one

 

[burghlaw1]

The only UCT involving/impacting PIT will be the Mikey D's in the core swapping space with the new suitor, Krispy Kreme.

Is this true?

Not to change the subject; but I have a real weakness for donuts.

 

[usfliboi]

i really want to see the reaction of you chip bashers when this comes to past. I assure you Chip isnt blowing smoke ! Best way to tell is to wait asnd see and i grant you this ! There will be plenty to talk about in the next 90 days !

 

[cavalier]

i really want to see the reaction of you chip bashers when this comes to past. I assure you Chip isnt blowing smoke ! Best way to tell is to wait asnd see and i grant you this ! There will be plenty to talk about in the next 90 days !

I personally am not bashing Chip. I am simply asking him to explain to the powers that be what he knows and why it's in their best interest to listen to him. If what Chip says is true and he knows the sky is falling then it's only right he warn his brethren to these facts before we see ghost facilities. Coming only on these baords spreading his endlesss resources of everything related to airline issues is like preaching to the choir.