Since we are talking about codesharing partners and UA's future, I had one more comment to make after reading an interesting article from the Pittsburgh Business Times.
I don't remember where I heard this, but someone recently suggested that UA might be selling assets to USAir. The assumption was that USAir's negotiation with Pittsburgh was being held up pending the outcome of UA's restructuring.
After reading this article, it sounds to me more like USAir simply cannot afford their leases and are trying to cut a better deal through 11th hour negotiations. They may infact end up paying a 20% premium due to this tactic. How might this affect the feed from our east coast regional partner to UA's worldwide route structure? Also notice the comments about USAir alienating it's employees. How would this affect a UA customers travel experience?
Here are some excerpts from the article:
Lack of lease could cost US Airways
County says 20 percent premium could be assessed after Jan. 4
Christopher Davis
FINDLAY TOWNSHIP -- If US Airways' last-minute decision to reject its leases at Pittsburgh International Airport is any indication, the airline could again wait until the 11th hour to make its next move in the ongoing negotiations regarding its future in Pittsburgh.
County Executive Jim Roddey has accused the Arlington, Va.-based airline of moving unnecessarily slow in responding to the $264 million financial incentive and improvement package offered in June by Gov. Ed Rendell and local officials.
Industry analysts said US Airways likely is simply taking its time to evaluate its post-Chapter 11 financial situation, as well as looking for ways to land a better deal at Pittsburgh International.
"There could be some gamesmanship," said Ray Neidl, a New York-based airline analyst with Blaylock & Partners LP. "These types of negotiations tend to go down to the wire. I think they're just trying to get a deal they can afford."
Mr. Roddey accused the airline of using delay tactics and questioned its commitment to Pennsylvania.
"I think David Siegel's perfecting his unique management style, which is we'll burn that bridge when we get to it," Mr. Roddey said. "He's alienated all of the unions and all of the employees, and, now he's trying to do that with everyone he's negotiating with."
In the meantime, he said the Airport Authority is actively recruiting new airlines, in the event that US Airways pulls out. He said he hopes to have news on that front within the next 60 days.
Mr. Neidl, the Blaylock analyst, said other airlines might be interested in adding flights at Pittsburgh International, but he said it's unlikely they would want to establish hub operations here.
He said MidAtlantic's future in Pittsburgh likely is "safe," but that it's also likely that US Airways would cut its mainline service in Pittsburgh by as much as two-thirds.
He said the state's current offer to US Airways is probably unacceptable to the airline (767jetz adds: this could be the real reason negotiations are at a standstill), and Mr. Rendell's calls for it to commit to continuing service across Pennsylvania at small airports in cities such as Latrobe and Williamsport as part of the agreement are unrealistic.
"The airline has to do what it has to do to say alive, and the hub in Pittsburgh is no longer a must have. It's a maybe have."
