Allegheny County, US Airways discussing extension of airport lease
Wednesday, December 17, 2003
By Mark Belko, Post-Gazette Staff Writer
The Allegheny County Airport Authority and US Airways have resumed talks -- not about long-term debt relief at Pittsburgh International Airport but about what to do on Jan. 5 when the airline no longer is bound by its airport leases.
With US Airways committed, at least verbally, to maintaining current service until Labor Day, it must decide whether to sign, in some form, the existing airport lease -- the one it canceled shortly before emerging from bankruptcy in March -- or see its rates increase 20 percent.
"There's a lot of discussion going on," Allegheny County Executive-elect Dan Onorato said yesterday. He added he hopes to resolve that matter before moving on to the larger issue of airport debt relief. US Airways wants the authority and local and state politicians to cut the airport's $673 million in debt by $500 million.
Airport Authority Executive Director Kent George said discussions have involved operational and administrative issues relating to the lease cancellation and its impact on US Airways. "We have to figure out what we're going to charge, how it's going to be collected," he said. "These are perfunctory operational and administrative matters."
They likely involve issues such as the number of gates and facilities US Airways will use. The 20 percent premium US Airways would pay if not covered by the lease would cost the airline another $10 million to $12 million a year on top of the $62 million it now pays to the airport.
US Airways had asked the airport authority to extend its existing lease into October in exchange for maintaining current service and employment levels, plus or minus 12.5 percent. But the authority rejected that request.
Separately, the airline has verbally committed to U.S. Sen. Rick Santorum, R-Pa., that it would maintain current service levels through Labor Day as negotiations continued to reduce debt costs. That commitment appears to be solid with the US Airways announcement last week that it would be resuming daily non-stop service from Pittsburgh to London on May 1, continuing through Oct. 29
Usairways has had a year to discuss long term debt relief with Allegheny County,
Instead they chose to lob threats of destruction at western PA. at a cost of $10 to $12 million a year on top of the $62 million it already pays.
Now on Dec 17 they want to discuss what to do on Jan 05, 2004 when they no longer have a long term lease.
I guess Dave figures "you have to spend money to make money", I just wish he would stop spending mine! :down:
Wednesday, December 17, 2003
By Mark Belko, Post-Gazette Staff Writer
The Allegheny County Airport Authority and US Airways have resumed talks -- not about long-term debt relief at Pittsburgh International Airport but about what to do on Jan. 5 when the airline no longer is bound by its airport leases.
With US Airways committed, at least verbally, to maintaining current service until Labor Day, it must decide whether to sign, in some form, the existing airport lease -- the one it canceled shortly before emerging from bankruptcy in March -- or see its rates increase 20 percent.
"There's a lot of discussion going on," Allegheny County Executive-elect Dan Onorato said yesterday. He added he hopes to resolve that matter before moving on to the larger issue of airport debt relief. US Airways wants the authority and local and state politicians to cut the airport's $673 million in debt by $500 million.
Airport Authority Executive Director Kent George said discussions have involved operational and administrative issues relating to the lease cancellation and its impact on US Airways. "We have to figure out what we're going to charge, how it's going to be collected," he said. "These are perfunctory operational and administrative matters."
They likely involve issues such as the number of gates and facilities US Airways will use. The 20 percent premium US Airways would pay if not covered by the lease would cost the airline another $10 million to $12 million a year on top of the $62 million it now pays to the airport.
US Airways had asked the airport authority to extend its existing lease into October in exchange for maintaining current service and employment levels, plus or minus 12.5 percent. But the authority rejected that request.
Separately, the airline has verbally committed to U.S. Sen. Rick Santorum, R-Pa., that it would maintain current service levels through Labor Day as negotiations continued to reduce debt costs. That commitment appears to be solid with the US Airways announcement last week that it would be resuming daily non-stop service from Pittsburgh to London on May 1, continuing through Oct. 29
Usairways has had a year to discuss long term debt relief with Allegheny County,
Instead they chose to lob threats of destruction at western PA. at a cost of $10 to $12 million a year on top of the $62 million it already pays.
Now on Dec 17 they want to discuss what to do on Jan 05, 2004 when they no longer have a long term lease.
I guess Dave figures "you have to spend money to make money", I just wish he would stop spending mine! :down:
