PIT sues


Feb 12, 2003
Dont they realize Bankruptcy laws let US Airways do this? More waste of your tax dollars!

US Airways faces $1.5B claim in Pa.

Pennsylvania''s Allegheny County Airport Authority has filed a damages claim against US Airways Group Inc. over the carrier''s rejection of its lease at Pittsburgh International Airport.

The $1.5 billion claim covers potential damages resulting from the Arlington, Va.-based airline''s withdrawal from its contracts, including the debt incurred in building the terminal complex and related facilities US Airways and other airlines agreed to pay over the term of the operating agreement.

Montgomery''s Retirement Systems of Alabama has majority control of US Airways'' board. RSA''s CEO, David Bronner, is the airline''s new chairman, having been elected to the post earlier this month.

Airport Authority spokeswoman JoAnn Jenny says the claim includes compensation for the contracts US Airways has said it will reject, debt payments owed and damages.

US Airways told Allegheny County officials last month it had rejected its current lease at Pittsburgh International as part of its Chapter 11 bankruptcy restructuring and would seek to negotiate a new lease to reduce its operating costs. US Airways operates major hubs in Charlotte, N.C., Philadelphia and Pittsburgh.

The airline''s president and CEO, David Siegel, has set a Jan. 4 deadline for reaching a new agreement in Pittsburgh. The company would continue to pay its current rates until then, but it would reject the lease on Jan. 5 if a new agreement is not reached.

The airline also is seeking financial assistance from the state and the city of Philadelphia for improvements at Pittsburgh International and Philadelphia International airports.

US Airways filed its lease rejection shortly before midnight the day before it emerged from Chapter 11 protection. It did so after telling Allegheny authorities throughout the restructuring that it intended to honor its agreements in Pittsburgh, local officials say.

The authority contends US Airways agreed when it signed the operating agreement to pay its proportional share of expenses at the airport.

US Airways accounts for nearly 90 percent of the airport''s traffic and more than 80 percent of its bond debt. The Pittsburgh facility carries $673 million in bond debt.
Another nail in PIT''s coffin. Have fun connecting through ATL on Air Tran, or Midway on WN or ATA ''burghers. You now have a giant albatross around your neck with a really nice airport that will see all those US Airways nonstops replaced with 25 WN flights to MDW, BWI, and BNA, about a dozen on FL, and 5 or 6 on TZ. Oh yeah, the bondholders still want their money. Still think a LCC is going to hub a low O&D city with high costs.

I am personally looking up about this. Now I can get more nonstops out West from CLT.
This is just my opinion and I have no proof of course, but I believe the decision has already been made to eliminate PIT as a mainline hub, and another large reduction down to 240 or less is coming for the fleet. The variable is whether PIT becomes a SJ mini-hub, or reverts to ghost-town status.

But except for a handful of flights (PHL, CLT, DCA), the mainline is gone, IMO.
Pacemaker, I believe you are right. About the only thing that is really keeping the PIT hub alive right now is the unavailable status of St. Louis for a hub role. If AA decides to vacate Lambert...US Airways will finally have a hub west of the Mississippi - well just barely west. Just think, you won''t have to fly back east to fly west from most cities anymore - if that were to happen.
On 4/26/2003 11:45:23 AM dfw79 wrote:

Eh...shut the hub down and see how well they like it then. :)

Yeah, shut it down. That will show them. They should be happy they don''t have some low ser vice airline like Southwest flying in there.
Article: The authority contends US Airways agreed when it signed the operating agreement to pay its proportional share of expenses at the airport.

Folks on this board don't remember that much of the debt that Allegheny airport is straddled with was created mostly and mainly by USAirways way back in early 90s. They insisted and demanded even way back then that Allegheny County build a NEW airport NOT refurbish the old one. In exchange U demanded majority of the gates for an infusion of $500 Million to help with the cost of building this airport. They had also threatened to leave back then if this wasn't accomplished. Don't forget U was the #1 employer of Pittsburgh and over 11,000 jobs in the region. The county did what any county would do and comply. NOW THIS NEW MANGEMENT WANTS TO PLAY HARD BALL WITH THE COUNTY AND EXTORT ANOTHER $155 million to fund their new business plan ON TOP OF CONCESSIONS TO BE GIVEN FOR THE DEBT RELIEF AND GATES. They also have the B--ls to ask for $255 Million for their renovations for U for PHL.

We still have 9,000 jobs in PIT, and those jobs are in jeopardy if U leaves. That's alot of pressure for a County. If all business negotiations in this country operated the same as U mangement, we would be a nation of liars, theives, extortionists, and black mailers preying on the hard working taxpayers of this country. Thank god that many corporations don't dishonor "good faith" agreements, and run in to BK to screw anyone who did business with that company in good faith.
Keep in mind, that this mangement got all of PA on board to help them receive the ATSB loan and lobby to keep U in business. They also told allegheny County officials that they would NOT terminate the leases...again lies.

SO, I SAY AS A RESIDENT OF ALLEGHENY COUNTY AND AS A TAX PAYER OF ALLEGHENY COUNTY, AND AS AN EMPLOYEE OF U.... If U doesn't negotiate in "good faith", THEN THE LAW SUIT STANDS!!!!! And if I were the governor, I would sue for MUCH more damages than that
for straddling the residents of Allegheny County with USAirways debts AND WALKING AWAY FROM THEIR PROMISE BACK IN 1992 as well as a few months ago.

I guess some on these board would think that the community should just "suck it up" and be silent just like the employees of U.... well not this resident or this employee.
On 4/26/2003 1:48:14 PM dfw79 wrote:

if that were to happen.


You''re right - IF they want to run a real airline and are not merely singularly focused on gutting labor and creating the largest SJ airline in the industry.
Yeah, yeah Pitbull,on and on...lawsuit, resident...whatever...the gig is up in PIT. At best PIT will be US Airway''s Cinci. At worst, a ghost town. Regardless, your power days in Pit are numbered. Have fun commuting to PHL. Besides, you DID say you would be willing to relocate if hired. Rememer all the promises AMR made in BNA, and RDU? Soon PIT will join the list. You may think U owes PIT something, but they don''t. It''s a company trying to survive. Your fight for the ''burgh is admirable but very tired.
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Pacemaker how do you suppose the company will break all the unions on the property contracts by going below the 279 which is gauranted in every single labor contract.

Scope and Job Security.
The Scope and Job Security provision in the 2002 Restructuring Agreement is eliminated and replaced as follows:
• The Company will maintain a minimum fleet size of 279 Total Mainline* Aircraft (inclusive of maintenance and spares), subject to a force majeure clause that includes acts of terrorism.
*Mainline excludes MDA RJ aircraft

You are right. Don't know where you have been these past few months on these boards, but these boards are a manifestation of the effects and trauma this new mangement at U has had on the employees. Very difficult to "rise above" when the saga continues and continues with the atocities imposed on the "rank and file" employees. Doesn't matter that we emerged from BK and the company has been saved, and the ATSB loan is approved, and the United Code share is doing G-r-e-a-t, and that fuel is droping, bookings are up, and thank god the war is over, so quickly...doesn't matter. This mangement continues to take and take from their employees and now the communities and DEMAND more and more, and claim that the company just isn't quite where they want it to be BECAUSE THEY ARE NOT FINISHED IF EVER WITH THEIR EXTORTION SCHEMES AND TRYING TO BEAT EVERY SINGLE AIRLINE IN HAVING THE LOWEST COSTS IN ALL LAND. And expecting labor to perform #1 as stated in Siegel's hotline message to the employees.... And then, they have the audicity to denounce those who say ... "why are you doing this to us, and could you have some common decency AND PAY ATTENTION TO YOUR EMPLOYEES WHO STILL SUFFER!!!! "

Ok...I'm, ok now.
This is just my opinion and I have no proof of course, but I believe the decision has already been made to eliminate PIT as a mainline hub, and another large reduction down to 240 or less is coming for the fleet. The variable is whether PIT becomes a SJ mini-hub, or reverts to ghost-town status.

Amazing, simply amazing how people dream up this crap. Ask ALPA how they stand on this issue, if they will put up with it after being raped of their pension promises, the loss of too many jobs to count, promises not to go under a 279 fleet, on and on. The SAME with all other unions on the property with what they gave up. If the crap talked about on these boards came true, an AA situation and worst would occur, especially with the heavy weight politicians involved. Ask Dave himself when he makes another round of D&B shows in the coming weeks and listen to his response, while hundreds listen in witness and weigh his every word about their future. Reading these boards makes one realize how affected and dramatized U employees really are, especially with all the irrational remarks made with people agreeing no matter how ludicrous they are! Call this the comedy central U station board.

I agree with you. The die on PIT was cast some time ago. It''s unfortunate to think that such a lovely airport will be the RJ/SRJ/CRJ capital of the world. It''s a shame they couldn''t make it work.

This lawsuit will be most interesting. I wonder what will be turned up and let out into the press. There could be some renewed backlash at old news, like the $35 million paid out to Wolf, Gangwal and Nagin. Oh yeah, it was in their contracts and US Airways does honor its contracts, don''t they?

I should think Corporate might want to tread carefully just now.

Dea AKA Dead Equine Abuser