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.
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.