rendell should turn usairways down

etops1

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Dec 6, 2003
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Rendell should turn USAirways down .


By Jack Markowitz
FOR THE TRIBUNE-REVIEW
Wednesday, November 8, 2006


The election is over. For a little while no politician has to pander. Gov. Ed Rendell should seize this opportunity.
He should declare that Pennsylvania will give no public subsidy to US Airways to build a flight operations control center here.

Then he should get on the phone to the governors of Arizona and North Carolina. And urge them, governor to governor, to take the same stand: that is, send US Airways away with a polite no. Because enough is enough. States have to quit bidding against each other for industry using taxpayers' money.

US Airways is a free enterprise. It should build and pay for its own flight operations center -- and would without politicians dangling "incentives." In this case no small change is involved: some $25 million. The US Airways design would put 400 to 600 people to work. So $25 million divvies up to $41,000 to $65,000 per job. Sounds nuts, doesn't it?





But let's be fair. And here's the cruel part. US Airways already employs 450 workers at an existing, apparently obsolete, control center near Pittsburgh International Airport. Plus 175 others at a similar location near Phoenix. One group will lose their livelihoods if the airline picks the other site; or both if it opts for a third, Charlotte, N.C. Hence the sleazy bidding war. Three states that ought to know better are ready to throw public money at an airline whose survival, after all, hinges on something else and wholly within its own control: getting the doggone airplanes and baggage where they're supposed to go on time.

There's a further bizarre detail. Phoenix claims that its $25.3 million in "incentives" include $16.2 million in so-called New Market Tax Credits. It seems there's a federal program to steer investment toward "underserved" communities. Phoenix, one of the country's fastest-growing sun spots, is underserved? Who'd have thought it?

No doubt it would take serious grit for Rendell to break the cycle in the increasingly absurd war between the states for "job creation." But the election's over. He can't run for governor again anyway. He can practice honest economics now.

And that would involve promoting true job creation. By working to cut the size and cost of the state Legislature and bureaucracy. By cutting taxes. And discouraging the militancy of organized labor (which is the real hole-card that Arizona and the Carolinas hold against Pennsylvania). And trying to keep the coming dominance of gambling interests in state politics from wreaking too much ruin on families, communities and competing business.

As to US Airways operations control center workers, if a taxpayer subsidy isn't forthcoming, their marching orders are clear: to be the best control center workers in the country. So US Airways would surely build here, or else the management knows not what it does.


Retired business editor Jack Markowitz writes Sundays and Wednesdays. E-mail him at [email protected].
 
As a life-long tax payer of Allegheny County, and a labor proponent, I'm all for job creation.

However, just as important is "honest economics" and dealing with corporate managements that have integrity when weighing in giving taxpayer incentives.
In the instance of USAirways, and their history in dealing with the airport, and in light of broken promises and contracts, furloughing well over 7,000 in Pittsburgh alone... well... good thing for U, I did not aspire to be elected governor of PA. B)
 
Unfortunately for Mr Parker, Mr Rendell has a very large card to play and that card is the "A" gates in PHL.

The articale IMO loses site of the bigger picture in that so called "Sun Belt" states have for years used incentives to bring "Rust Belt" jobs to their states.

This time it's different, PHL and by extension Rendell have something US needs (gates in A-West) and IMO PIT is the front runner.

Fast Eddie will make it happen. AZ politicians are clueless as to this mans skills.

Very true. Those A-West gates in PHL are prime international destination real estate.

And Rendell could just as easily give Southwest most of B and C concourse just because the might be willing to fill them with 737's.

It all depends on how he feels when he wakes up when Tempe comes looking for a handout.
 
NEVER and I mean NEVER underestimate the political and dealmaking skills of the moral pond scum known as Ed Rendell.

I dislike him immensely and I've made no bones about it, but you have to respect his deal making abilities none the less.



I hope he cleans Parker's clock. I feel the same way about "Boy Wonder" that you feel about Rendell.
 
I can hear the phone conversation now:
Douggie, Eddy here. If you don't put the OCC in Pittsburgh I'm not giving you those three A gates in Philly, Southwest will take 'em. Philly don't need no more international service, what they really need is more flights to Orlando! You can take the rest of those jobs from Pitt too! We don't want no crew base, maintenance base, or no hub- I'm holdin' the cards here! 'cause even though it's a dyin' rust hole, Southwest might eventually wanna add more flights there, remember Air Train? Take your high payin' jobs to Arizona or North Carolina- We ain't budgin'.

Do you really think so?
 
Unfortunately for Mr Parker, Mr Rendell has a very large card to play and that card is the "A" gates in PHL.

I just dont understand how state government can dictate how the city of PHL doles out gate usage....
 
I was a long-standing practice to rent or own as many gates a possible to keep the competition out. Southwest broke this mole they get by with less gate space per flight that any airline of there size
 
I wrote Jack a letter and told him that while I agreed with what he said about govt offering incentives, I questioned if he would feel as strongly had this been anyone but US Airways and if he feels the way he does about ALL industries. He responded professionally stating his position against ANY incentives. it was nice to have a professional respond with out the cry baby, defensive tactics of another Trib writer.

BTW, I agree with Jack.