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May 29, 2003
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Subject: Single Operations Center Selection Process


We realize that the single Operations Center decision process and the
ultimate decision of where the single Operations Center will be located
are
extremely important to you. We have now finalized the process and
timeline
that we will use for the selection. So, attached you will find three
documents that discuss the decision process and timeline for selecting
a
single OCC/SOC facility. The three documents are:



1) A letter from Al Crellin to the employee in both facilities
(PIT
and PHX) that outlines the decision process and timeline.

2) A question and answer document regarding the process.

3) The body of the letter that CA Howlett, Senior VP ? Government
Affairs, has sent to the Governors of AZ, NC, and PA; the Mayors of
PHX,
CLT, and PIT; the Director of the Airport Authorities in the three
cities;
the Economic Development Directors for the three cities.
 
Subject: Single Operations Center Selection Process
We realize that the single Operations Center decision process and the
ultimate decision of where the single Operations Center will be located
are
extremely important to you. We have now finalized the process and
timeline
that we will use for the selection. So, attached you will find three
documents that discuss the decision process and timeline for selecting
a
single OCC/SOC facility. The three documents are:
1) A letter from Al Crellin to the employee in both facilities
(PIT
and PHX) that outlines the decision process and timeline.

2) A question and answer document regarding the process.

3) The body of the letter that CA Howlett, Senior VP ? Government
Affairs, has sent to the Governors of AZ, NC, and PA; the Mayors of
PHX,
CLT, and PIT; the Director of the Airport Authorities in the three
cities;
the Economic Development Directors for the three cities.
Your post appears to be a memo. Who/ What was the source of this document and where did you obtain it? Do you have access to the above mentioned documents themselves?
 
Let me outline it for you:

Threaten PA, NC, and AZ with job losses. See who gives the most taxpayer money/credit to LCC. Whoever gives the most wins the jobs.

It's very simple.
 
If you are correct about that I'm sure the government folks in the PIT area will be thrilled to be asked for more concessions to the same airline that discharged most of it's obligations to the PIT governments and people.
 
My CØst NUTral Magic 8 Ball says PHX.

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My "which municipality will bend over and take it the furthest" meter would usually be alarming on Jerry Orr and the gang at CLT.

In this case, however, I think CLT has one thing going against it--weather. I don't know if I'd want my OCC sitting where one of those hurry-caines might run over it.

With that said, PHX it is. I'm hoping that PIT tells them to go pound sand, or alternatively offers them the E concourse as the token gift.
 
Let me outline it for you:

Threaten PA, NC, and AZ with job losses. See who gives the most taxpayer money/credit to LCC. Whoever gives the most wins the jobs.

It's very simple.
Well, actually CLT has only to gain in this. PHX and PIT both would lose. NC probably would offer better incentives (corporate welfare) than either AZ or PA. CLT would more than likely do as it has in the past for US, use airport revenue bonds to pay for and build the facility and let US lease it for a rediculously low sum. The airline doesn't own either hangar, the brake shop, or the training center in CLT, thus, it pays no property taxes.

Of course, there's no reason it has to be at the airport. South Carolina could easily offer a basketfull of incentives and tax breaks that could take it to Lancaster or York counties (suburban CLT). In the past year, SC has "stolen" six high-profile operations and HQ's from Charlotte proper. Companies still get the benefit of being in Charlotte (the city's southern border is the NC/SC state line), while at the same time getting far more tax breaks than if they were in NC.

As a side note, When did weather become a point of contention as to where OCC is located?
 
Well, actually CLT has only to gain in this. PHX and PIT both would lose. NC probably would offer better incentives (corporate welfare) than either AZ or PA. CLT would more than likely do as it has in the past for US, use airport revenue bonds to pay for and build the facility and let US lease it for a rediculously low sum. The airline doesn't own either hangar, the brake shop, or the training center in CLT, thus, it pays no property taxes.

Of course, there's no reason it has to be at the airport. South Carolina could easily offer a basketfull of incentives and tax breaks that could take it to Lancaster or York counties (suburban CLT). In the past year, SC has "stolen" six high-profile operations and HQ's from Charlotte proper. Companies still get the benefit of being in Charlotte (the city's southern border is the NC/SC state line), while at the same time getting far more tax breaks than if they were in NC.

As a side note, When did weather become a point of contention as to where OCC is located?

I think that in order to use bonds, dont all the airlines serving CLT have to sign off to make sure the bonds are paid off? As for weather, with the exception of Hugo, I dont think hurricanes would even figure into the equation. But getting back to the financial end of it, Jerry has enough money to do what needs to be done, he stated during BK 2 that if US pulled the plug on CLT he could continue to keep his employees working for 4 years w/o layoffs, or if the FEDS pulled any financing for the 4th runway he could build it with airport money. So if having OCC is benificial to CLT or just a status thing to make CLT look good he will make sure it happens. I dont think he wants to lose, especially after FEDEX announced they were putting a large op in GSO and not CLT..
 
Pittsburgh (US Airways) was the survivng certificate. The certificate will be "housed" (so to speak) in PIT, so wouldn't the operation stay with the certificate?????
 
Pittsburgh (US Airways) was the survivng certificate. The certificate will be "housed" (so to speak) in PIT, so wouldn't the operation stay with the certificate?????
I don't think there's any need for that. When Spirit moved from DTW to FLL, the FAA certificate office stayed in DTW. There are several aspects to the operation around the country--training in both PHX & CLT, for example.

Besides--there's an advantage to having all those FAA people in a different city :D
 
Of course, there's no reason it has to be at the airport.
PHX SOC isn't on the airport. There's plenty of land at the Flight Center on which to build. Plus it's not the typical nicotine-stained hell-hole that characterizes many of the "legacy" facilities.
 
Pittsburgh (US Airways) was the survivng certificate. The certificate will be "housed" (so to speak) in PIT, so wouldn't the operation stay with the certificate?????
The US certificate is administered by the PIT FAA office. The HP cert is by the PHX FAA. The OCC/SOC does not have to stay with the certificate.

I believe all that is needed is a local mailing address for legal purposes.
 
PHX SOC isn't on the airport. There's plenty of land at the Flight Center on which to build. Plus it's not the typical nicotine-stained hell-hole that characterizes many of the "legacy" facilities.
Even if SOC stays in PHX, I think it will be in a new building. The current SOC is expandable, but the noise from the construction would be a distraction. I've also heard that the FC will be turned into a "mega-training" center ..moving customer service training there as well (isn't it currently done at that hell-hole on 52nd street?)

If SOC stays in PHX, the current facility could easily serve as the backup. The current backup is also on 52nd stret . .in a room with a bunch of servers ..small, cold, and noisy.

I'm hoping for somewhere in the east valley! :D
 
Imagine the possibilities if NO city is willing to put up all the things that the airline wants. :eek:
 
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