US Airways' airport plan coming 'soon'
Wednesday, August 20, 2003
By Mark Belko, Post-Gazette Staff Writer
Two months after receiving a $263.9 million proposal from state and local politicians aimed at preserving its Pittsburgh hub, US Airways finally may be ready to counter with its own plan.
A spokesman for Pennsylvania Gov. Ed Rendell said yesterday that the state was expecting to receive a proposal from the airline soon, based on discussions with US Airways officials.
But neither Rendell spokesman Tom Hickey nor US Airways spokesman David Castelveter would say exactly when the proposal would be delivered to Rendell, who is leading the negotiations on behalf of the state, and Pittsburgh and Philadelphia authorities.
"We've been working on a solution that we expect to present soon," Castelveter said. "We're not going to put a timeline on it."
Hickey said the governor expected the proposal within the next month -- and probably sooner -- but could not be more specific.
The comments came less than a week after Allegheny County Chief Executive Jim Roddey expressed frustration with how long it has taken US Airways to respond to the $263.9 million proposal delivered to the airline during a meeting in Washington on June 11.
The proposal calls for cost savings and capital improvements at Pittsburgh International Airport and Philadelphia International Airport, but it did little to address the major issue US Airways claimed was confronting the Pittsburgh airport -- $673 million in debt.
US Airways, Pittsburgh's dominant carrier, pays $54 million a year to pay off that debt, most of which was incurred in the construction of the midfield terminal, which the airline agreed to build.
It wants the airport to cut that debt by $500 million -- a figure Roddey and other local officials believe is unrealistic unless the airport defaults on bonds or stretches out the debt, incurring millions in additional interest costs.
In an interview last week, Chris Chiames, US Airways senior vice president of corporate affairs, said the airline was working with municipal finance experts to examine ways to reduce the debt.
Told yesterday that US Airways soon might be providing a response, Roddey replied simply, "I hope that's correct, and that we do get it soon." He declined further comment.
Before emerging from bankruptcy, US Airways canceled its leases at Pittsburgh International, effective Jan. 5, and is seeking to lower its costs through the negotiations. Without cost reductions, it may shut down or dramatically scale back its Pittsburgh hub.
Wednesday, August 20, 2003
By Mark Belko, Post-Gazette Staff Writer
Two months after receiving a $263.9 million proposal from state and local politicians aimed at preserving its Pittsburgh hub, US Airways finally may be ready to counter with its own plan.
A spokesman for Pennsylvania Gov. Ed Rendell said yesterday that the state was expecting to receive a proposal from the airline soon, based on discussions with US Airways officials.
But neither Rendell spokesman Tom Hickey nor US Airways spokesman David Castelveter would say exactly when the proposal would be delivered to Rendell, who is leading the negotiations on behalf of the state, and Pittsburgh and Philadelphia authorities.
"We've been working on a solution that we expect to present soon," Castelveter said. "We're not going to put a timeline on it."
Hickey said the governor expected the proposal within the next month -- and probably sooner -- but could not be more specific.
The comments came less than a week after Allegheny County Chief Executive Jim Roddey expressed frustration with how long it has taken US Airways to respond to the $263.9 million proposal delivered to the airline during a meeting in Washington on June 11.
The proposal calls for cost savings and capital improvements at Pittsburgh International Airport and Philadelphia International Airport, but it did little to address the major issue US Airways claimed was confronting the Pittsburgh airport -- $673 million in debt.
US Airways, Pittsburgh's dominant carrier, pays $54 million a year to pay off that debt, most of which was incurred in the construction of the midfield terminal, which the airline agreed to build.
It wants the airport to cut that debt by $500 million -- a figure Roddey and other local officials believe is unrealistic unless the airport defaults on bonds or stretches out the debt, incurring millions in additional interest costs.
In an interview last week, Chris Chiames, US Airways senior vice president of corporate affairs, said the airline was working with municipal finance experts to examine ways to reduce the debt.
Told yesterday that US Airways soon might be providing a response, Roddey replied simply, "I hope that's correct, and that we do get it soon." He declined further comment.
Before emerging from bankruptcy, US Airways canceled its leases at Pittsburgh International, effective Jan. 5, and is seeking to lower its costs through the negotiations. Without cost reductions, it may shut down or dramatically scale back its Pittsburgh hub.