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SAYS IT HERE FOLKS....WHO'S NEXT?
Posted: Tuesday, April 9, 2013 2:45 am
Local officials want details of US Air merger By Kristen Doerschner [email protected] Timesonline.com | 0 comments
MOON TWP. -- Two local Congressional leaders are asking US Airways officials to provide details about how they plan to repay taxpayer subsidies for their operations at the Pittsburgh International Airport and a Moon Township facility in the event of a merger with American Airlines.
U.S. Reps. Tim Murphy, R-18, Upper St. Clair Township, and Mike Doyle, D-14, Forest Hills, sent a letter to US Airways Chairman and Chief Executive Officer W. Douglas Parker voicing their concerns about potential job loss and a negative economic impact should a merger of the two airlines be approved.
In a filing with the Securities and Exchange Commission, US Airways said it is likely that a flight-operations center, currently based in Moon Township that employees 700 workers, would move to Dallas.
The center was largely constructed in 2008 with taxpayer money, including $17 million in low-interest loans. The airline signed a 20-year lease with Allegheny County along with two 10-year options. Now, the intention to move the facility to Texas “leads us to believe US Airways was not acting in good faith when local taxpayers made this investment,” the letter said.
US Airways has also announced they may close a maintenance facility at the airport as early as 2014, despite the airline having signed a lease through December 2015, the letter said.
The letter also cites the airline’s $1.4 billion in canceled leases with the airport authority and the airline’s reduction in debt service payments from $50 million a year to $10 million a year.
“We request that you provide details of US Airways’ plan to pay back the millions in taxpayer subsidies used by US Airways to keep the airline competitive -- from construction of the midfield terminal, leasing agreements, low-interest loans, grants, etc. -- should the US Airways-American merger receive regulatory approval,” the letter said.
Posted: Tuesday, April 9, 2013 2:45 am
Local officials want details of US Air merger By Kristen Doerschner [email protected] Timesonline.com | 0 comments
MOON TWP. -- Two local Congressional leaders are asking US Airways officials to provide details about how they plan to repay taxpayer subsidies for their operations at the Pittsburgh International Airport and a Moon Township facility in the event of a merger with American Airlines.
U.S. Reps. Tim Murphy, R-18, Upper St. Clair Township, and Mike Doyle, D-14, Forest Hills, sent a letter to US Airways Chairman and Chief Executive Officer W. Douglas Parker voicing their concerns about potential job loss and a negative economic impact should a merger of the two airlines be approved.
In a filing with the Securities and Exchange Commission, US Airways said it is likely that a flight-operations center, currently based in Moon Township that employees 700 workers, would move to Dallas.
The center was largely constructed in 2008 with taxpayer money, including $17 million in low-interest loans. The airline signed a 20-year lease with Allegheny County along with two 10-year options. Now, the intention to move the facility to Texas “leads us to believe US Airways was not acting in good faith when local taxpayers made this investment,” the letter said.
US Airways has also announced they may close a maintenance facility at the airport as early as 2014, despite the airline having signed a lease through December 2015, the letter said.
The letter also cites the airline’s $1.4 billion in canceled leases with the airport authority and the airline’s reduction in debt service payments from $50 million a year to $10 million a year.
“We request that you provide details of US Airways’ plan to pay back the millions in taxpayer subsidies used by US Airways to keep the airline competitive -- from construction of the midfield terminal, leasing agreements, low-interest loans, grants, etc. -- should the US Airways-American merger receive regulatory approval,” the letter said.
