Pit Airport Looks Beyond Us Airways For A Lift

[Light Years]

Excellent facility and geographic location or not, PIT is the loser hub in terms of O&D. Its also right beside, in fact in the same state as our only hub that has enough traffic to support one. The current US Airways route structure has never made sense and never will.

That said, there is no place for a US with only PHL and CLT (and the three focus cities) either. Both are too far East to really work as connecting hubs- this would just make the existing problem of having to go East before going West apply to even more cities.

If UA had been successful in purchasing U, PIT would have been a goner, with all of that midwest and western traffic routed through ORD, which makes alot more sense.

Aside from all of our current problems, these are basic flaws about the US Airways model that prove most peoples doubts about U as a stand-alone carrier. There is no money to move the assets or purchase another entity or parts of one, if there was there are few options in the midwest (which Siegel is correct about being overhubbed).

Our many PIT employees are some of the best and most dedicated. Sadly, if US stays all of those jobs are going to be poverty wage. The best option for the PIT airport is a small focus city for an LCC (Roam, AirTran) and more service from the other carriers. The US setup will be a monopoly over air travel with high prices for poor service, and then no contribution to the local economy with its working poor jobs.

 

[Dog Wonder]

'Our many PIT employees are some of the best and most dedicated.'

I agree but it doesn't matter. A lot of those best and dedicated are either gone from the company or gone someplace else. The rest will have the same fate if they don't fit into the 'business model'.

 

[Light Years]

Exactly. And there is no business model that looks like it work.

 

[USA320Pilot]

Dog Wonder:

Dog Wonder said: “No question US Airways will dump the PIT operation like the hag they woke up with on New Year's morning if the costs are not reduced significantly. One more chance to see if it can be worked out.“

Chip answers: Dog, I agree with your comment above and your other points in this thread. Reports indicate the Company and the ACAA will announce a long-term lease on a few gates and that US Airways will commit to the hub until Labor Day. The parties will have an extension to negotiate a long-term lease, but I suspect in the end we will see facility lease rejections and a hub similar in scope to Cincinnati. However, if Dan Onorato does not cut a deal relatively soon we could see US Airways leave Pittsburgh because of its high operating costs and poor O&D traffic. The Company does have an alternate option and it’s westward.

When we evaluate the Pittsburgh - ACAA negotiations it's all about one thing:

Regards,

Chip

 

[Light Years]

Chip,

If theres alternate option, does it involve United, and if not, how about a hint? I dont doubt that they have to have thought of one.

 

[PITbull]

Chip does not have a crystal ball. And I don't believe anyone in CCY will bring him in the fold so that he can come on here and tell the public....then it wouldn't be a secret now would it?

If U's plan is to leave PIT as a HUB, then that decision has already been made, and any sweating by ACAA is all for not. Time for U to leave PIT. The Labor Coalition is already prepared. They don't want the PA Delegation to give away the house and the kitchen sink, and then only net MAA. Its time for U to take up "house" somewhere else. Pittsburgh will survive without USAirways, and so will the employees.

Who knows what the fate will be for ALL U employees going into the future. Its all about dollars$$$, I don't believe "mainline" is in the future. Period. I believe U needs the contracts and needs labor's consent to position the company to either sell it or merge. Many of the employees will be gone in the next couple years. If you see U start selling assets, "say good night". Just my humble opinion

 

[ClueByFour]

Chip,

If theres alternate option, does it involve United, and if not, how about a hint? I dont doubt that they have to have thought of one.

There is no westward option. If there were, US would not have comitted to service until labor day, the PIT-LGW hub would not have returned, and Bronner would not have made the published comments he did about wanting to say in PIT.

There is no other unhubbed city that makes sense for US to occupy that does not already have a significant LCC presence available. None. Zip. Even if there were such a beast, you would not have a 2.5 million person MSA to draw from (and let's not forget that despite the proximity to low fare alternatives at CLE and CAK, PIT's O&D numbers are still higher than CLT's). Further, even if there were such a beast, I'd hazard to guess that few municipal airport bodies would consider cutting "Alabama Dave and his midget sidekick" a good deal, based on their penchant for keeping promises, contracts, and the like.

U cannot run 35 more mainline aircraft plus 100 RJs thru PHL on top of the existing traffic. You will not connect somebody going from MCI to ROC in CLT.

Then there is the small issue of the capital investment necessary to move the hub. Since Bronner does not sound like a guy who is interested in losing even more money on this investment, it would be interesting to hear exactly how such a move would be paid for, bearing in mind that U is still bleeding cash and stands to be in danger of violating the ATSB cash convenants without having the additional expense of moving the hub.

Finally, the profit from the PHL hub is going to step onto the express elevator for the basement sometime in the late spring. Why would US want to leave a market where it still, for the most part, enjoys monopoly pricing power and an extremely large market share?

My prediction: U will take the $25 million/year in debt relief, plus the $254 million that Rendell originally offered, and the ACAA will crank up the PFC another buck or so per ticket and apply that to debt service. As a result, fewer people from PIT will be able to afford to fly.

If U does not take it, I predict expanded service from the remaining majors, $125 million in debt reduction, and Southwest in the airport before 2005. PIT folks will learn to enjoy a connection sometimes and sane airfare. The tech workers who come in from places like RDU or BNA will feel right at home.

Sanity check at 11.

 

[USA320Pilot]

Clue:

With all due respect, your analysis of the Pittsburgh - ACAA negotiations is wrong.

Respectfully,

Chip

 

[PITbull]

Clue,

You just always make so much damn sense, LOL.... I have been agreeing with just about everything you post on here, and I am pretty damn close to the situation. You use a very methodical approach to everything you write and from what you have deduced, it makes reasonable and rational sense for U.

 

[ClueByFour]

With all due respect, your analysis of the Pittsburgh - ACAA negotiations is wrong.

How?

I don't forsee a forthcoming UCT, ergo I'm wrong?

I'm spot on. Dave and Dave like to gamble and push people around. Or, in the poker parlance, bluff.

Fortunately, Roddey did not blink and it looks like Rendell won't blink. I can't speak for Onorato--jury is still out.

 

[USA320Pilot]

Clue:

You will see.

Respectfully,

Chip

 

[AKA_trvlr64]

By the way, regarding your post AKA,  who is "we?"

We..........Row is a collective WE, those of us that actually live in PGH.

Jeez,
I missed the press release announcing your election as POPE OF PIT!

When were you elected to speak for all of the residents of PIT and the surrounding area?

And while we're at it just how long is my forced exile from posting comments regarding your fair city?

Perhaps when I post comments regarding PIT I'll post under the name YinzerBob [/QUOTE]
Piney,

Get off your HIGH HORSE!! When and IF your area of the country is affected by US I will make sure I keep my mouth shut. Something you obviously can't and won't do. From one cockroach to another.

 

[PITbull]

By the way, regarding your post AKA,  who is "we?"

We..........Row is a collective WE, those of us that actually live in PGH.

Jeez,
I missed the press release announcing your election as POPE OF PIT!
When were you elected to speak for all of the residents of PIT and the surrounding area?

And while we're at it just how long is my forced exile from posting comments regarding your fair city?

Perhaps when I post comments regarding PIT I'll post under the name YinzerBob [/QUOTE]



Since WE elected him here in PIT.

 

[PITbull]

DEll,

Only thing is...LOL... whose that "wish" for?

 

[delldude]

DEll,

Only thing is...LOL... whose that "wish" for?

where did it go...where did it go...i can't see it now,where did it go?