The political leaders who will gather Wednesday in Harrisburg to craft a state response to US Airways'' demands for hundreds of millions of dollars in government largess are making brave sounds about how the Pittsburgh and Philadelphia airports won''t shrivel without the airline''s hubs, about how the airline will have to give to get.
About how they will not give away the store.
It''s a two-way street, Gov. Ed Rendell said. I mean, there''s hardly any bigger employer in the state of Pennsylvania than US Airways, and we understand that. But this is also a business ... and no one wants this to happen, no one, but if US Airways were to vanish from the face of the earth tomorrow, there would be airlines coming into Philadelphia and Pittsburgh in significant levels.
Said Allegheny County Chief Executive Jim Roddey: We''re looking at our options on the (airport) bond issue; we''re looking at our options on cutting costs; we''re looking at our options on bringing in other airlines. US Airways -- which employs nearly 15,000 people in Pennsylvania, including about 9,000 in the Pittsburgh area -- is demanding more than $649 million in local and state aid, including improvements at the Pittsburgh and Philadelphia airports, tax breaks and jet costs. Demanded improvements at Pittsburgh International Airport total $155 million.
Plus, the airline says officials of county-owned Pittsburgh International must lower costs for the airline to base its new MidAtlantic Airways regional jet subsidiary there. Just before it emerged from Chapter 11 bankruptcy on March 31, the airline rejected its $50 million in leases and contracts at Pittsburgh International.
Roddey, who will be among a local contingent in Harrisburg that will include Pittsburgh Mayor Tom Murphy, expects Wednesday''s session to help the governor and others ... craft a strategy about what we present to US Airways. I don''t think in a group of 30 people you are going to be able to put together a specific plan, but that will develop out of deliberations from the meeting.
Rendell is expected to meet with US Airways Chief Executive David Siegel in early May.
Roddey repeated his pledge to oppose paying for any improvements at Pittsburgh International that would not benefit other airlines.
I will not recommend building anything that we cannot use if US Airways is not there, said Roddey, a Republican.
A Democratic state senator said the same thing in a letter to Rendell, a fellow Democrat.
It is important to assure that any facility improvements made to the Pittsburgh International Airport be made the property of the Allegheny County Airport Authority to ensure that the airport retains control of the facilities, wrote Sen. Jay Costa of Forest Hills.
Both of Pennsylvania''s U.S. senators are expected to weigh in as well.
Sen. Arlen Specter, a Philadelphia Republican, said US Airways has to show some reciprocity in what they do.
If we are going to the mat for them and see to it that they are going to have breaks and concessions, then certainly there has got to be some reciprocity, Specter said.
Specter and Sen. Rick Santorum, a Penn Hills Republican, could lean on US Airways to be reasonable.
Specter sits on the powerful Senate Appropriations Committee and is a member of its Transportation Subcommittee. Santorum, who couldn''t be reached, is a member of the Senate Banking Committee and is on its Transportation Subcommittee.
Airlines look to the federal government for money and other aid on a variety of issues. If US Airways wants help down the road, it likely will consider the wishes of both senators -- and Specter already is annoyed. He complained that officials were blindsided when the airline renounced its Pittsburgh International leases and contracts just minutes before emerging from Chapter 11 protection.
The senators could be a key source of negotiating strength for Pennsylvania, according to Pete Flaherty, former Allegheny County commissioner and former Pittsburgh mayor. Flaherty was a county commissioner when the county struck a deal with US Airways more than a decade ago to build and finance Pittsburgh International.
The airline''s back is against the wall, so they''re going to use every leverage they can, said Flaherty, of Mt. Lebanon. It remains to be seen if they can get away with it because they need federal help. ... There''s leverage both ways, and (Specter and Santorum are) a leverage in favor of the county.
Although possible, most officials involved in the negotiations say it''s unlikely US Airways will leave Pittsburgh altogether. Still, Roddey said he doesn''t have enough information to be optimistic or pessimistic about the talks.
I think US Airways will stay in Pittsburgh and keep the regional jet center here if we get our costs low enough and respond to their requests at a level they think is acceptable. I don''t know what level that is. ...
We''re going to identify what resources we have, what options we have and our recommendations for what we might offer to US Airways or might not offer.
Pittsburgh International isn''t going it alone. Philadelphia International Airport spokesman Mark Pesce said the airport has discussed the airline''s demand for more than $200 million in improvements.
We are reviewing and considering US Airways'' request for Philadelphia, but no decision has been made to date, he said.
US Airways also asked officials of the Charlotte (N.C.) International Airport, its biggest hub, to reduce costs. Airport Director Jerry Orr told the airline it would have to give up space in return, and the talks went no further.
US Airways has commented little, other than to say it intends to negotiate with Rendell and the contingent from Allegheny County and Philadelphia.
U.S. Rep. Tim Murphy, an Upper St. Clair Republican, said Rendell and company should consider whether it''s wise to give anything to the airline.
His point: There might be better investments for millions of dollars.
Is the money better off in attracting an office development here or office headquarters or for transportation infrastructure? Murphy said. I think all those things need to be looked at. No airline can give any guarantee it will be here several years from now.
By Jim Ritchie
TRIBUNE-REVIEW
Monday, April 28, 2003
Personal note: The end is not inevitable for this region if U goes away!
About how they will not give away the store.
It''s a two-way street, Gov. Ed Rendell said. I mean, there''s hardly any bigger employer in the state of Pennsylvania than US Airways, and we understand that. But this is also a business ... and no one wants this to happen, no one, but if US Airways were to vanish from the face of the earth tomorrow, there would be airlines coming into Philadelphia and Pittsburgh in significant levels.
Said Allegheny County Chief Executive Jim Roddey: We''re looking at our options on the (airport) bond issue; we''re looking at our options on cutting costs; we''re looking at our options on bringing in other airlines. US Airways -- which employs nearly 15,000 people in Pennsylvania, including about 9,000 in the Pittsburgh area -- is demanding more than $649 million in local and state aid, including improvements at the Pittsburgh and Philadelphia airports, tax breaks and jet costs. Demanded improvements at Pittsburgh International Airport total $155 million.
Plus, the airline says officials of county-owned Pittsburgh International must lower costs for the airline to base its new MidAtlantic Airways regional jet subsidiary there. Just before it emerged from Chapter 11 bankruptcy on March 31, the airline rejected its $50 million in leases and contracts at Pittsburgh International.
Roddey, who will be among a local contingent in Harrisburg that will include Pittsburgh Mayor Tom Murphy, expects Wednesday''s session to help the governor and others ... craft a strategy about what we present to US Airways. I don''t think in a group of 30 people you are going to be able to put together a specific plan, but that will develop out of deliberations from the meeting.
Rendell is expected to meet with US Airways Chief Executive David Siegel in early May.
Roddey repeated his pledge to oppose paying for any improvements at Pittsburgh International that would not benefit other airlines.
I will not recommend building anything that we cannot use if US Airways is not there, said Roddey, a Republican.
A Democratic state senator said the same thing in a letter to Rendell, a fellow Democrat.
It is important to assure that any facility improvements made to the Pittsburgh International Airport be made the property of the Allegheny County Airport Authority to ensure that the airport retains control of the facilities, wrote Sen. Jay Costa of Forest Hills.
Both of Pennsylvania''s U.S. senators are expected to weigh in as well.
Sen. Arlen Specter, a Philadelphia Republican, said US Airways has to show some reciprocity in what they do.
If we are going to the mat for them and see to it that they are going to have breaks and concessions, then certainly there has got to be some reciprocity, Specter said.
Specter and Sen. Rick Santorum, a Penn Hills Republican, could lean on US Airways to be reasonable.
Specter sits on the powerful Senate Appropriations Committee and is a member of its Transportation Subcommittee. Santorum, who couldn''t be reached, is a member of the Senate Banking Committee and is on its Transportation Subcommittee.
Airlines look to the federal government for money and other aid on a variety of issues. If US Airways wants help down the road, it likely will consider the wishes of both senators -- and Specter already is annoyed. He complained that officials were blindsided when the airline renounced its Pittsburgh International leases and contracts just minutes before emerging from Chapter 11 protection.
The senators could be a key source of negotiating strength for Pennsylvania, according to Pete Flaherty, former Allegheny County commissioner and former Pittsburgh mayor. Flaherty was a county commissioner when the county struck a deal with US Airways more than a decade ago to build and finance Pittsburgh International.
The airline''s back is against the wall, so they''re going to use every leverage they can, said Flaherty, of Mt. Lebanon. It remains to be seen if they can get away with it because they need federal help. ... There''s leverage both ways, and (Specter and Santorum are) a leverage in favor of the county.
Although possible, most officials involved in the negotiations say it''s unlikely US Airways will leave Pittsburgh altogether. Still, Roddey said he doesn''t have enough information to be optimistic or pessimistic about the talks.
I think US Airways will stay in Pittsburgh and keep the regional jet center here if we get our costs low enough and respond to their requests at a level they think is acceptable. I don''t know what level that is. ...
We''re going to identify what resources we have, what options we have and our recommendations for what we might offer to US Airways or might not offer.
Pittsburgh International isn''t going it alone. Philadelphia International Airport spokesman Mark Pesce said the airport has discussed the airline''s demand for more than $200 million in improvements.
We are reviewing and considering US Airways'' request for Philadelphia, but no decision has been made to date, he said.
US Airways also asked officials of the Charlotte (N.C.) International Airport, its biggest hub, to reduce costs. Airport Director Jerry Orr told the airline it would have to give up space in return, and the talks went no further.
US Airways has commented little, other than to say it intends to negotiate with Rendell and the contingent from Allegheny County and Philadelphia.
U.S. Rep. Tim Murphy, an Upper St. Clair Republican, said Rendell and company should consider whether it''s wise to give anything to the airline.
His point: There might be better investments for millions of dollars.
Is the money better off in attracting an office development here or office headquarters or for transportation infrastructure? Murphy said. I think all those things need to be looked at. No airline can give any guarantee it will be here several years from now.
By Jim Ritchie
TRIBUNE-REVIEW
Monday, April 28, 2003
Personal note: The end is not inevitable for this region if U goes away!
