US AIRWAYS SIGNS LEASE AGREEMENT FOR 10 GATES AND RELATED FACILITIES AT PITTSBURGH INTERNATIONAL AIRPORT
Commitment to Hub Awaits Broader Agreement on Debt Relief
ARLINGTON, Va., Jan. 5, 2004 -- US Airways (NASDAQ: UAIR) has signed a long-term lease agreement for 10 gates and related terminal and support facilities at Pittsburgh International Airport, to replace the lease that was rejected as part of the company’s Chapter 11 reorganization.
Under the agreement, US Airways will lease 10 gates and associated operations and ticketing space on a signatory basis through 2018. The balance of 40 gates and other facilities currently used by US Airways and its US Airways Express carriers at Pittsburgh will be leased on a month-to-month, non-signatory basis.
Additionally, US Airways has signed a three-year lease agreement for its current on-airport support facilities, including maintenance hangars, cargo, mail sorting and foodservice facilities. This includes an option for either party to terminate the agreement with respect to all or part of the facilities after the first year.
The company said that it will continue to negotiate with the Allegheny County Airport Authority, Allegheny County and the Commonwealth of Pennsylvania in the hope that a broader agreement can be reached in order to maintain its hub operations at Pittsburgh. State and local officials are exploring whether new revenue sources can be devoted to relieve airlines operating at Pittsburgh of some of the cost of servicing the $640 million debt load the airport carries. In the meantime, US Airways has agreed to operate a schedule close to its existing service at Pittsburgh through September 2004, in order to allow negotiations to continue.
"We are quite appreciative of the leadership Allegheny County Executive Dan Onorato has already demonstrated in reaching an alternative agreement for facilities while we collectively explore all other options," said Christopher Chiames, US Airways’ senior vice president of corporate affairs. "We remain optimistic that Mr. Onorato can work constructively with Governor Rendell and the Airport Authority to identify new sources of revenue for the airport. Our discussions over the past several months have demonstrated that all parties recognize that this is about new revenue and lowering the cost of doing business at the airport for all airlines, and not a subsidy targeted to US Airways."
Chiames said that US Airways officials recognize that a budget crisis in the state, and competing state and local fiscal priorities have extended the process beyond what was originally envisioned.
"When we rejected the leases last March, effective Jan. 5, 2004, we believed it gave all parties plenty of time to find a solution that would allow us to cost-effectively maintain our Pittsburgh hub," said Chiames. "Despite the lengthy process, our conversations with public officials remain constructive, and at the same time, they recognize that we are trying to complete a financial restructuring that did not end with our emergence from Chapter 11 last year. We understand that public officials have some difficult choices to make, and in turn, they understand that we must begin making business decisions very soon and that these negotiations must be concluded quickly."
As a signatory for 10 gates and related facilities, US Airways still has the largest financial commitment to the Allegheny County Airport Authority of any airline serving Pittsburgh.
US Airways currently serves nearly 100 destinations nonstop with approximately 375 daily flights from Pittsburgh International Airport.
Reporters needing additional information should contact US Airways Corporate Affairs at (703) 872-5100.
Commitment to Hub Awaits Broader Agreement on Debt Relief
ARLINGTON, Va., Jan. 5, 2004 -- US Airways (NASDAQ: UAIR) has signed a long-term lease agreement for 10 gates and related terminal and support facilities at Pittsburgh International Airport, to replace the lease that was rejected as part of the company’s Chapter 11 reorganization.
Under the agreement, US Airways will lease 10 gates and associated operations and ticketing space on a signatory basis through 2018. The balance of 40 gates and other facilities currently used by US Airways and its US Airways Express carriers at Pittsburgh will be leased on a month-to-month, non-signatory basis.
Additionally, US Airways has signed a three-year lease agreement for its current on-airport support facilities, including maintenance hangars, cargo, mail sorting and foodservice facilities. This includes an option for either party to terminate the agreement with respect to all or part of the facilities after the first year.
The company said that it will continue to negotiate with the Allegheny County Airport Authority, Allegheny County and the Commonwealth of Pennsylvania in the hope that a broader agreement can be reached in order to maintain its hub operations at Pittsburgh. State and local officials are exploring whether new revenue sources can be devoted to relieve airlines operating at Pittsburgh of some of the cost of servicing the $640 million debt load the airport carries. In the meantime, US Airways has agreed to operate a schedule close to its existing service at Pittsburgh through September 2004, in order to allow negotiations to continue.
"We are quite appreciative of the leadership Allegheny County Executive Dan Onorato has already demonstrated in reaching an alternative agreement for facilities while we collectively explore all other options," said Christopher Chiames, US Airways’ senior vice president of corporate affairs. "We remain optimistic that Mr. Onorato can work constructively with Governor Rendell and the Airport Authority to identify new sources of revenue for the airport. Our discussions over the past several months have demonstrated that all parties recognize that this is about new revenue and lowering the cost of doing business at the airport for all airlines, and not a subsidy targeted to US Airways."
Chiames said that US Airways officials recognize that a budget crisis in the state, and competing state and local fiscal priorities have extended the process beyond what was originally envisioned.
"When we rejected the leases last March, effective Jan. 5, 2004, we believed it gave all parties plenty of time to find a solution that would allow us to cost-effectively maintain our Pittsburgh hub," said Chiames. "Despite the lengthy process, our conversations with public officials remain constructive, and at the same time, they recognize that we are trying to complete a financial restructuring that did not end with our emergence from Chapter 11 last year. We understand that public officials have some difficult choices to make, and in turn, they understand that we must begin making business decisions very soon and that these negotiations must be concluded quickly."
As a signatory for 10 gates and related facilities, US Airways still has the largest financial commitment to the Allegheny County Airport Authority of any airline serving Pittsburgh.
US Airways currently serves nearly 100 destinations nonstop with approximately 375 daily flights from Pittsburgh International Airport.
Reporters needing additional information should contact US Airways Corporate Affairs at (703) 872-5100.
although some other carriers could get about 100 or more out of the same gates.
