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Roddey: All airlines are equal

Jim Ritchie
By Jim Ritchie
3 Min Read Oct. 2, 2003 | 23 years Ago
| Thursday, October 2, 2003 12:00 a.m.
Any deal offered to keep US Airways in Pittsburgh will also benefit other airlines that fly here, Allegheny County Executive Jim Roddey said in response to Delta Air Lines’ remarks Wednesday regarding ongoing negotiations with its competitor. “I will guarantee Delta Air Lines and every other airline — either flying there today or considering it — any cost relief we give to US Airways will be given to every airline,” Roddey said. “Whether it’s facility improvements or lowering costs, everyone will be treated equally.” Atlanta-based Delta, which is the No. 2 carrier at Pittsburgh International, cautioned yesterday that any deal aimed at keeping US Airways should also benefit other airlines flying from the airport. “Other carriers should not be discriminated against by the proposed changes or asked to subsidize US Airways costs,” Delta spokeswoman Katie Connell said. Delta’s comments come as the Allegheny County Airport Authority is crafting a response to a US Airways’ proposal that calls for “new revenues” to help lower the authority’s debt and ultimately US Airways’ annual costs in Pittsburgh. “We would like to make sure there is fairness, so that in the end, any cost relief that would be agreed upon would benefit all carriers, not just one carrier,” Connell said. Delta is the world’s second-largest airline and operates hubs in Atlanta, Cincinnati, Dallas and Salt Lake City. Negotiators for the state, authority and airline have not disclosed the airline’s proposal, issued Sept. 17 in Harrisburg. Neither Roddey, Airport Authority Executive Director Kent George, nor Gov. Ed Rendell would discuss how far they are willing to go to keep the US Airways hub at Pittsburgh International. The core issue is US Airways’ demand that the authority find a way to slash its $673 million in outstanding debt by $500 million, a move that would significantly lower US Airways’ annual costs at Pittsburgh International. Of the airline’s $62 million in annual payments to the authority, about $50 million is used to repay debt. “This is not about US Airways — this is about reducing the debt at the Pittsburgh International Airport, which benefits everyone who operates in that facility,” said US Airways spokesman David Castelveter. The state and authority are crafting a response to the airline and a meeting is expected to occur this month. Although negotiators will not discuss specifics, Rendell has said possibilities include restructuring the authority bonds and tapping a new state bond issue. It’s unclear how either option would be employed. Rendell spokeswoman Kate Philips would not comment about the possibilities. At Pittsburgh International, there are 11 signatory airlines, which are carriers that have signed agreements to help repay the airport debt. Those that don’t sign pay higher airport fees.


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