USA agrees to KPIT extension

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Must have felt threatened by SWA... -ed.

http://www.philly.com/mld/philly/news/local/6964801.htm

US Airways agrees to extension at Pittsburgh airport

CHARLES SHEEHAN
Associated Press


PITTSBURGH - The number of US Airways flights in and out of Pittsburgh
International Airport will remain largely unchanged, at least until
next September, Sen. Rick Santorum said Wednesday.

Santorum had been in talks with US Airways Chief Executive David Siegel
for the past several days trying to get a commitment to maintain
service levels while negotiations with the state continue.

The airline rejected its Pittsburgh lease in March, one of its three
hubs, shortly before emerging from bankruptcy. Terms of the lease were
set to expire on Jan. 4, and until Wednesday it remained unclear if
service would be cut early next year.

Santorum did not release any details, but suggested that the airline
was in the process of making substantial changes to its January flight
schedule and beyond.

"Mr. Siegel said he had a (schedule) that had been worked out that
would not have been a positive thing for this airport had it gone
through," Santorum said.

Had service been cut to Pittsburgh, negotiations with the state would
have been "tainted," Santorum said.

In a letter delivered to Santorum's office on Wednesday, Siegel wrote,
"If you believe it would help the progress of negotiations with the
state and local officials, I will commit to publishing a January
schedule that is consistent with the current Pittsburgh schedule of
approximately 400 flights per day."

US Airways has threatened to drop Pittsburgh as its Mid-Atlantic hub if
it doesn't get $864 million in concessions and improvements over the
next five years.

Santorum said he made a direct plea this week because the airline was
drawing up flight schedules for January, when terms of the current
contract were to expire.

"While progress, I believe, is being made, we're not close to an
agreement, and so I believe it was important to give us a little longer
window of opportunity," he said.

He said, however, that it was crucial that talks move forward quickly.

Allegheny County Chief Executive Jim Roddey, who has been in
negotiations with the airline along with Gov. Ed Rendell, applauded the
announcement.

"The agreement by US Airways to maintain its schedule beyond January is
welcome news for the citizens of southwest Pennsylvania and for the US
Airways employees," he said. "Hopefully this gesture will give us the
opportunity to negotiate a satisfactory settlement.

The state has offered $263.9 million to US Airways in federal, state
and local funding to upgrade hub terminals, hangars and other
facilities, and lower operating costs at both the Pittsburgh and
Philadelphia airports. The airline's third hub is in Charlotte, N.C.

Pittsburgh, with a $7 per-passenger cost, is the airline's costliest
hub, nearly double the $3 per-passenger cost at Charlotte, company
officials said.

State officials are expected to submit another offer to US Airways
within two weeks.

BL.
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