"Pittsburgh: Keeping air service to London could be complicated"

Wednesday, August 18, 2004

Keeping air service to London could be complicated
US Airways, other airlines could move the route to another city
By Mark Belko
The Pittsburgh (PA) Post-Gazette


Keeping nonstop air service between Pittsburgh and London could end up
becoming far more complicated than finding another carrier willing to
fly the route being abandoned by US Airways in November.

In addition to losing the nonstop flights, the region also could end up
losing the right to fly the Pittsburgh-to-London route, which was
awarded to US Airways in 2000 after a contentious battle between the
British and U.S. governments.

In fact, the London route, commonly known as a gateway, is such a
coveted prize in the aviation industry that local political and airport
leaders could end up competing against US Airways and possibly other
airlines for the rights to it.

Once US Airways ends the service Nov. 7, it would have the option of
applying to the U.S. Department of Transportation to transfer the rights
to another city.

Other airlines also would be able to apply to secure the rights to the
London route, either for the purpose of flying it from Pittsburgh or
from another city at which it offers service.

The number of gateways to London's Heathrow and Gatwick airports is
restricted under the bilateral agreement between the United States and
Great Britain, and none currently is available. As a result, there could
be keen interest from other airlines in securing the rights once US
Airways drops Pittsburgh-to-London service.

"There is interest in serving the United Kingdom. We have a very
restricted agreement with the United Kingdom. We expect interest in the
market," said William Mosley, a spokesman for the U.S. Department of
Transportation.

US Airways spokeswoman Amy Kudwa said the airline has not decided
whether it will seek to transfer the rights to the route to another
city. The airline also flies nonstop to London from Philadelphia, but
would not be able to transfer the rights to that airport. US Airways
also offers nonstop service to London from Charlotte, N.C.

Kent George, executive director of the Allegheny County Airport
Authority, said regional leaders would fight to keep the rights to the
London route.

"If I have a replacement carrier and need it for London, we'll do
everything in our power to retain the authority," he said. "We will work
to retain that service and believe we can retain that service."

The Airport Authority, county Chief Executive Dan Onorato and the
Allegheny Conference on Community Development, through the Pittsburgh
Regional Alliance, have been talking to other carriers about picking up
the service to London and to Frankfurt, Germany, which US Airways also
will drop in November.

"We are looking at all opportunities to keep the [London] authority but
one of the key things you need to retain the authority is having a
carrier willing or ready to assume the service and, very bluntly, we do
not have a carrier today to assume the service," George said.

Even if Pittsburgh loses the route, there still may be opportunities for
airlines to fly into Great Britain's Manchester or Stansted airports
from Pittsburgh, George said.

US Airways ended up getting the Pittsburgh-to-London route in July 2000
after a pitched battle between the British and U.S. governments over
aviation rights between the two countries.

It was only after months of negotiations, pressure from local officials,
and the intervention of former U.S. Rep. Bud Shuster, then powerful
chairman of the House Transportation and Infrastructure Committee, that
officials ended up reaching an agreement that allowed US Airways to fly
to London from Pittsburgh.

As for the Pittsburgh-Frankfurt flight, US Airways Chief Executive
Officer Bruce Lakefield yesterday rejected a request by U.S. Sen. Arlen
Specter that the airline continue the nonstop flight beyond Nov. 7.

In a letter to Specter, Lakefield said the flight posted a net loss at
current levels of traffic volume at the airport, and said "the prospects
only get worse" as US Airways cuts service and connecting traffic at the
airport later this summer and fall.

"Because we project significant losses for the fourth quarter 2004 and
the first quarter 2005, in good conscience, I cannot ask our employees
to take pay cuts while at the same time fly a route that I know will
lose money," Lakefield said.


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