"'We were lied to,' say Pittsburgh airport officials"

Wednesday, November 3, 2004

'We were lied to,' say airport officials
By Dan Fitzpatrick
The Pittsburgh (PA) Post-Gazette


Pittsburgh International Airport officials, worried once again about US
Airways, are asking a bankruptcy judge to prevent a repeat of what happened
at 11:39 p.m. on March 30, 2003.

That night, only 21 minutes before the nation's seventh-largest airline
emerged from its first bankruptcy, US Airways rejected its leases with the
Allegheny County Airport Authority, the airport's owner and operator.
Aviation officials, referring to the move in bankruptcy court documents
yesterday as a "stealth attack," claim the 11th-hour decision violated a
promise made only weeks earlier, when US Airways pledged to assume its
Pittsburgh-area contracts in a March 10, 2003 letter, according to the
documents.

"We were lied to," said airport authority solicitor Jeff Letwin.

In the bankruptcy documents filed yesterday, the airport authority asked
Alexandria, Va., bankruptcy judge Stephen Mitchell to ensure that Pittsburgh
International Airport has "adequate notice" if US Airways decides to reject
its leases again. It also wants US Airways to decide on any rejected leases
by Jan. 20, instead of the April 30 deadline requested by US Airways. The
judge will consider both requests Tuesday.

"We want some certainty as to what their plans are so we can make our
plans," Letwin said. 

US Airways spokesman David Castelveter said the April 30 extension "would
give it the time it needs to thoroughly assess all of its facility needs,"
but declined to talk about any specific airports yesterday. 

Ten months ago, US Airways signed a new long-term lease at Pittsburgh
International, giving it 10 gates. It remains the No. 1 carrier despite
drastic service reductions in recent years. The airport authority said in
its bankruptcy documents yesterday that it would be "surprising" if the
airline were to express uncertainty about its use of the airport after
bankruptcy. Given what happened in 2003, however, the authority "finds it
necessary to proceed with skepticism and caution."

In other news yesterday, US Airways met with negotiators for the machinists
union.

The company is asking the union for $220 million in annual concessions, a
request that may result in the loss of 2,800 jobs. The company plans to meet
with baggage handlers today and passenger service workers tomorrow.


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