"The terminal patient - US Air is sick, and it might be catching"

Monday, January 10, 2005

The terminal patient - US Air is sick, and it might be catching
By Jennifer Heldt Powell
The Boston (MA) Herald


The feared demise of US Airways could disrupt Logan International Airport
for months, forcing private vendors to cut jobs and move employees to other
locations until other airlines could be moved in. 
 
``There's a lot of uncertainty,'' said a worker for Prime Flight Aviation
Services, which provides check-in and other courtesy services for US Air. 
 
The terminal the airline occupies caters to just a handful of other
airlines, so the loss would cut foot traffic considerably. 
 
Other workers are less concerned. 
 
``I'd just go work at another restaurant,'' one bartender said. 
 
Airport officials say they're prepared if US Airways folds. 
 
``We hope that it's not the case,'' said Thomas J. Kinton Jr., director of
aviation for the Massachusetts Port Authority, which operates Logan. ``US
Air has been here for many years and we hope they'll be here for many more
years.'' 
 
But just in case, the Logan officials have discussed plans with vendors who
run the coffee and magazine shops. 
 
Officials at US Airways, which is in bankruptcy for the second time in two
years, said late last year that they may have to close the airline unless
they can cut pay and benefits for workers and retirees. They appear to be
moving in the right direction. 
 
Last week, flight attendants agreed to a 9 percent pay cut as part of
management's plan to save $94 million. Also last week, a bankruptcy judge
cleared the way for the company to cancel its union contract with 8,450
mechanics, bag handlers and stock clerks, Bloomberg News reported. 
 
US Air agreed to delay acting until baggage handlers represented by the
International Association of Machinists vote on the airline's final offer.
In turn, workers agreed not to strike or take other action. 
 
Massport officials keep a close eye on all the changes in the industry and
are constantly working through different scenarios, Kinton said. ``We've
been through this before.'' 
 
The airline has more than 100 inbound and outbound Logan flights daily and
more than 700 local employees. It pays an estimated $1 million in landing
fees and rent to Massport. 
 
The impact of an airline shutdown could be dulled somewhat by the opening of
a terminal in March. Vendors are already making plans to expand to shops
there. 
 
That opening, which marks the tail end of a major renovation project, will
also mean a shift in airline locations. The last portion of the project is
more parking. 
 
Logan would be hit less by the loss of a carrier such as US Airways than
other cities because it isn't a hub for the airline, Kinton said. Although
it's the third-biggest airline at Logan, it still counts for less than 20
percent of passengers. 
 
The airport has lost airlines before and recovered. This time, it is likely
that other airlines would be interested in the space, Kinton said. ``This is
a very strong market. We have customers who need to travel.'' 
 
JetBlue, for instance, is adding flights and plans to bring on several
planes this year. The discounter hopes to expand even more next year. 
 
Airport officials have ongoing behind-the-scenes discussions with other
airlines, Kinton said. 
 
They are also working with vendors on contingency plans if US Air or another
airline folds. 
 
``They would have to adjust the amount of service they provide,'' he said. 
 
The hardest hit might be Prime Flight, which has a contract directly with US
Air. Some of its 110 employees could be relocated to other airlines, but the
company doesn't have enough other contracts to absorb them all, a source
said. 
 
Prime Flight President Keith Wolken declined to comment whether US Airways
had contingency plans. 
 
``We support this important airline, and we are confident it will be
providing air service to Boston travelers for many years to come,'' Wolken
said. 
 
Other vendors are less concerned. 
 
``At this point, our feeling is because that's a newly remodeled terminal,
it would be attractive for another airline to move in,'' said Matt Didonna,
comptroller of HMS Host Inc. The company operates Starbucks at the terminal
and Ozone-Bos, which it created with celebrity chef Todd English.


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