"Pittsburgh Airport to shuffle gate leases"

Saturday, October 15, 2005

Airport to shuffle gate leases 
By Karen Ferrick-Roman
The Beaver County (PA) Times


FINDLAY TWP. - US Airways is expected to increase the number of gates
governed by long-term leases, which would save the airline money and show
greater commitment to Pittsburgh.

The airline has 10 long-term gate leases at Pittsburgh, and the Allegheny
County Airport Authority is anticipating that number could grow to 25, said
Michael Scureman, chief financial officer for Pittsburgh International
Airport. 

The airline also has 40 gates on the more expensive month-to-month lease. If
a change were made, Scureman anticipated some of these monthly leases would
be dropped. 

"We are not currently planning to alter our gate-leasing arrangements ...,
but it is possible," said Carlo Bertolini, spokesman for America West
Airlines, US Airways' recent merger partner. "We have not, at this point,
discussed this with the airport."

The leasing arrangement could change and is a separate issue from
scheduling, Bertolini said. The airline is not planning "major growth in
Pittsburgh at this time."

US Airways and all other airlines still need to weigh in on the $138 million
budget for Pittsburgh International and the Allegheny County Airport, which
was adopted at Friday's authority board meeting and includes higher rental
and landing fees for airlines.

Expenses drive the budget; minus commissions from Airmall and other sales,
rent in airport property buildings and parking fees, all of the costs for
running the airport are borne by the airlines. 

Expenses are estimated to grow from $80 million this year to $85.2 million
in 2006. The debt service will remain at about $62 million for 2006. 

Rising energy costs are projected to add about $3 million to the 2006
budget, Scureman said; all other costs combined are expected to rise by
about $2 million. 

Even with the expected jolt in utility bills, the budget will be within 6
percent of this year's, said Kent George, airport executive director. 

The average per-passenger cost to all airlines at the airport still will be
in the $10-to-$12 range, George said. However, the actual per-passenger cost
varies with each airline, depending on its number of passengers and how it
utilizes gates and space.

The number of passengers leaving the building was projected to edge upward
by 300,000, to about 5.3 million a year.

The airport also will collect $15 million in ticketing fees that will be
used to reduce the debt.


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