Mon, Sep 22, 2003
Western Pennsylvania Gauges Possible Economic Impact
It's about as cheery in
Pittsburgh these days as a local bar that's just run out of Iron
City Beer. US Airways continues to threaten shutting down its
Pittsburgh hub and only now is the city coming to grips with the
potential economic impact.
A US Airways study released last week indicates pulling out of
Pittsburgh would cost the Iron City 16,800 jobs. In all, the
economic impact on the region would be stupefying. The cost of lost
tourism alone, according to the study, would be $2 billion a
year.
US Airways sent results from the study by email to its frequent
fliers.
US Airways spokesman David Castelveter said Thursday, "Please
don't read in between the lines. This e-mail was sent to passengers
within a 200-mile radius of Pittsburgh to let them know what we're
doing and the issues we face. If we were to leave, it would greatly
impact them. We feel an obligation to keep them informed."
War Tactic?
Allegheny County Chief Executive Jim Roddey said the airline
sent the e-mails to "build public pressure" as US Airways looks to
renegotiate its leases at airports in Pittsburgh and
Philadelphia.
Nonetheless, Roddey said the report doesn't say anything leaders
in western Pennsylvania didn't already know. "This is an important
issue and has an important impact on the region, or else we
wouldn't be offering millions of dollars," Roddey said.
Pennsylvania has countered the US Airways demand with an offer of
$236.9 million.
Pennsylvania Gov. Ed Rendell had not reviewed the economic
impact study as of Thursday afternoon and had no comment on its
contents, said his spokeswoman, Kate Philips.
US Airways, which controls 80 percent of the gates and therefore
pays most of the airport's bond debt under a deal struck when a new
Pittsburgh terminal opened in 1992, wants $500 million cut from the
$673 million in outstanding bond debt. Allegheny County officials
say that kind of a cut won't work. They're upset because the new
terminal was designed to specifications put forth by the
airline.
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