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.

FMI: www.usairways.com