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Wed, Mar 18, 2009

NY Ferry Operator Considers Lawsuit Against US Airways

Says Flight 1549 Rescue Further Strapped Already Shaky Company

The first lawsuit may soon be filed related to the January 15 ditching of US Airways Flight 1549 in New York's Hudson River... and it might not come from an 'emotionally distressed' passenger.

Crain's New York Business reports NY Waterway, operator of the commuter ferry that came to the rescue of many of the 155 people onboard the airliner, is preparing to sue US Airways for financial damages stemming from the accident. NY Waterways operates a ferry service from Manhattan Island to New Jersey... and is struggling financially. Not helping that situation was the sudden arrival of an Airbus A320 squarely on its place of business, and the resulting closure of a large section of the Hudson while investigators combed the area.

In the 48 hours following the ditching, NY Waterways operated 14 ferries in support of the investigation. It also opened its facilities to serve as emergency headquarters for rescuers and investigators, and as triage centers for the survivors. NY Waterways also paid its employees overtime to assist in the rescue effort... while taking in almost no passenger revenue in that time.

Though his company has received a large amount of positive press for its role in the successful rescue, as well as accolades from the US Coast Guard, NY Waterways CEO Arthur Imperatore Sr. says he has yet to receive any acknowledgement -- publicly or financially -- from US Airways for the company's efforts.

"We are embattled," said Imperatore, 83. "The question is whether we can survive."

Admittedly, that was a question long before Flight 1549 ditched in the river. Passenger revenue has been declining since last fall, hitting a low of 26,400 daily commuters in February. The company also faces the need to return its equipment in September, when its current loan with CIT Group expires. Thanks to the credit crunch, that lease likely won't be renewed.

For the past several years, Imperatore has used a chunk of his own fortune -- said to be as high as $20 million -- from the shipping business to keep NY Waterways afloat. He wants a public entity, such as the Port Authority of New York & New Jersey, to take over the company... saying NY Waterways serves as part of the area mass-transit system, so it should be eligible for public money.

The company has also served an important role in a number of other area crises, including in the aftermath of 9/11. "They are generally the Good Samaritan that responds to any emergency on the water," said US Coast Guard Captain Robert O'Brien.

US Airways declined comment on any pending litigation, citing corporate policy.

(Image of NY Waterways ferry assisting rescue courtesy of Gregory Lam)

FMI: www.nywaterway.com, www.usairways.com

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