Copyright 2000 eMediaMillWorks, Inc.
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Document Clearing House, Inc.)
Federal Document Clearing House
Congressional Testimony
July 18, 2000, Tuesday
SECTION: CAPITOL HILL HEARING TESTIMONY
LENGTH: 2586 words
COMMITTEE:
SENATE COMMERCE, SCIENCE AND TRANSPORTATION
HEADLINE: TESTIMONY THE NATIONAL ASSESSMENT REPORT
TESTIMONY-BY: JAMES C. RODDEY , CHIEF EXECUTIVE OF
ALLEGHENY COUNTY PENNSYLVANIA
BODY:
July 10, 2000
Testimony of James C. Roddey Chief Executive of Allegheny County Pennsylvania
Before The United States Senate Judiciary Subcommittee on Antitrust, Business
Rights and Competition Good morning, Mr. Chairman and Committee Members. My name
is Jim Roddey and I am the Chief Executive of Allegheny County, Pennsylvania. I
would like to thank the Committee for this opportunity to present our region's
views on United Airlines' $11.6 billion acquisition of
US Airways. In the early 1980s unemployment in Pittsburgh was
at its height following the closure of virtually all the major steel mills. The
region suffered the largest job loss per capita in our country's history. By the
early 1990's, the city was only reporting half the job growth of the national
average. We have been working diligently to recover, and finally our region is
beginning to grow. 120,000 people are employed in the technology field. That
represents 12 % of the workforce and 18% of the payroll. Our colleges and
universities are world-renowned and we stand among the top ten centers in
medical research. Today, Pittsburgh is the corporate headquarters of many
Fortune 500 companies. We have numerous business parks nurturing both U.S. and
foreign investment. Multinational companies like Sony and Bayer have located in
the region and many local corporations like H.J. Heinz, Alcoa and PPG continue
to succeed in the global marketplace. Pittsburgh International Airport (PIT) is
the world's gateway for Pittsburgh, Southwestern Pennsylvania, northern West
Virginia, and eastern Ohio. It is an integral part of the economic fabric of its
serving area, creating over 18,000 direct airport-related jobs and over $3.5
billion a year in economic impact. PIT has received worldwide recognition for
its now famous Airmail, featuring over 100 retail, specialty services and food
and beverage stores all at guaranteed street prices. Its distinctive 900-acre
X-shaped terminal is designed to give connecting passengers easy access to all
75 gates without ever changing levels or terminals. And just last year, because
of it's traveler-friendly design, the readers of Cond6 Nast Traveler magazine
voted Pittsburgh International Airport the best airport in North America and the
third best airport in the world. Pittsburgh International is an expanding
airport with a significant list of development projects. This month, we opened a
Hyatt-Regency airport hotel and conference center. We also plan to more than
double the cargo ramp and building capacity, and we are creating a Business
Aviation Center and a 300,000 square foot Airside Business Park. PIT covers more
than 12,000 acres, making it the third-largest airport complex in the U.S., so
large that you could fit Atlanta and Chicago O'Hare airports within its
boundaries. The huge amount of space we have available gives us many advantages.
The apron is large enough for one aircraft to pull back from the gate while
another is pulling into the same space. The system of taxiways surrounding the
entire airside building allows aircraft to exit the runways at a greater speed,
taxi in either direction and avoid delays. And we have excess airspace and
airfield capacity to accommodate future growth. Located roughly midway between
New York and Chicago, Pittsburgh lies within one hour's flying time of nearly 50
percent of the U.S. and Canadian populations or 71.3 million people, and 63
percent of U.S. manufacturing output. And don't worry about the weather. Smooth
operations regardless of the weather make PIT North America's airport of choice
for reliability. Clearly, Pittsburgh International Airport is one of the
Southwestern Pennsylvania region's most significant assets. Presently,
US Airways has a major hub agreement at Pittsburgh
International Airport generating 515 flights per day both domestically and
internationally. With United Airlines and US Airways
announcement on May 23, 2000, I am deeply concerned not only about the continued
presence of a major hub at Pittsburgh International Airport, but also for the
continued employment of the approximately 11,700 employees of US
Airways in Southwestern Pennsylvania. With the announced acquisition by
United of US Airways, it is imperative that a number of matters
that affect our region are contained in any Conditions of Approval, which the
Department of Justice and Department of Transportation would make, if they
should decide to grant approval for this merger. While the
discussions I have had with James Goodwin of United Airlines
and Stephen Wolf of US Airways have been very positive,
contracts between parties often do not turn out as contemplated. Therefore, I
request that this Committee urge the Department of Justice to ensure the
following items are addressed in their Order: 1.With the hardship endured by our
region in the 70's and 80's, one of our foremost concerns is for the
approximately 11,700 individuals currently employed by US
Airways in Southwestern Pennsylvania, eastern Ohio and northern West
Virginia. We need an absolute commitment contained in the Conditions of Approval
of this merger that these jobs will be maintained in our region
beyond United's two-year pledge. 2.The taxpayers of Allegheny County provided
the financial vehicle through bonds to fund the construction of the $800-
million Midfield Terminal Complex at Pittsburgh International Airport.
US Airways is the principal guarantor on those bonds.
US Airways presently uses nearly 90 percent of the midfield
terminal and pays the majority of the outstanding debt, which totals over $700
million. We need written assurances that United Airlines will
assume US Airways existing lease and guarantee payment of all
future obligations of US Airways. 3.With significant federal
support and the expectation that it would be a major hub, Pittsburgh
International Airport opened in 1992. US Airways currently
operates approximately 515 flights a day to I 10 non-stop destinations
throughout the US and Europe from Pittsburgh International Airport. The Airport
is the economic engine of the region and provides us access to the world and the
world access to our region. While United flies mostly east-west domestic flights
and international routes, and US Airways strength is in its
north-south routes on the East Coast, we must be certain that the existing level
of service is maintained and included in the Conditions of Approval of the
merger. On a long-term basis, Pittsburgh must remain a
significant US domestic hub. 4.By year's end, US Airways and United
Airlines will have an extensive fleet of Airbus aircraft with numerous
new aircraft on order. Both airlines have indicated a need for a new maintenance
facility to perform maintenance and safety checks on these aircraft. An
excellent, trained workforce is available right now in Southwestern Pennsylvania
to perform these tasks and the needed facilities have already been designed for
construction at Pittsburgh International Airport. We ask your help in urging
United Airlines to follow through with US
Airways plans to construct this facility, and commit to do so within
the next two years. Pittsburgh International Airport is strategically located in
North America to reach much of the population of the United States and Canada
within in 1 -hour flying time. National and international travelers give
Pittsburgh International Airport an A+ rating. Our workforce and work ethic are
second to none. We are capable of handling any aircraft used today and our
facilities are easily expandable. Not only is Pittsburgh International Airport
an economic generator in terms of jobs, but it serves as a major connection hub,
linking Pittsburgh businesses, passengers and cargo with cities around the
world. It is extremely well located in every sense and its physical structure is
flexible, functional, attractive and expandable. Mr. Chairman and Committee
members, I ask your assistance to strongly convey to the Departments of Justice
and Transportation our need for guarantees to preserve the economic future of a
region rich in resources. Pittsburgh is poised for takeoff. Thank you for the
opportunity to present this information to you today.
LOAD-DATE: August 18, 2000, Friday
