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Federal Document Clearing House
Congressional Testimony
July 10, 2000, Monday
SECTION: CAPITOL HILL HEARING TESTIMONY
LENGTH: 1867 words
COMMITTEE:
SENATE JUDICIARY
SUBCOMMITTEE:
ANTITRUST, BUSINESS RIGHTS AND COMPETITION
HEADLINE:
TESTIMONY UNITED AIRLINES--U.S. AIRWAYS MERGER
TESTIMONY-BY: TOM MURPHY , MAYOR
BODY:
July 10, 2000 Mayor Tom Murphy Pittsburgh,
Pennsylvania Testimony Before The United States Senate Judiciary Subcommittee on
Antitrust, Business Rights and Competition Let me first begin by welcoming the
distinguished members of the Unites States Senate Judiciary Subcommittee to the
City of Pittsburgh, and for providing us this forum to express our region's
views and concerns regarding the possibility of United
Airlines' $11.6 billion acquisition of US Airways. As
you will come to recognize, we come before you today in a bipartisan, united
approach to ensure that this merger is approved with the best
interests of our region in mind. Many of you may be familiar with Pittsburgh's
recent history. The collapse of the steel industry left a hole in our economy
that we are only now beginning to replace. In addition, over the course of the
past 30 years, Pittsburgh has led the country in one major statistic--
population loss. In fact, Pittsburgh suffered the largest population loss in
America. For too long now, Pittsburgh has lagged behind while the rest of the
country has flourished during the longest economic boom in our country's
history. Today, however, I am delighted to report to you that Pittsburgh is
re-emerging onto the global marketplace. We have retooled our economy, and built
a new region on the strength of our world- renowned universities and our
top-rated medical facilities. Pittsburgh has successfully made the transition
from steel to technology. You may be aware that recently the Wall Street Journal
rated Pittsburgh as one of the hottest market for new technology, that Carnegie
Mellon University has been rated the "most wired" university in America and that
we now employ more people locally in the field of technology than in any other
industry. In addition, we are home to two of America's top ten financial
institutions in PNC Bank and Mellon Bank, and the headquarters of such renowned
companies as the H.J. Heinz Corporation and Alcoa. We now have more than $4
billion worth of economic development underway throughout our City, from the
construction of new world-class ballparks for our sports teams, to a
tripled-in-size convention center to new housing and trails all along our
riverfronts, and have managed to turn our old abandoned industrial sites into
centers of technology, new housing communities and recreational opportunities
for our citizens. Additionally, the courage and vision of the late Allegheny
County Commissioner Tom Foerster in building Pittsburgh International Airport
and acquiring thousands of surrounding acres for development positioned us well
as we head into the future. I cannot emphasize strongly enough to this
distinguished committee the importance of Pittsburgh International Airport and
the presence of US Airways as a major hub to the rebirth and
continued revitalization of our local economy. Employing more than I 1,000
persons from the tri-state area, Pittsburgh International Airport has quickly
become one of our most strategic assets, as well as a strong economic engine for
our continuing recovery. As Senators Spector and Santorum can verify, Pittsburgh
International Airport is one of our region's most important economic generators,
one that will help us shape Pittsburgh's future as we move into the new
millennium. Presently, US Airways has a major hub agreement at
Pittsburgh International Airport generating 515 flights per day both
domestically and internationally, and it is imperative that Pittsburgh
International Airport maintain its status as a major hub airport for
United Airlines. As you have already heard through the
testimony of Allegheny County Chief Executive Jim Roddey, it is important that a
number of matters that affect our region are contained in any approval of this
deal. I would like to take this opportunity to reiterate those conditions, and
to affirm that Chief Executive Roddey and I will work together to ensure that
these conditions are contained in any agreement approved by the Departments of
Justice and Transportation: We are committed to revitalizing our economy and
providing quality job opportunities for our residents. We must have a solid
commitment from United Airlines that the merger with US Airways
will maintain the more than I 1,000 jobs contained in United's initial proposal.
Significant local tax dollars were utilized to finance the construction of the
$800-million Midfield Terminal Complex at Pittsburgh International Airport.
US Airways is the principal guarantor on those bonds and pays
the majority of the outstanding debt, which totals over $700 million. We must
receive written assurances that United Airlines will assume
US Airways existing lease and guarantee payment of all future
obligations of US Airways. Pittsburgh must remain a significant
US domestic hub. As I have said, the Airport is one of the most important
economic engines in our region and must continue to serve as a hub to ensure
that continues into the future. We must be certain that the existing level of
service is maintained under United Airlines stewardship and is
included in the approval of the merger. For some time now, our
region has been working to locate a new US Airway's maintenance
facility for their aircraft here in Pittsburgh. It is clear that United will
also have a need for such a facility given the estimated size of its fleet
following the merger. We contend that Pittsburgh is the perfect
location for this new facility. I urge you to ensure that United
Airlines follow through with US Airways plans to
construct this facility, and that they commit to doing so within the next two
years. The importance of Pittsburgh International Airport and its tremendous
impact upon Southwestern Pennsylvania cannot be understated. Pittsburgh
International Airport serves as our gateway to the world, is a major center of
employment and one of the strongest engines driving our economic recovery. We
view possible merger o Unite Airlines an Airways wit cautious
optimism, and look forward to working with this committee to ensure that this
merger serves not only the interests of Southwestern
Pennsylvania, but the entire country as well. As you may have gathered, we are
quite proud of our City and our region. We are excited by the opportunities our
future holds, and hope that you too will share our enthusiasm. With your help
and leadership, Pittsburgh will continue to rebound. Once again, I want to thank
you for coming to the City of Pittsburgh today to listen to our concerns about
the potential acquisition of US Airways by United
Airlines. We have come before you today in a bipartisan effort, and are
united in our concerns and goals for this important regional asset.
LOAD-DATE: August 21, 2000, Monday
