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Copyright 2000 P.G. Publishing Co.  
Pittsburgh Post-Gazette

May 28, 2000, Sunday, TWO STAR EDITION

SECTION: LOCAL, Pg. A-1

LENGTH: 1395 words

HEADLINE: IS PITTSBURGH'S AIRPORT READY FOR TAKEOFF?

BYLINE: MARK BELKO AND FRANK REEVES, POST-GAZETTE STAFF WRITERS

BODY:

 
When Pittsburgh International Airport's new terminal opened in 1992, predictions about the airport's future were as boundless as the skies. But the $ 800 million facility has never fully met those expectations, with passenger volumes and surrounding development falling far short of projections.

It has been easy to dismiss the shortcomings as failings of the airport's major carrier, US Airways, which struggled through much of the decade. An early ' 90s recession, a commercial real estate collapse, sluggish job growth and stagnant population also were hindrances.

Now, however, Pittsburgh International is confronting perhaps the biggest test of its potential. Will the airport's strengths -- its prime location as a connecting point for east-west and Northeast flights, its focus on passenger amenities such as big-name stores and restaurants and its almost limitless ability to expand -- be enough to maintain its status as a hub airport? Last week's announcement of the biggest merger in U.S. airline history, the $ 11.6 billion sale of US Airways to United Airlines, has shocked regional business and political leaders, who fear Pittsburgh International will no longer be a hub for the new mega-airline.

They worry that it could result in a loss of thousands of airline jobs and undermine efforts to attract jobs and investment. Reliable and frequent air transportation are key selling points to companies looking to locate in the region.

"We're trying to sell the region as the place to come. And transportation is a key," said Allegheny County Executive James Roddey.

The Republican businessman has called for a multistate summit of leaders to devise strategies to ensure that US Airways and United preserve local jobs and maintain flight service. He's worried the two companies may not live up to the pledges they made during Wednesday's media blitz unveiling the merger.

During that show, United Senior Vice President Christopher Bowers told local reporters that Pittsburgh definitely was in the merged airline's plans. With the merger, United planned to add two nonstop flights to Denver, one to Portland, Ore., and one to San Jose, Calif., he said, as well as a number of one-stop international flights to Asia and Latin America.

Bowers added that United was "dedicated to making Pittsburgh an even more important domestic hub than it is today," though he did not go into details beyond the additional nonstop flights.

Roddey, who plans to meet with US Airways Chairman Stephen Wolf and United Chairman James E. Goodwin this week, isn't satisfied with press conference promises, which also included a no-layoffs guarantee for at least two years upon completion of the merger.

"I'm worried about comments like no furloughs for two years and I'm worried about whether or not they keep this as a hub," Roddey said. "They say that they are but I want to be sure that that's the case. And also I'm worried about the maintenance facility," which US Airways had vaguely agreed to expand to preserve more than 5,000 maintenance and related jobs.

Roddey fears that of US Airways' three principal hubs, Pittsburgh, Philadelphia and Charlotte, N.C., Pittsburgh could be the most vulnerable to cutbacks, if not outright elimination of its status as a hub, so-called because connecting flights flow into it like spokes on a bicycle wheel.

He cited a key advantage Philadelphia has over Pittsburgh -- population. It generates a lot more origination and destination traffic, which is far more profitable than connecting traffic. And he said Charlotte is well-positioned because it serves the southeast market.

"I think it's between Philadelphia and Pittsburgh" if United does eliminate a hub, Roddey said.

"I can make a case for why you ought to keep Pittsburgh: It's a better airport, better weather, less crowded, more land to develop, all of those things," he said. "On the other hand, we're a 1.3 million population county, two-and-a-half million population region; Philadelphia is probably a four-and-a-half million region."

Others played down Roddey's concerns.

Michael Boyd, president of the Boyd Group, a Colorado-based aviation consulting firm, said Pittsburgh could be attractive to United because of the efficiency of the terminal, which has won rave reviews from travelers, the lack of air congestion compared with Chicago and East Coast airports and the availability of gates.

Indeed, if there's one asset Pittsburgh International isn't short of, it's gates.

Of 75 existing gates, 65 are being leased, 58 by US Airways. If more were needed, they could be added quickly. Not only can the X-shaped airside terminal be expanded by 25 gates without disrupting current operations, there is the potential to add a second 100-gate X-shaped terminal east of the existing one. Or smaller Y-shaped or V-shaped facilities, for that matter.

The people mover that takes travelers between ticketing and departure terminals can be extended to serve a second departure terminal.

"We'd be prepared to handle anything [United] wanted to do because we have the land," terminal architect Tasso Katselas said. "Most airports don't have the land."

Boyd doubts the additional gates would be needed if the United-US Airways merger wins approval. But he does see some potential for United to feed connecting traffic through Pittsburgh rather than Chicago, where backups and delays are common at O'Hare International Airport, the world's second-busiest.

"United gets complaints about connecting through Chicago," Boyd said. "They would not get complaints about connecting through Pittsburgh. By any measure of efficiency, Pittsburgh clearly has it hands down over Chicago. The only thing it doesn't have is the population."

Boyd and county Airport Authority Executive Director Kent George believe Philadelphia may be the most susceptible to hub cutbacks under a merger.

Boyd said Philadelphia, because of its proximity to other major Northeast and mid-Atlantic cities, is not a good connecting hub. United also has a strong presence nearby at Washington's Dulles and New York's Kennedy airports.

George said Philadelphia also may suffer because of air congestion.

"It's a delay-prone facility," he said.

Even in a worst-case scenario, with a merged United-US Airways pulling up local stakes, analysts doubt Pittsburgh would be abandoned.

Such a move, in fact, could open the door for American Airlines, which has a minimal presence in Pittsburgh and the Northeast and whose route system would feed into Pittsburgh International very effectively and efficiently.

Some analysts believe American may beef up in Pittsburgh anyway if it can't thwart the merger, in part to avoid conceding the East and West coasts to an even bigger United.

One thing is for sure: even if United-US Airways and American both want in, there's room.

"This is one facility that wasn't underbuilt," former Allegheny County Commissioner Tom Foerster said at the new airport terminal's dedication in 1992. Foerster, who died in January at age 71, played a lead role in constructing the facility.

At the time of its opening, the airport was expected within a decade to generate 30,000 new jobs, through the growth of aviation-related businesses and the development of county- and privately owned land around the airport.

The number of passengers using the airport was expected to nearly double, rising from 17 million in 1991 to 32 million by 2003. And even before the dedication ceremony was over, there was talk of building a fifth runway and a second terminal to accompany the new X-shaped building.

The airport hasn't lived up to the expectations. About 18.7 million passengers passed through it last year, the lowest total since 1993.

Development around the airport has been slow to happen until recently.

With domestic and international travel expected to greatly increase, the additional capacity could be a plus. The airport could be poised to take advantage of a rapid increase in air traffic over the next few years -through a merged United-US Airways or possibly someone else.

"It is as great an asset to Pittsburgh as Mellon Bank or USX," Boyd said. "The airport is to Pittsburgh what New York harbor is to New York City. It is the kind of asset a lot of cities the size of Pittsburgh would kill for."

GRAPHIC: PHOTO, INFORMATIONAL GRAPHIC, PHOTO: John Beale/Post-Gazette: Business as usual last week at; Pittsburgh International Airport.; INFORMATIONAL GRAPHIC: Tasso Katselas Associates Inc.; James; Hilston/Post-Gazette: Pittsburgh International Airport: Expansion; possibilities.

LOAD-DATE: June 9, 2000




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