Copyright 2000 P.G. Publishing Co.
Pittsburgh
Post-Gazette
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August 23, 2000, Wednesday, SOONER EDITION
SECTION: NATIONAL, Pg. A-1
LENGTH: 777 words
HEADLINE:
SHUSTER: NO MERGER, NO HANGAR
BYLINE: FRANK REEVES,
POST-GAZETTE STAFF WRITER
BODY:
U.S. Rep.
Bud Shuster, one of Capitol Hill's most powerful lawmakers, yesterday warned
that plans to expand maintenance facilities at Pittsburgh International Airport
could be put in jeopardy if the merger between US
Airways and United Airlines is not approved.
Shuster's comments
appeared part of an effort to build public support for the proposed $ 11.6
billion merger by underscoring its importance to the region's economic
well-being.
"It is my understanding that US Airways has made no
commitment to expand the maintenance facility if the merger doesn't go through,"
said Shuster, chairman of the House Transportation and Infrastructure Committee.
US Airways officials "told me that there never was a commitment, absent the
merger." Lawrence Nagin, US Airways executive vice president and general
counsel, declined to comment on what the airline would do if the merger fails to
go through. He said US Airways officials remain focused on ensuring that the
merger with United is consummated.
Last month, United Airlines said it
would go ahead with a $ 160 million project to expand the maintenance facilities
if its acquisition of US Airways wins government approval.
The
announcement appeared to dispel what had been a major concern of regional
leaders: that the proposed merger, first announced in May, could result in the
elimination of many of the nearly 5,000 local maintenance jobs.
US
Airways is the region's dominant carrier and largest private employer, with
about 11,700 employees, including 4,900 mechanics and maintenance support
personnel. Its annual payroll is about $ 1 billion.
Kent George,
Allegheny County Airport Authority executive director, said he understood US
Airways' position to be that "if the merger doesn't go through, [US Airways
officials] would then address the subject at that time."
George noted
that US Airways and airport officials had been in negotiations over an expanded
maintenance facility, but that the negotiations broke off last fall without the
airline having made a firm commitment.
However, US Airways had indicated
at the time that it was committed to building a "major, world-class maintenance
facility" at Pittsburgh International. But instead of a massive $ 604 million
complex the county had sought, the airline said it preferred expanding existing
facilities at a cost of about $ 200 million to $ 240 million, local officials
said after a three-hour, Dec. 9 meeting at the airport between US Airways and
state and county leaders.
Shuster, who at first was skeptical about the
merger, has emerged as one of the deal's strongest backers in Congress. In June,
the House Transportation Committee was one of several congressional panels to
hold hearings on the proposed merger.
After listening to testimony from
airline officials, Shuster said he became persuaded the merger was a "an
extremely good deal" for Pittsburgh and Western Pennsylvania. He has repeatedly
warned that without the merger, US Airways' long-term viability is in doubt.
Yesterday, Shuster also took his case in favor of the merger to
Pennsylvania Attorney General Mike Fisher.
Fisher's office is reviewing
the impact of the merger on airline competition and prices in Pennsylvania.
But the primary stumbling block to the potential marriage is the U.S.
Justice Department, which could sue to block the merger if it believes it would
violate federal antitrust laws.
Shuster and his aides met with Fisher at
the attorney general's office in Harrisburg in what Shuster later described as
"a very constructive discussion."
"I believe they understand the
benefits and potential pitfalls of the merger," he said.
Shuster said he
believes Fisher's findings could also be influential in determining whether the
Justice Department decides to support or oppose the merger.
Sean
Connolly, Fisher's press secretary, said Fisher and his staff were continuing
their investigation into the impact the proposed merger would have on airline
competition and service in Pennsylvania. Connolly said he had no idea when the
attorney general's review would be completed.
Shuster yesterday also
released a letter, dated Aug. 22, to U.S. Transportation Secretary Rodney Slater
backing the proposed merger. It was signed by 17 members of Pennsylvania's U.S.
House delegation.
In the letter, the lawmakers said the merger "would
help promote economic growth and benefit the traveling public throughout"
Pennsylvania.
The lawmakers said that United commitment to expand the
maintenance facility as well as its guarantee that no one would be laid off as a
result of the merger had persuaded them to back the deal.
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