Company begins negotiations on a $160 million plan
that reaffirms commitment to Pittsburgh and Commonwealth of
Pennsylvania
FOR IMMEDIATE RELASE
WASHINGTON, July 20, 2000 – United Airlines announced
today that it will proceed with a $160 million plan to expand
maintenance operations and overhaul existing facilities in
Pittsburgh subject to approval of its merger with US Airways and the
successful outcome of negotiations with local authorities.
United has been studying the feasibility of expanding the
existing US Airways maintenance base since the merger was announced
on May 24. The base will consist of two new hangars with four
aircraft maintenance bays and will cost an estimated $130 million.
In addition, United plans to refurbish four existing US Airways
maintenance hangars at a cost of $30 million.
"We are absolutely delighted to reaffirm our commitment to the
City of Pittsburgh, to Allegheny County and to the Commonwealth of
Pennsylvania with this investment in maintenance facilities," said
James E. Goodwin, Chairman and Chief Executive Officer of United
Airlines. "These state-of-the-art facilities, once completed, will
complement United’s existing maintenance operations in San
Francisco, Oakland and Indianapolis and will provide United with the
best airline maintenance operation in the world."
"We have been absolutely firm in our commitment to a no-furlough
policy for employees of both airlines as a result of this
transaction," Goodwin said. "I hope our announcement today will
further reassure the employees of US Airways and the many public
officials who have worked with us on this project of United’s
absolute good faith in its commitment to Pittsburgh."
United has previously said that it plans to keep US Airways’
existing reservations center in Pittsburgh.
At a scheduled event today in Washington to announce the
maintenance project, Goodwin thanked the federal, state and local
officials and labor leaders who have worked with United in reaching
its decision. They include Gov. Tom Ridge of Pennsylvania, , Rep.
Bud Shuster (R-Pa), Sen. Arlen Specter (R-Pa); Sen. Rick Santorum
(R-Pa), Rep. Ron Klink (D-PA), Rep. Frank R. Mascara (D-Pa), Mayor
Tom Murphy of Pittsburgh, Allegheny County Executive James Roddey,
and Tom Buffenbarger, international president of the IAM.
"Pittsburgh has been the home of high-quality aircraft
maintenance for many years and will be for many years to come," said
US Airways Chairman Stephen M. Wolf. "This is good news for the
Pittsburgh regional economy and for the many US Airways maintenance
employees who live in the Pittsburgh area."
In addition to the maintenance facilities, United has pledged to
maintain all service at Pittsburgh International Airport, which will
remain an important hub once the merger is completed. United plans
to offer non-stop or one-stop service from Pittsburgh to 254
domestic and international destinations, including new daily
non-stop service to San Jose, Calif., and Portland, Oregon, and two
additional daily non-stops flights to Denver. In addition, United
has announced new one-stop service it intends to operate to several
Asian/Pacific and Latin American cities.
US Airways currently has more than 11,000 employees in the
Pittsburgh area, including about 2,900 who work in the maintenance
division.
United announced its transaction to acquire US Airways and merge
the two companies on May 24, and expects to complete the transaction
by the first quarter of 2001, subject to gaining all necessary
regulatory approvals. The merged airline would operate a fleet of
approximately 1,000 aircraft and would serve 163 destinations with
more than 4,278 daily flights.
United Airlines offers more than 2,400 scheduled flights a day on
a route network that spans the globe.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
: This press release contains certain
"forward-looking" statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are based
on management’s current expectations and are naturally subject to
uncertainty and changes in circumstances. Actual results may vary
materially from the expectations contained herein. The
forward-looking statements contained herein include statements about
future financial and operating results and benefits of the pending
merger between United and US Airways. Factors that could cause
actual results to differ materially from those described herein
include: industry capacity decisions; the airline pricing
environment; competitors’ route decisions; the inability to obtain
regulatory approvals; actions of the U.S., foreign and local
governments; domestic and international travel patterns; the
inability to successfully integrate the businesses of United and US
Airways; costs related to the merger; the inability to achieve cost
cutting synergies resulting from the merger; labor integration
issues; the economic environment of the airline industry and the
general economic environment. More detailed information about these
factors is set forth in the reports filed by United and US Airways
with the Securities and Exchange Commission. Neither United nor US
Airways is under any obligation to (and expressly disclaims any such
obligation to) update or alter its forward-looking statements,
whether as a result of new information, future events or
otherwise.
