Tuesday, June 10, 2003
By Frank Reeves, Post-Gazette Staff Writer
Speaking on the eve of critical talks with state leaders, US Airways Chief Executive Officer David Siegel warned that the carrier is "fully prepared to exit Pittsburgh" if a way cannot be found to lower its costs here.
"We have contingency plans," Siegel said in answer to a question during a question-and-answer session following a speech today to the Merrill Lynch Global Transportation Conference in New York. He added, however, that he was "optimistic we'll find some way to resolve" the issue.
"We're going to make money," Siegel said. "If we can't get the right cost structure, we'll exit Pittsburgh."
The comments came a day before Siegel is scheduled to meet with the state's top political leaders as well as Pittsburgh Mayor Tom Murphy and Allegheny County Chief Executive Jim Roddey tomorrow in Washington, D.C., to discuss the future of the airline's operations in Pittsburgh and Philadelphia.
The outcome of the discussions could determine the fate of more than 15,000 US Airways employees in Pennsylvania, including some 9,000 in the Pittsburgh area.
The closed-door afternoon meeting was arranged by U.S. Sen. Arlen Specter and is slated to also include Gov. Ed Rendell, U.S. Sen. Rick Santorum, most of the state's congressional delegation as well as top Philadelphia officials.
It's the first high-profile meeting between the groups since the airline in March abruptly canceled its leases at Pittsburgh International Airport and threatened to abandon Pittsburgh as a hub unless it can significantly lower its costs at the airport. The airline also has requested millions of dollars in capital improvements at both the Pittsburgh and Philadelphia airports.
By Frank Reeves, Post-Gazette Staff Writer
Speaking on the eve of critical talks with state leaders, US Airways Chief Executive Officer David Siegel warned that the carrier is "fully prepared to exit Pittsburgh" if a way cannot be found to lower its costs here.
"We have contingency plans," Siegel said in answer to a question during a question-and-answer session following a speech today to the Merrill Lynch Global Transportation Conference in New York. He added, however, that he was "optimistic we'll find some way to resolve" the issue.
"We're going to make money," Siegel said. "If we can't get the right cost structure, we'll exit Pittsburgh."
The comments came a day before Siegel is scheduled to meet with the state's top political leaders as well as Pittsburgh Mayor Tom Murphy and Allegheny County Chief Executive Jim Roddey tomorrow in Washington, D.C., to discuss the future of the airline's operations in Pittsburgh and Philadelphia.
The outcome of the discussions could determine the fate of more than 15,000 US Airways employees in Pennsylvania, including some 9,000 in the Pittsburgh area.
The closed-door afternoon meeting was arranged by U.S. Sen. Arlen Specter and is slated to also include Gov. Ed Rendell, U.S. Sen. Rick Santorum, most of the state's congressional delegation as well as top Philadelphia officials.
It's the first high-profile meeting between the groups since the airline in March abruptly canceled its leases at Pittsburgh International Airport and threatened to abandon Pittsburgh as a hub unless it can significantly lower its costs at the airport. The airline also has requested millions of dollars in capital improvements at both the Pittsburgh and Philadelphia airports.
