US Airways should drop the negotiations

Transportation and money don’t interact well in Allegheny County. After months of struggling… Transportation and money don’t interact well in Allegheny County. After months of struggling to make Port Authority buses affordable, the county now faces a financial crisis with air travel. US Airways, which handles 85 percent of the debt service payments for Pittsburgh International Airport’s newest terminal, has contacted Allegheny County Chief Executive Jim Roddey with plans to negotiate the airline’s lease.

While lease negotiations are permitted during bankruptcy, the resulting loss of funds will be detrimental to the Pittsburgh airport. Financial problems are not an excuse to paralyze an entire airport.

Like all airlines these days, US Airways is struggling. But things seemed to be improving. Last month, the company released a plan to emerge from bankruptcy by the end of March. A U.S. Bankruptcy judge approved the plan and it was believed that no changes would be required at the airport, so news of the negotiations came as quite a shock to airport and county officials.

US Airways claims the negotiations – essentially drastic cost cuts – are justified because the airline is changing its methods. Following the example of other struggling airlines, US Airways will now deploy dozens of smaller aircraft to Pittsburgh, focusing on regional rather than long-distance flights. The tactic is successful because, while prices are lower, more passengers are attracted and there are less overhead costs.

But since US Airways is so anxious to put its bankruptcy in the past, it should also put bankruptcy practices in the past. The message it’s sending to the Pittsburgh airport right now is little more than, “we’re having problems, give us low prices.” But by calling for negotiations, US Airways is shifting its financial woes and dumping them squarely on Allegheny County’s lap.

Roddey and other county officials expressed disappointment about the way US Airways handled the situation, saying it had always been very clear that it would not challenge the lease. If negotiations do not work out and the airline decides to leave, smaller airlines would be required to pick up the slack – a burden that is too heavy for them.

When dealing with the Pittsburgh airport, US Airways should take responsibility and continue to cut costs internally without jeopardizing the airport. By following through with lease negotiations, the airline may save some money, but it will likely lose the favor of an entire city.