Airlines deal to alter little at Pittsburgh airport, analysts say
If US Airways were to merge with bankrupt American Airlines, such a combination would have little impact at Pittsburgh International Airport, airline experts said on Friday.
American is in the early stages of reorganizing in Chapter 11 bankruptcy in federal court in Ft. Worth, where it's based. Parent AMR Corp. has not submitted its formal reorganization plan, but US Airways Group wants to take over the carrier.
"Our intention would be to put our two complementary networks together, maintaining both airlines' existing hubs and aircraft, and create an airline that could compete successfully with United, Delta and other carriers within our industry," said US Airways chief executive Doug Parker in a letter to employees yesterday.
"A merger wouldn't have much effect on Pittsburgh at all," said Mike Boyd, an analyst and consultant at The Boyd Group, Evergreen, Colo., who has worked with Pittsburgh International over the years.
Boyd said American's route network is "weak" on the East Coast, so it could benefit by combining with US Airways, whose routes are heavily concentrated on the East Coast.
"It wouldn't add much flying in Pittsburgh, but it wouldn't take any flights away either," he said.
US Airways operates 43 daily flights at Pittsburgh International, and American operates 12. US Airways, the airport's largest carrier, flew 151,758 passengers at the airport in February, according to the latest data from the Allegheny County Airport Authority. American flew 42,928 passengers that month, roughly tied with Continental for fifth-most.
Bradley Penrod, the authority's executive director, said it was too early to estimate what the local impact would be.
"They have just started the process. So it's premature to say," Penrod said.
In Pittsburgh, US Airways employs 1,815 people, more than one-third of whom are mechanics, plus another 11 for its regional airline subsidiary Piedmont. American employs 41 people locally, all at its American Eagle subsidiary.
Boyd also thinks that if the airlines merged, the combined carrier would retain US Airways' modern, flight operations control center, which opened in Moon in late 2008.
AMR has asked the court for permission to void union contracts and cut 13,000 jobs. Such plans led three airline unions representing about 55,000 American pilots, flight attendants and mechanics to disclose on Thursday their support for US Airways' possible takeover of American.
A merged airline would save at least 6,200 of the 13,000 jobs that would be lost under American's go-it-alone plan, Parker said.
Parker cautioned his employees that the union deal does not mean a merger is in the works. A deal would need support from the AMR creditors management team and its board of directors, he noted.
"But this is obviously an important first step along that path and we are hopeful we can all work together to make this happen," Parker said.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Hotels, restaurants lead job additions in Pittsburgh region
- Hiring in shale industry shifts to engineering, construction workers
- Tech giants lead rush for profits in foreign countries
- U.S. Steel’s 2Q loss beats analysts’ estimates
- GNC revenue, sales drop, but vitamin retailer says plan in place
- Fed to keep cards close to the vest
- Consol Energy posts $25 million loss despite gas gains
- Home price gains slow for 6th-straight month
- Jimmy Dean moves beyond breakfast
- Market in neutral, awaiting economic news
- Amwell wastewater site to be shut down