1,900 Pittsburgh-area jobs, flight center at stake if American, US Airways merge
A merger between US Airways Group and bankrupt American Airlines is unlikely to change either carrier's operations at Pittsburgh International Airport, said industry experts on Thursday.
At stake in the potential combination are more than 1,900 local jobs, a state-of-the-art flight operations center and repair center operated by US Airways and about 56 daily flights by both airlines.
After months of talks, the two carriers are intensifying discussions to agree on control of a combined company before confidentiality accords expire next week.
A deal would create the world's largest airline, vaulting it past rivals that eclipsed American amid a consolidation wave during the past decade.
Spokesmen for each airline declined to comment on the negotiations. Experts noted merger talks still could fall apart.
“I think it's a reasonable assumption that they may merge, but anything could happen,” said Darryl Jenkins, a veteran airline consultant in northern Virginia. “Airline deals are always difficult to do, and things happen at the last minute. Until something is final, it's always good to be cautious.”
US Airways, the nation's fifth-largest carrier, is headquartered in Tempe, Ariz. AMR Corp., the parent of third-largest American, is based in Fort Worth.
The possible merger gained support last month from an ad hoc group holding $1.5 billion in unsecured AMR debt, Bloomberg News reported. The bondholders are pushing for a deal by Feb. 15, the expiration date for non-disclosure agreements they signed with the two airlines.
US Airways still provides the most air service at Pittsburgh International, although its presence is substantially smaller than it was before dropping Pittsburgh as a hub for connecting flights in 2003.
“Initially, (a merger) shouldn't have any impact on air service here,” said JoAnn Jenny, spokeswoman for the Allegheny County Airport Authority, which operates Pittsburgh International.
“The only market where they overlap is New York, but it's also served by other carriers,” she said.
American, Delta, JetBlue and US Airways all fly from Pittsburgh to New York daily.
US Airways operates 41 daily departures from Pittsburgh to nine destinations. It employs 1,800 people locally, including flight and crew dispatchers at US Airways' flight operations control center in Moon Township.
The $25 million facility, which opened in late 2008, is the airline's nerve center, coordinating US Airways' more than 3,000 flights a day systemwide, along with the crews who staff them.
“That's a state-of-the-art facility,” said Jenkins. “If this were my merger, I'd hold onto that.”
American's flight operations control center is in Dallas. The analyst said it also would be used for many months if the carriers merged.
American operates 15 flights a day from Pittsburgh to four cities. The airline employs about 80 people here.
But even if American and US Airways strike a deal, it would be subject to months of scrutiny by antitrust enforcers in the Department of Justice, said Robert Mann Jr., head of R.W. Mann & Co. Inc., an airline consultant in Long Island, N.Y.
“This is kind of the end of the line for major airline consolidation, and Justice would want to make sure this got done right,” said Mann.
In the past six years, Continental merged into United, AirTran merged into Southwest, and Delta and Northwest combined. Mann noted the government reviewed the Delta-Northwest merger deal for a half-year before giving the combination a green light in mid-2008.
What's more, US Airways saw its May 2001 agreement to merge into United Airlines fall apart two months later when Justice declared it would sue to stop the deal out of antitrust concerns it posed on the East Coast.
Still unresolved is the role American CEO Tom Horton would play after a merger. US Airways' merger proposal calls for CEO Doug Parker to hold that position as well as chairman at the combined airline.
Bloomberg News contributed to this report. Thomas Olson is a staff writer for Trib Total Media. He can be reached at 412-320-7854 or firstname.lastname@example.org.
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.
- Falling demand for steel not likely to reverse any time soon
- Tourists rush to visit Cuba before Americans
- Aggressive drivers to face Progressive surcharges
- Credit card use reflects confidence, flat wages
- Dow Chemical, Olin in $5B cash-and-stock deal
- Economy in steady, but poky expansion
- Internet ‘one road in and out’ for rural users
- Reliable family car feels upscale
- Stocks snap 4-day losing streak; corporate earnings concerns linger
- Michigan man takes Heinz to court over Dip & Squeeze ketchup packet
- Toyota to carry new attitude into production