Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
US's Siegel Vs. ACI's Plavin On Airport Costs  
User currently offlineDCA-ROCguy From United States of America, joined Apr 2000, 4488 posts, RR: 33
Posted (11 years 2 months 3 weeks 4 days 17 hours ago) and read 1616 times:

Dear Gang,

Check out this food fight between the CEO of US Airways and the head of Airports Council International over airport bond costs:

http://www.aviationnow.com/avnow/news/channel_aviationdaily_story.jsp?id=news/usair05023.xml

We're all aware that US Airways rejected their PIT leases at the last minute before emerging from bankruptcy. It's very possible that United will do the same thing at DEN and possibly elsewhere.

It seems to me that Siegel is posturing for his negotiations with Allegheny County and PA over PIT. I don't think we're going to see this happen everywhere, though. PIT has circumstances that make it a white elephant. PIT was overbuilt at a weak O & D market back when US Airways ruled the Northeast and could charge what they wanted. Now the airline's got lower-cost competition, and they have realized that PHL is a much better market for a hub in a competitive world, even with its bad runway layout and terminal design.

At Denver, the city built a Taj Mahal when UA was fat and happy, and even when DIA opened people were complaining about the costs. I predict UA dumps those leases during bankruptcy.

But the fact is, people want to fly if the cost is right, and airport facilities are needed. I do think the market will be more rigorous about scrutinizing airport bonds, but I don't see a widespread inability of airports to build. Plavin's right to swing back at Siegel, but I'm not yet convinced that there's going to be a widespread financial crisis for airports. There will be some big defaults or bailouts, but most large airports in large markets will continue to have traffic and will be able to pay for their terminals.

Jim

Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
US Airways Warns Against Turkeys On Flights posted Tue Nov 14 2006 03:27:37 by Falstaff
Who Will Win In DL Vs. North American On JFK-ACC? posted Mon Oct 30 2006 01:50:28 by Atrude777
Law On Airport Grounds - Trespassing posted Mon Oct 9 2006 16:47:37 by VikingA346
Houston Spotters Article On Airport System Website posted Thu Oct 5 2006 22:29:16 by Philhyde
US Couple Tie The Knot On SAA posted Tue Sep 26 2006 21:20:38 by CraigW
US$198 Roundtrip JFK-LGW On Delta posted Wed Sep 6 2006 13:09:21 by Reggaebird
US To Ease Some Restrictions On Air Carry-On Items posted Sun Aug 13 2006 18:24:59 by Leelaw
The US "Embraer 170" On MCO's Website posted Wed Jul 12 2006 21:30:21 by Monorail
US To Add 6 More Seats On Its 319's posted Fri Jul 7 2006 22:59:23 by B6767200
VS Load Factors On LHR-DXB posted Thu Jul 6 2006 14:36:03 by JWMD123