Effects of Merger up in the Air

Effects of Merger up in the Air

No, we’re not talking about a City-County merger: that idea has not surfaced since the 2008 Nordenberg report was unveiled and got a lukewarm response. Nor are we referring to the proposed idea of the County Executive to create a SEPTA 2.0 in southwestern Pennsylvania out of PAT and other regional carriers: when the Exec traveled to Harrisburg this week to talk mass transit, he just pleaded for more money for the Port Authority.

Instead the subject is a possible merger between US Airways and American Airlines, and what, if anything, it would mean for Pittsburgh International Airport. One analyst stated there could be a "moderate increase" in Pittsburgh’s business but conditioned that upon whether "landing fees can come down". Duplication of flight destinations or maintenance could mean less potential for positive effects. Another analyst bluntly stated "don’t believe for a second that it’s going to do anything to increase any kind of traffic out of Pittsburgh."

In 2001 US Airways had 12,000 employees in Allegheny County, representing about 2% of total employment and making it the fourth largest employer in the County. Ten years later it does not even appear in the County’s financials on its list of top ten principal employers. Passenger volume fell 33% through the decade while operating expenses rose 22%. On a per passenger basis, operating expenditures have climbed from $3.42 to $6.23. Fees dropped in the 2012 fiscal year but the airport’s "cost per enplanement" was still characterized as high when the fee reduction was announced.