Aug. 4--FINDLAY TWP. -- The Allegheny County Airport Authority filed an objection Tuesday to US Airways' reorganization plan for emerging from bankruptcy.
The authority is mainly concerned with getting adequate notice on the status of its contracts with the airline, especially with long-term arrangements, Executive Director Kent G. George said in a press release. The airport authority, which operates Pittsburgh International Airport, wants to have notice of any rejected contract "given well in advance" of the hearing for the proposed reorganization plan. The airport authority also wants to have a certain date set for allowing contracts to be rejected.
In its disclosure statement, which was sent to all of US Airways' creditors for approval, the airline asked to be allowed to reject leases outside of bankruptcy, which would be a special exception. US Airways has leases on 10 gates at Pittsburgh International through 2018, the authority said. It also leases 40 other gates on a month-to-month basis.
Though the authority supports the proposed merger of US Airways and America West as part of the reorganization, the press release said, "In light of what the airline did on its emergence from its last bankruptcy, we are very concerned about ensuring that parties to contracts are afforded notice and the opportunity to be heard," George said. "The objection filed today only seeks to achieve that goal." Twenty minutes before US Airways emerged from its first bankruptcy in March 2003, it rejected all of its Pittsburgh-area leases, including those with the airport, after airport officials said they'd been assured the leases were remaining intact.
"We have a well-thought-out plan that has been well received by a vast number of stakeholders, and we will be addressing specific objections and concerns at the bankruptcy court hearing next Tuesday," said David Castelveter, US Airways spokesman.
