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Published today in Pennsylvania. USAirways has already pulled out of Pittsburgh over similar concerns leaving that airport a fiscal wreck. If it pulls out of Philadelphia there will be severe ramifications at T.F. Green. The airlines can and to pull out when the airports go too far with expansion plans. Where do you think the money is going to come from to extend Green's runway??????

Chester County Daily Local News

Airport expansion price scheme criticized

Published: Monday, January 16, 2012

US Airways said the economics of the expansion plan could force the airline to drastically reduce services.

Airport officials previously stated airport revenue bonds would constitute two-thirds of the expansion’s funding, while a variety of other funding sources — including user fees and additional grants — would make up the difference.

But US Airways’ analysis shows frightening numbers, Lehmacher said. Airline analysis shows the enhancement project threatens to raise airline costs by $3.6 billion over the next 13 years, he said.

“It’s easy to say just pass it on to the customer. But you have to keep in mind, the leisure customer is very price discriminate,” he said. “The ultimate reality is, we can divert services. We’re not at that point yet, but the economics are simple.”

And while the city has said the expansion plan would bring thousands of construction jobs, with fewer flights running into and out of the airport, airlines may cut back on employees, Lehmacher said.

However, Derenick-Lopez (Philadelphia Airport Spokesperson) said airport officials have yet to see any cost estimates from airlines as they continue to negotiate an agreement.

“We are currently negotiating the next use and lease agreement,” Derenick-Lopez said, adding that the current agreement expires at the end of the year. “We have a lot of time to negotiate.”

From: Council working on demands of airport

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