AccessMyLibrary provides FREE access to millions of articles from top publications available through your library.
If US Airways fails, what does future hold?
What would happen to Pittsburgh International Airport if US Airways slipped into bankruptcy?
Worse yet, what would happen if other airlines that serve the airport also succumbed to insolvency? Who would assume its estimated $700 million in outstanding bond debt?
Pittsburgh International would stay open, of course. But, experts say it would be weakened financially and could have trouble finding airlines to fill the void left by a departure of US Airways, which operates its largest hub in Pittsburgh.
Following terrorist hijackings last month, tightened security guidelines are choking flight schedules and many still are afraid to fly. US Airways and the majority of its competitors have had to cut capacity and personnel in an effort to stanch revenue losses that analysts contend could reach $10 billion by year's end.
Despite a $15 billion federal bailout, such grim events have called into question the future of US Airways and other airlines, as well as their ability to help pay off airport debt.
Both Standard & Poor's and Moody's have placed Pittsburgh International and all other US. airports on a credit watch list. Moody's changed the outlook on Pittsburgh International's bond rating to negative from stable. …