Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, December 29, 1994 TAG: 9412290093
SECTION: BUSINESS PAGE: B-8 EDITION: NEW RIVER VALLEY
SOURCE: Associated Press
DATELINE: CHARLOTTE, N.C. LENGTH: Medium
Contingency plans include informal talks with domestic and foreign airlines that could start or expand service to Charlotte/Douglas International Airport.
As concerns over Arlington, Va.-based USAir's financial condition persist, officials also are working to boost cargo traffic. Efforts to transform a neighboring area into a public-private industrial park are well along.
And a committee of the Charlotte City Council will discuss a master plan for the airport community in January.
``The thought of USAir folding is frightening,'' said Lynn Wheeler, the chairman of the council's economic development committee. ``We are the city we are today because USAir has its hub here.''
USAir's hub at Charlotte/Douglas is one of the city's greatest draws for companies considering relocating.
In the last six weeks, General Tire Inc. and Sea-Land Service Inc. announced they were moving their headquarters to Charlotte. Charlotte/Douglas - with about 560 daily departures and international service to London and Frankfurt - played a crucial role in landing both companies.
But company officials were equally concerned about USAir's financial status, said Carroll Gray, president of the Charlotte Chamber of Commerce.
``Within the first 15 minutes, when we talk to a prospect, questions regarding USAir have to be dealt with,'' he said.
USAir has a $2.8 billion debt and is still reeling from two major crashes this year, but the airline is showing some signs of stability.
A cost-cutting agreement with its pilots' union is expected in the new year, a sign USAir may finally be getting a handle on costs. The holidays are the busiest travel time, which should improve the carrier's bottom line.
``We have no plans for any service cutbacks in the Charlotte area,'' said USAir spokesman Richard Weintraub, whose company employs 7,100-plus in Charlotte. ``We plan to be ever more a part of Charlotte's economy, because we plan to be there for a long time to come.''
But city leaders aren't expected to rely on assurances from a troubled airline responsible for two-thirds - $30 million - of the airport's annual revenue. USAir handles 94 percent of the traffic at Charlotte/Douglas.
USAir has said it wants to sell two-thirds of its fleet of Boeing 767s, the planes that fly to London and Frankfurt. That would open the door for other airlines to take over those routes. Gray said flights to Paris and Amsterdam also are possible.
``We've had contact with a couple of international carriers about this market within the last 90 days,'' he said. ``They're interested, but not serious at this point.''
Gray wouldn't say to whom the chamber has talked. Others, however, say executives at Lufthansa and Alitalia have been contacted.
Domestic carriers also have been queried about replacing some of USAir's flights if the airline scales back its service.
``United [Airlines] might be a possibility. They don't have a Southern hub,'' Gray said. ``But this chamber has not contacted anyone either formally or informally. Our position is that we're behind USAir.''
A chamber aviation committee is working to boost business at the airport. Direct flights to Japan and Korea are goals, said airport Aviation Director Jerry Orr, noting that Korean Airlines just announced service to Atlanta.
``We'll work at it until it happens,'' Orr said.
by CNB