US Airways Group stated in a Securities and Exchange Commission filing yesterday that a runway and terminal expansion at Philadelphia International Airport could harm its finances and business operations and force it to move flights elsewhere. The airline, which transports nearly 70% of the airport's total passenger number, included the statement in its 2011 annual report to federal regulators. Its objections were already well-known to Philadelphia officials. "If we are unable to operate profitably from Philadelphia, we may need to significantly reduce our business at Philadelphia, or move that business to another of our hubs," US Airways said.
US Airways spoke out after the city demanded that airlines sign a 15-year lease agreeing to pay for the runway. US Airways said that the expansion over the next 13 years would "result in huge cost increases for airlines serving Philadelphia" and that "expenditures have already begun." The city has estimated the total expansion cost at $6.4 billion. Airlines, which would foot much of the bill in rates and charges through debt service on airport revenue bonds, say it could cost $10.5 billion. The Federal Aviation Administration permits a $4.50 passenger facility charge on each departing traveler to defray costs of airport improvement projects.