The Airport Authority has plans for a USD 1.1 B modernization

Pittsburgh Airport Reauthorized to Receive Pennsylvania’s Gambling Expansion Funds

The airport has been receiving $12.4 million a year from a slots-financed economic development fund for about the past decade.
2017-12-11
Reading time 1:49 min
Pittsburgh International Airport will continue to receive USD 12.4 M a year for economic development and to reduce costs to the airlines that use it.

In accordance with the bill enacted in October, the funding from the state’s gambling expansion will continue into the future unless there is some change in the gambling law.

The reauthorization was sponsored by state Sen. Jay Costa, D-Forest Hills, without whom the funding would have ended in the 2018-2019 state fiscal year.

Christina Cassotis, CEO of the Allegheny County Airport Authority, which operates Pittsburgh International, said the money will continue to be used to help pay debt service and for economic development, including incentives paid to airlines to start flights in Pittsburgh.

“It’s incredibly important because it’s a validation of the strategy. It’s a validation of what we’re doing and how we’re using the money,” she said
“The fact the Legislature made that choice, to me, is a sign that they are comfortable with how we are administering those funds and what we are using them for.”

The airport has been receiving $12.4 million a year from a slots-financed economic development fund for about the past decade. The money was first awarded at a time the authority was struggling to cut costs to the airlines after US Airways closed its Pittsburgh hub in 2004.

Ms. Cassotis said the bulk of the money will continue to be used to help lower the airport’s debt and “keep our costs competitive.”

The authority has plans for a USD 1.1 B modernization that includes a new building for ticketing and security, a new parking garage and a streamlined boarding facility.

Ms. Cassotis said the authority intends to use the state money to help with the debt on the new bonds needed to finance the modernization. 

That, in turn, would help to keep costs to the airlines lower since they are the ones responsible for paying debt service and financing the authority’s budget through airport rates and charges.

A “small portion” of the money would be used to provide incentives to airlines that start flights to new destinations, Ms. Cassotis said.

In the last year alone, the authority has agreed to pay out up to nearly $3.4 million in incentives to airlines to start passenger service to Frankfurt, Germany; Iceland; Seattle; Montreal; and Sarasota/Bradenton; and cargo flights between Pittsburgh and Doha.

Mr. Costa, the Senate minority leader, said he is “very comfortable” with the airport authority using part of the money to provide incentives to airlines to start service.

Mr. Costa added that he decided to include the reauthorization of the funding in the gambling expansion so that the authority could keep costs to the airlines as low as possible.“I feel strongly that the airport is one of our strongest economic development opportunities for our region,” he said.

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