Airline's threat of moving dismissed

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A move by US Airways to relocate out of Arlington would hurt the business image of the Washington area, but competing airlines quickly would fill the void, business leaders said yesterday.

"There's a very vibrant economy here," said Darryl Jenkins, director of George Washington University's Aviation Institute."It's not going to put it in the tank."

At a meeting Wednesday with reporters and editors at The Washington Times, US Airways' chief executive said he would move the airline's headquarters out of the D.C. area if it continues to operate unprofitably here. He also said the airline might cut its 164 daily flights at Ronald Reagan Washington National Airport.

He blamed Congress for interfering with the airline's business at the airport by unfairly restricting the number and length of its flights. He also said Virginia officials should offer incentives for US Airways to keep its operations in Arlington.

"We can't sustain our position at Reagan National in the long term if we continue to lose money," said David Siegel, US Airways president and chief executive officer. "If we can't figure out a way to make Reagan National profitable, we will get out."

For the D.C. area, a relocation by US Airways would be a "short-term hit" to the local economy, Mr. Jenkins said.

The airline employs 780 persons at its corporate headquarters and another 100 accounting staff members in the nearby Ballston neighborhood, making it one of the largest employers in Arlington County.

Mr. Jenkins said there was little doubt the threat by Mr. Siegel to leave was real.

"It is a credible threat," Mr. Jenkins said. "I don't think he's the kind of guy in a poker game who would bluff."