Pittsburgh Post-Gazette

Airport could pay nearly $1.5M for Qatar Airways Cargo flights

- By Mark Belko

Pittsburgh Post-Gazette

The Allegheny County Airport Authority could end up paying Qatar Airways nearly $1.5 million in exchange for twice weekly cargo flights to and from Pittsburgh.

Under the terms of the oneyear agreement, the authority is obligated to pay Qatar a guaranteed “support fee” of $15,500 per flight for the first six months of the service. That works out to about $744,000.

The payments would be made even if Qatar, which began service at Pittsburgh Internatio­nal Airport last month, didn’t meet the goal of 60 tons of cargo, imports and exports, for each flight.

In the second half of the year, if the airline meets the goal, the required support fee would be decreased “based on calculatio­ns agreed to by the parties.” Those are not included in the agreement, and Alyson Walls, an authority spokeswoma­n, said they are to be negotiated.

Should Qatar fall short of the tonnage goals in the second half of the year, the authority would be requiredto pay $15,500 per flight to the airline for each month they arenot met.

Thatmeans the authority could end up on the hook for nearly $1.5 million over the life of the agreement.

Airport authority officials refused to release the incentives in announcing the start of the service, claiming it was not public informatio­n.

After the Pittsburgh Post-Gazette filed a right-to-know request, the authority provided a copy of the agreement with the support feesand tonnage goals redacted.

It argued that the informatio­n was protected from disclosure under the Pennsylvan­ia Uniform Trade Secret Act.

The Post-Gazette appealed the denial to the state and the authority agreed this week to release the informatio­n.

Ms. Walls said the authority still believes the fees are competitiv­e informatio­n and their release could hinder negotiatio­ns with airlines in the future. But after consulting with legal counsel and the airline, it decided “it’s an appropriat­e time” to release the informatio­n, she said.

Qatar is the first internatio­nal carrier to begin cargo service at Pittsburgh Internatio­nal, and the authority has touted it as a game changer and a tool to spur more developmen­t around the airport.

The Persian Gulf airline, based in Doha, has said it plans to transport 200 tons of cargo to and from Pittsburgh each week.

This isn’t the first time the authority is paying big incentives to land service at Pittsburgh Internatio­nal, which it operates. It is paying Alaska Airlines $500,000 over two years to start coveted nonstop service to Seattle next September.

The authority also is paying $800,000 over two years to Wow Airlines for the nonstop service between Pittsburgh and Iceland. Condor Airlines is receiving $500,000, also over two years, for seasonal flights to Frankfurt, Germany.

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