US Airways Watch US Airways has notified all employees that it would like to terminate retiree health benefits Jan. 1 for pilots, flight attendants, passenger service workers, machinists, baggage handlers and many nonunion employees. Prescription drug coverage would still be available for retirees 65 and older through the end of 2005, according to letters sent out Friday, and people who retire after Jan. 1 can utilize their sick leave credits to reduce the costs, either in increments or as a lump sum. Pilots who retire before Jan. 1 will be entitled to retiree health and dental benefits until age 65. The cuts, which still have to be negotiated with employees and approved by a U.S. Bankruptcy Court judge, would save the company up to $87 million a year, court documents say. US Airways also told employees in a letter that it "intends" to terminate the flight attendants' and machinists' defined benefit pension plans while in bankruptcy. United Airlines, another bankrupt carrier, is also trying to terminate the pension plans of its employees. Both need court approval for such an action. A U.S. Bankruptcy Court hearing today in Alexandria, Va., will determine whether US Airways has more time to keep or reject certain property leases. Allegheny County Airport Authority, worried about US Airways' gates at Pittsburgh International Airport, wants the company to make its decision by Jan. 20. The airline wants to wait until April 30. -- Dan Fitzpatrick

Pittsburgh International Airport officially lost its status as a US Airways hub on Sunday, prompting the closing of the airport's commuter terminal and a cutback in the hours of airport retailers and restaurants yesterday.

The moves came in response to the latest reductions by bankrupt US Airways, which started the week with 229 daily flights out of Pittsburgh, down from 373 in July and 327 in September. The 229 figure includes mainline and commuter flights.

With the cutbacks, Pittsburgh becomes a "focus city" in the US Airways system after spending decades as the airline's largest hub. The airline began serving Pittsburgh in 1949 and quickly made the city's airport the focal point of its operations and growth.

But the last few years have been ones of retrenchment for Pittsburgh's dominant carrier.

Now the emphasis will shift to point-to-point flying aimed at serving the local market, although about 40 percent of all passengers still will make connections, according to US Airways.

"This company has a lot of problems. It's a shame. It's a once-great company that has made a decision not to hub in Pittsburgh," Allegheny County Chief Executive Dan Onorato said.

The US Airways reductions have created room to spare at the airport, allowing the authority to close down the commuter terminal yesterday. The US Airways flights that departed from that facility have been moved to Concourse A of the main terminal.

With the changes, all US Airways operations will be consolidated in the airport's A and B concourses.

The cutbacks also will affect the operating hours of the airport's Airmall, the collection of shops and restaurants annually rated among the best in the world.

Mark Knight, president of BAA Pittsburgh, the Airmall manager, said stores and eateries now are closing at 8:30 p.m. on weekdays instead of 10 p.m. The earlier closing is timed to coincide with the last arrivals and departures of US Airways flights.

"I think that we will still serve the customers that are there and save some hours when people aren't there," Knight said.

He viewed the closing of the commuter terminal as a good move for the Airmall because it will bring more passenger traffic to the Airside Building, where nearly all of the shops and restaurants are located.

Even with the constant stream of cutbacks by US Airways, Knight said, the Airmall has had a good year so far. Overall, he expects sales to be up slightly or about even for the year even though US Airways has slashed 144 daily flights since July.

He said the Airmall will have to continue to adjust to the new realities posed by the US Airways retrenchment, but he still believes merchants can be successful.

"Even with the reduced traffic, the layout of Pittsburgh [International Airport] is fabulous and there will still be enough passengers to make it a very viable project," he said.

BAA and airport officials also are hoping the U.S. Transportation Security Administration will approve a pilot program within the next few weeks that will give non-passengers access to the Airside Building, the airport's boarding terminal.

That terminal has been shut off to non-passengers since the Sept. 11, 2001, terrorist attacks. Knight said opening it again to visitors could boost sales by as much as 5 percent.

"I think it will be a plus for us," he said.