Rumors have swirled for weeks about the possible marriage between US Airways and United Airlines. Turns out, the effect of such a deal could be very different for Pittsburgh depending on which carrier ends up as the top dog. Because United already outsources mechanical work, it would have little use for the unionized mechanics who work near Pittsburgh International Airport. So it's no secret that local union leaders are hoping that US Airways would take the lead. Still, all this talk seems a tad premature, since the two airlines won't even say whether a merger is imminent. As Allegheny County Airport Authority Director Bradley Penrod said, "I think it's too early to know what's going to happen."

A negative return

When a cash-making machine like the University of Pittsburgh Medical Center ends up losing money, can flying pigs be far behind? The nonprofit giant reported last week that its balance sheet for the first nine months of the fiscal year showed a negative $7 million. UPMC blamed the surprising numbers on a slide in its investment portfolio and new capital expenditures. But don't start shedding tears for UPMC just yet. Higher operating revenue and more admissions were proof that it was still a "very solid performance," said Chief Financial Officer Robert DeMichiei.

In case you missed it ...

Before you drop that lovey-dovey letter to the editor in the mail tomorrow, make sure you use the right amount of postage. First-class stamps are going up a penny, to 42 cents.

Quality vs. currency

An expert on outsourcing, Venkatesh Roddam, visited Carnegie Mellon University last week to deliver the message that workers' expertise, not cost, will be the most important factor in determining where jobs go in the future. "Where things happen best is where they will happen -- not just because it is cheaper in a certain place," was Mr. Roddam's claim. In a perfect world, that may be true. But in this imperfect one, where the bottom line is always the bottom line, quality often takes a back seat to cash.

Quote of the week

"I think Pittsburgh would be a ghost town."

-- Bill Freiberger, of the International Association of Machinists and Aerospace Workers, about the possible local consequences should a US Airways-United deal result in United calling the shots

A work force less stout

The company that runs Guinness brewery said it would close two Irish plants, reduce operations at a third, and cut its staff on the Emerald Isle by almost 60 percent in a move aimed at competing with other European beer makers. Brian Duffy, global brand director for the brewer, said founder Arthur Guinness would approve. "He would tell us to hurry up and get on with it," Mr. Duffy said. That kind of feel-good leadership is just the ticket to keeping those laid-off workers from crying in their pints.

Also in business ...

Klaus Kleinfeld, long considered the heir apparent to Alcoa CEO Alain Belda, was officially given the job last week. Mr. Belda will continue as chairman of the board. ... The FedEx practice of classifying drivers as independent contractors, already the subject of a class-action suit and the cause of millions in IRS penalties, is under fire again, this time in the form of a suit from the Plumbers and Pipefitters Local 51 Pension Fund, which holds shares of the shipping company.