War Could Cut Demand for Air Travel | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

** Airborne 12.19.14 ** HD iPad-Friendly -- Airborne 12.19.14 **
** Airborne 12.17.14 ** HD iPad-Friendly -- Airborne 12.17.14 **
** Airborne 12.15.14 ** HD iPad-Friendly -- Airborne 12.15.14 **

Wed, Mar 12, 2003

War Could Cut Demand for Air Travel

ATA Says 70,000 More Could Go Home

The Air Transport Association says that, if the US and Iraq go to war, demand for airlines' services may drop so far that as many as 70,000 people could get the axe.

The ATA says that such a war could lower the top line to major airlines by as much as $4 billion per quarter, as fuel costs and taxes eat up the industry from the middle and bottom of the income statement.

Without naming specific scenarios, the ATA noted that US Airways' emergence from Chapter 11 might not happen, and that United's news could get even worse; and that possibly American could join them in Chapter 11, if for no other reason than to stay competitive. [Chapter 11 firms don't have to pay on their 'prepetition debt,' what they owed before they filed for court protection, until after they emerge -- and then, it's usually a fraction of the actual amount --ed.]

The ATA further warned that the only way to spur air-travel demand might be to further cut prices. A tax cut would go a long way toward helping the industry stay afloat.

FMI: www.air-transport.org

Advertisement

More News

Airborne 12.17.14: Evergreen Woes, Foolish Pilot Tricks, No 757 Replacement--Yet

Also: $1M Aero-Photo, Draken Gets A-4s, 'Super Dell' Acts Super Dumb, Legendary Bell 47, Osprey Hours Evergreen Vintage Aircraft, LLC, the company that owns many of the aircraft on>[...]

Aero-TV: Redbird's Roger Sharp -- Pushing The Aero-Educational Envelope

One of The Most Important Aspects of GA is Flight Training... But Is The Industry Keeping Up With The Times? While at the Redbird Migration 2014, ANN CEO and Editor-In-Chief, Jim C>[...]

Aero-News: Quote Of The Day (12.19.14)

"This sale enables us to focus on improving Heathrow for passengers and winning support for Heathrow expansion." Source: John Holland-Kaye, Chief Executive of Heathrow.>[...]

AD: Airbus Airplanes

AD NUMBER: AD 2014-25-06 PRODUCT: All Airbus Model A300 series airplanes; Airbus Model A300 B4-600, B4-600R, and F4-600R series airplanes, and Model A300 C4-605R Variant F airplane>[...]

ANN's Daily Aero-Linx (12.19.14)

How GPS Works We know it sometimes seems like a magic box that knows all and tells all, but the basics of how your GPS works are really pretty simple.>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2014 Web Development & Design by Pauli Systems, LC