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 07.29.14/Oshkosh Day 2! ** HD iPad-Friendly Version--Airborne 07.29.14/Oshkosh Day 2 **
** Airborne 07.28.14/Oshkosh Day 1! ** HD iPad-Friendly Version--Airborne 07.28.14/Oshkosh Day 1 **

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

EAA AirVenture 2014 Welcomes The Boldest Human Space Mission Yet

Events To Highlight Industry Collaboration For Reaching The Planet Mars Leaders from the aerospace community held a press conference at EAA AirVenture on Monday to get the word out>[...]

Aspen Avionics, True Innovators, Present Oshkosh 2014 Special Event Coverage!

OSH2014 Sponsor: Aspen Avionics Aspen Avionics specializes in bringing the most advanced technology and capability into general aviation cockpits. Our products increase situational>[...]

Futuristic OSH2014 Sponsor: 'Beyond The Blue' - The Inside Story Of The XPRIZE

Meet Jim Campbell, TODAY/07.28, At EAA Wearhouse, Author's Corner, At 1500 And Get Your Signed Copy of Beyond The Blue!!! To Aviation Journalist and experienced Test Pilot, Jim Cam>[...]

Ready For Service... ConciAir Helps Present OSH2014!

ConciAir Is Here To Return Our Industry To Service! The name ConciAir is a play on the word "concierge", and our goal is to be able to accomplish any task placed before us in a tim>[...]

OSH2014 Sponsor: Eclipse Aerospace -- In Full Production!

The Eclipse 550: Economical. Efficient. Incredible. The Eclipse 550 not only has the lowest acquisition cost of any twin-engine jet on the planet, it also has the lowest operating >[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

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