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CNN Live At Daybreak
U.S. Airline Industry Still Swimming in Red Ink
Aired September 23, 2002 - 05:10 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CATHERINE CALLAWAY, CNN ANCHOR: The U.S. airline industry is still swimming in red ink more than a year after the terror attacks. Now with a potential war with Iraq looming, some carriers could have some trouble staying in business.
Here's CNN's Patty Davis with more.
(BEGIN VIDEOTAPE)
PATTY DAVIS, CNN CORRESPONDENT (voice-over): Stephen Langley is flying from Washington, D.C. to Vermont. Langley says he might fly less often if the U.S. goes to war with Iraq.
STEPHEN LANGLEY, AIRLINE PASSENGER: Certainly if that would increase the potential, shall we say, in my mind, of something happening here, yes, it would affect how often I'd fly.
DAVIS: Though President Bush hasn't yet decided to go ahead with military action against Iraq, attitudes like Langley's, typical during war, and an expected war time surge in jet fuel prices have airlines worried.
CAROL HALLETT, PRESIDENT & CEO, AIR TRANSPORT ASSOCIATION: If we were to see an 88 percent jump in the price of fuel, as we did during the Gulf War, we would probably see most of our airlines filing for Chapter 11.
DAVIS: Many U.S. airlines are already experiencing financial turbulence. Last year, airlines lost more than $7 billion due to the September 11 terror attacks recession. They're expected to lose more than $6 billion this year. This summer, U.S. Airways declared bankruptcy. United may be next. If there's war, passenger groups say airlines will pass higher costs along.
DAVID STEMPLER, AIR TRAVELERS ASSOCIATION: The airlines tend to apply those additional surcharges to tickets for these fuel increases and airline passengers at the end will pay that.
DAVIS: Despite a $5 billion cash infusion from the federal government after the September 11 terror attacks, airlines say they need more help. They're asking Congress to pick up more of the tab for aviation security, suspend the jet fuel tax and help with war risk insurance.
REP. JOHN MICA, (R-FL), CHAIRMAN, AVIATION SUBCOMMITTEE: It's important from Congress's standpoint that we try to preserve jobs, that we try to keep this key economic engine moving. So we're going to look at all of our options.
DAVIS (on camera): Passenger groups say travelers have an option: avoid a war time fuel surcharge by planning future airline trips now. Buy ahead and lock in today's lower fares.
Patty Davis, CNN, at Reagan National Airport.
(END VIDEOTAPE)
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired September 23, 2002 - 05:10 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CATHERINE CALLAWAY, CNN ANCHOR: The U.S. airline industry is still swimming in red ink more than a year after the terror attacks. Now with a potential war with Iraq looming, some carriers could have some trouble staying in business.
Here's CNN's Patty Davis with more.
(BEGIN VIDEOTAPE)
PATTY DAVIS, CNN CORRESPONDENT (voice-over): Stephen Langley is flying from Washington, D.C. to Vermont. Langley says he might fly less often if the U.S. goes to war with Iraq.
STEPHEN LANGLEY, AIRLINE PASSENGER: Certainly if that would increase the potential, shall we say, in my mind, of something happening here, yes, it would affect how often I'd fly.
DAVIS: Though President Bush hasn't yet decided to go ahead with military action against Iraq, attitudes like Langley's, typical during war, and an expected war time surge in jet fuel prices have airlines worried.
CAROL HALLETT, PRESIDENT & CEO, AIR TRANSPORT ASSOCIATION: If we were to see an 88 percent jump in the price of fuel, as we did during the Gulf War, we would probably see most of our airlines filing for Chapter 11.
DAVIS: Many U.S. airlines are already experiencing financial turbulence. Last year, airlines lost more than $7 billion due to the September 11 terror attacks recession. They're expected to lose more than $6 billion this year. This summer, U.S. Airways declared bankruptcy. United may be next. If there's war, passenger groups say airlines will pass higher costs along.
DAVID STEMPLER, AIR TRAVELERS ASSOCIATION: The airlines tend to apply those additional surcharges to tickets for these fuel increases and airline passengers at the end will pay that.
DAVIS: Despite a $5 billion cash infusion from the federal government after the September 11 terror attacks, airlines say they need more help. They're asking Congress to pick up more of the tab for aviation security, suspend the jet fuel tax and help with war risk insurance.
REP. JOHN MICA, (R-FL), CHAIRMAN, AVIATION SUBCOMMITTEE: It's important from Congress's standpoint that we try to preserve jobs, that we try to keep this key economic engine moving. So we're going to look at all of our options.
DAVIS (on camera): Passenger groups say travelers have an option: avoid a war time fuel surcharge by planning future airline trips now. Buy ahead and lock in today's lower fares.
Patty Davis, CNN, at Reagan National Airport.
(END VIDEOTAPE)
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
