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CNN Live At Daybreak

Airline Industry Hearing Today On Capitol Hill

Aired January 09, 2003 - 06:09   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.


JOHN VAUSE, CNN ANCHOR: Let's go back to that big airline hearing that we talked about a few moments ago.
CNN's Patty Davis reports on what we can expect during the Capitol Hill session.

(BEGIN VIDEOTAPE)

PATTY DAVIS, CNN CORRESPONDENT: Expect the airline executives to tell senators today the industry is in dire straight. Losses are estimated to be $9.5 billion last year, no end in sight. Two of the major airlines are in bankruptcy -- US Airways and United.

What passengers have seen are the big airlines trying to cut their costs, often in not-so-subtle ways -- not as many meals on shorter flights, charging for paper tickets, a third bag, even a heavier bag. In fact, American and Northwest are now charging for bags weighing 50 pounds. That cutoff used to be 70 pounds.

Business travelers say they don't like the new use-it-or-lose-it restrictions on nonrefundable fares, so they're now turning to low- fare carriers, like Southwest and JetBlue. Cheaper fares, fewer restrictions on those nonrefundable tickets, and you don't get meals anyway, so why pay more to ride on one of those major airlines?

The big airlines say those cuts are simply a matter of economic survival.

Patty Davis, CNN, Washington.

(END VIDEOTAPE)

CAROL COSTELLO, CNN ANCHOR: All right, thank you, Patty.

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 January 9, 2003 - 06:09   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN VAUSE, CNN ANCHOR: Let's go back to that big airline hearing that we talked about a few moments ago.
CNN's Patty Davis reports on what we can expect during the Capitol Hill session.

(BEGIN VIDEOTAPE)

PATTY DAVIS, CNN CORRESPONDENT: Expect the airline executives to tell senators today the industry is in dire straight. Losses are estimated to be $9.5 billion last year, no end in sight. Two of the major airlines are in bankruptcy -- US Airways and United.

What passengers have seen are the big airlines trying to cut their costs, often in not-so-subtle ways -- not as many meals on shorter flights, charging for paper tickets, a third bag, even a heavier bag. In fact, American and Northwest are now charging for bags weighing 50 pounds. That cutoff used to be 70 pounds.

Business travelers say they don't like the new use-it-or-lose-it restrictions on nonrefundable fares, so they're now turning to low- fare carriers, like Southwest and JetBlue. Cheaper fares, fewer restrictions on those nonrefundable tickets, and you don't get meals anyway, so why pay more to ride on one of those major airlines?

The big airlines say those cuts are simply a matter of economic survival.

Patty Davis, CNN, Washington.

(END VIDEOTAPE)

CAROL COSTELLO, CNN ANCHOR: All right, thank you, Patty.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.