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CNN Live Sunday
What Impact Will War Have on Travel Industry?
Aired March 16, 2003 - 19:46 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.
ANDERSON COOPER, CNN ANCHOR: Here's a topic that is getting a lot of discussion these days. If there is a war in Iraq, what will happen to the already ailing travel industry? Would you cancel your plans or take a trip anyway? CNN's Patty Davis takes a look.
(BEGIN VIDEOTAPE)
PATTY DAVIS, CNN CORRESPONDENT (voice-over): Sean Schultz (ph) says a war with Iraq wouldn't keep him from flying for his telecommunications job.
UNIDENTIFIED MALE: I think the security will be just even more tight than it is now.
DAVIS: But the idea makes his wife Marny (ph) nervous.
UNIDENTIFIED FEMALE: I probably would be a little bit more hesitant than under the conditions pre-9/11.
DAVIS: The possibility of war with Iraq has the airlines on edge, too. They're predicting a 15 percent drop in bookings once fighting starts, and a spike in jet fuel prices, which have already doubled in the past year. A recipe, airlines say, for financial disaster.
JIM MAY, AIR TRANSPORT ASSOCIATION: We will see more airlines going to Chapter 11. We could well see some airlines liquidate, and in the worst case scenario, we could see the government being forced to take over all or part of some of these airlines in a nationalization.
DAVIS: The airlines are working to keep reservations rolling in. If there's war, many say they'll waive $100 change penalties, allowing passengers who get cold feet to rebook later.
TOM PARSONS, BESTFARES.COM: It's very important that you look at each and every airline, and especially the airline you're going to buy that ticket from, what their rules and policies are.
DAVIS: Many cruise lines are also worried about a drop in business and are allowing penalty-free changes.
If the U.S. goes to war with Iraq and you're looking to cancel your trip and get a refund, you don't have many options. Travel insurance most likely won't protect you. AMY ZIFF, TRAVELOCITY: With the case of insurance, war is actually an exclusion in 99 percent of all of the cases, so if you think that you're going to be insured against war, most likely you're not. Read the fine print.
DAVIS: But airlines do have to give you your money back if they cancel your flight due to war.
(on camera): For those who aren't deterred by war, it's already a buyers' market, as airlines lower fares to attract business. Travel experts say it's a good time to snap a bargain.
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 March 16, 2003 - 19:46 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANDERSON COOPER, CNN ANCHOR: Here's a topic that is getting a lot of discussion these days. If there is a war in Iraq, what will happen to the already ailing travel industry? Would you cancel your plans or take a trip anyway? CNN's Patty Davis takes a look.
(BEGIN VIDEOTAPE)
PATTY DAVIS, CNN CORRESPONDENT (voice-over): Sean Schultz (ph) says a war with Iraq wouldn't keep him from flying for his telecommunications job.
UNIDENTIFIED MALE: I think the security will be just even more tight than it is now.
DAVIS: But the idea makes his wife Marny (ph) nervous.
UNIDENTIFIED FEMALE: I probably would be a little bit more hesitant than under the conditions pre-9/11.
DAVIS: The possibility of war with Iraq has the airlines on edge, too. They're predicting a 15 percent drop in bookings once fighting starts, and a spike in jet fuel prices, which have already doubled in the past year. A recipe, airlines say, for financial disaster.
JIM MAY, AIR TRANSPORT ASSOCIATION: We will see more airlines going to Chapter 11. We could well see some airlines liquidate, and in the worst case scenario, we could see the government being forced to take over all or part of some of these airlines in a nationalization.
DAVIS: The airlines are working to keep reservations rolling in. If there's war, many say they'll waive $100 change penalties, allowing passengers who get cold feet to rebook later.
TOM PARSONS, BESTFARES.COM: It's very important that you look at each and every airline, and especially the airline you're going to buy that ticket from, what their rules and policies are.
DAVIS: Many cruise lines are also worried about a drop in business and are allowing penalty-free changes.
If the U.S. goes to war with Iraq and you're looking to cancel your trip and get a refund, you don't have many options. Travel insurance most likely won't protect you. AMY ZIFF, TRAVELOCITY: With the case of insurance, war is actually an exclusion in 99 percent of all of the cases, so if you think that you're going to be insured against war, most likely you're not. Read the fine print.
DAVIS: But airlines do have to give you your money back if they cancel your flight due to war.
(on camera): For those who aren't deterred by war, it's already a buyers' market, as airlines lower fares to attract business. Travel experts say it's a good time to snap a bargain.
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
