NY Times: Travelers Facing Deep Flight Cuts by Summer’s End

[marmar]

Travelers Facing Deep Flight Cuts by Summer’s End


By MICHELINE MAYNARD
Published: June 28, 2008


With summer barely under way, it may seem too early for travelers to start thinking about Labor Day. But that is when significant cuts in the airlines’ fleets and schedules will begin taking effect, making for a particularly jarring end to summer.

Across the United States, airports from La Guardia in New York to Oakland in California will be affected by flight cuts, bringing the industry down to a size last seen in 2002, when travel fell sharply after the 9/11 attacks.

Over all, the cuts will reduce flights this year by American carriers by almost 10 percent, industry analysts estimate, with even deeper cuts in store for 2009.

And if oil prices keep rising, airlines may have to keep paring their schedules, as they struggle to find ways to make money in light of rapidly rising jet fuel prices, which have climbed more than 80 percent in the last year.

This week, the country’s two biggest airlines, American and United, announced plans to lop cities like Fort Lauderdale, Fla., and San Luis Obispo, Calif., out of their networks. Cuts also are taking place on international routes to cities like London and Buenos Aires, and even to popular vacation destinations in the United States like Las Vegas, Honolulu and Orlando.

With more reductions coming next year, all the domestic industry’s growth over the last decade will most likely be lost. “The U.S. industry is undertaking a historic restructuring,” Gary Chase, an industry analyst with Lehman Brothers, wrote in a research report Friday.

Air fares, which are up about 17 percent this year on average, may rise as much as 40 percent within the next four years, Mr. Chase predicted. .......(more)

The complete piece is at: http://www.nytimes.com/2008/06/28/business/28shrink.html?hp

[Loge23]

1. Rail opportunity for the U.S.

The collaspe of the perennially mismanaged, and federally-supported, airline industry presents this country with yet another opportunity to restore and enhance inter-city passenger rail service.
Since it appears that we're falling into a prolonged recession, or depression, the governement could have invested heavily in putting people to work rebuilding the rail infrastructure. I say "could have" since the criminals who run our government decided instead to invade a country to support the oil industry instead of focusing on the crumbling infrastructure and effecient mass-transportation needs of their own country.
Roosevelt's response to the depression lifted this country to it's finest years. We were the envy of the world.
Now, it's all gone.