Published: Thursday, November 12, 2009
Feds, airlines meet to address industry's troubles
WASHINGTON — The Obama administration is taking its first step toward trying to fix the ailing airline industry, mired in a severe economic slump and facing safety worries.
Transportation Secretary Ray LaHood is holding a forum today to discuss the state of the industry and ways government can help provide economic stability for air carriers. The industry has been rocked by repeated crises in recent years, including the 9/11 terror attacks, the SARS virus and the current economic downturn.
“U.S. aviation is facing severe economic uncertainty and an open and frank conversation will help begin a continuing dialogue about the industry's future,” agency spokeswoman Sasha Johnson said.
The Air Transport Association, which represents major carriers, says airlines are offering the fewest seats to passengers as measured by available seats and distance traveled in over a decade. Since 2000, airlines have shed more than 130,000 full-time jobs and lost an estimated $33 billion. Thirteen airlines have filed for bankruptcy in the past two years.
LaHood's invitation to aviation stakeholders says the forum, which is closed to the public and the media, was organized at the request of the AFL-CIO's Transportation Trades Department.
Ed Wytkind, the trades department's president, said the industry has become dysfunctional, and all involved are suffering.
He said he is hopeful the administration or Congress will create a blue-ribbon commission to recommend solutions.
“We can't keep doing things the exact same way and expect a better outcome,” Wytkind said, adding that there “probably” should be consideration of new regulatory authority for the industry.
Pat Friend, president of the Association of Flight Attendants, said she doesn't favor returning to the type of government supervision that existed before airline deregulation in 1978.
“But, there are some areas where we think you can tweak the deregulation,” she said.
Transportation Secretary Ray LaHood is holding a forum today to discuss the state of the industry and ways government can help provide economic stability for air carriers. The industry has been rocked by repeated crises in recent years, including the 9/11 terror attacks, the SARS virus and the current economic downturn.
“U.S. aviation is facing severe economic uncertainty and an open and frank conversation will help begin a continuing dialogue about the industry's future,” agency spokeswoman Sasha Johnson said.
The Air Transport Association, which represents major carriers, says airlines are offering the fewest seats to passengers as measured by available seats and distance traveled in over a decade. Since 2000, airlines have shed more than 130,000 full-time jobs and lost an estimated $33 billion. Thirteen airlines have filed for bankruptcy in the past two years.
LaHood's invitation to aviation stakeholders says the forum, which is closed to the public and the media, was organized at the request of the AFL-CIO's Transportation Trades Department.
Ed Wytkind, the trades department's president, said the industry has become dysfunctional, and all involved are suffering.
He said he is hopeful the administration or Congress will create a blue-ribbon commission to recommend solutions.
“We can't keep doing things the exact same way and expect a better outcome,” Wytkind said, adding that there “probably” should be consideration of new regulatory authority for the industry.
Pat Friend, president of the Association of Flight Attendants, said she doesn't favor returning to the type of government supervision that existed before airline deregulation in 1978.
“But, there are some areas where we think you can tweak the deregulation,” she said.
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