F9 Driver
Wear The Fox Hat
- Joined
- Dec 15, 2001
- Posts
- 515
http://www.house.gov/transportation/press/press2004/release57.html
It'll be interesting for sure, but I'm not sure what it'll accomplish. (other than burning some more tax $$)
U.S. House Committee on Transportation and Infrastructure
[size=+1]U.S. Rep. Don Young, Chairman[/size]
Contact: Steve Hansen (Director of Communications) (202) 225-7749
Email: [email protected]
Justin Harclerode (Deputy Director of Communications) (202) 226-8767
Email: [email protected]
To: National Desk/Transportation Reporter
June 1, 2004
[size=+2]Financial Condition Of Commercial Airline Industry To Be Topic Of Congressional Hearing;[/size]
[size=+1]U.S. Airlines Have Lost $24.8 Billion Since 2001[/size]
Washington, D.C. – U.S. commercial airline CEOs and industry experts will testify at a Congressional hearing on Thursday regarding the financial condition of the nation’s airline industry nearly three years after the 9/11 terrorist attacks.
The hearing by the U.S. House Aviation Subcommittee, chaired by U.S. Rep. John Mica (R-FL), is scheduled to begin at 10 a.m. on Thursday, June 3rd in 2167 Rayburn House Office Building. Live audio and video broadcasts of the hearing will be available at the Committee’s website: [size=+1]www.house.gov/transportation[/size]
[size=+1]Thursday’s Tentative Witness List[/size]Panel I
- Gordon M. Bethune, Chairman & Chief Executive Officer, Continental Airlines, Inc.
- Richard H. Anderson, Chief Executive Officer, Northwest Airlines, Inc.
- Joseph B. Leonard, Chairman & Chief Executive Officer, AirTran Airways, Inc.
- Douglas Parker, Chief Executive Officer, America West Airlines, Inc.
- Jeff Potter, President & Chief Executive Officer, Frontier Airlines
- Glenn F. Tilton, Chairman, President, & Chief Executive Officer, United Airlines
Panel II
- JayEtta Z. Hecker, Director, Physical Infrastructure Team, U.S. General Accounting Office
- Michael Kestenbaum, Executive Director, Air Transportation Stabilization Board
- Garrett Chase, Vice President, Lehman Brothers
- Philip A. Baggaley, CFA, Managing Director, Standard & Poor’s Ratings Services
[size=+1]11 Of 12 Airlines Rated As “Junk Bonds” By Standard & Poor’s[/size] From 2001 through 2003, the U.S. airline industry has reported net losses of $23.2 billion dollars compounded by an additional $1.6 billion in the first quarter of 2004. This $24.8 billion shortfall exceeds the total profits earned over the entire six-year period 1995-2000.
Since the beginning of 2001, airlines have accumulated vast amounts of debt to continue operating. Many of the carriers had to resort to the court system to avoid running out of cash and filed for bankruptcy protection. Though few analysts consider large liquidations to be imminent, it is widely acknowledged that most carriers could not withstand another severe external shock.
With industry debt well over $100 billion – much of it due in the next 24 months – 11 of the 12 passenger airlines are rated “junk bonds” by Standard & Poor’s.
The situation is being exacerbated by a sustained run-up in fuel prices that has turned 2004 into another difficult year for the industry overall. While Wall Street began the year putting the industry near breakeven status, the current consensus anticipates losses on the order of $3 billion or more in ’04 and additional losses very likely in 2005.
[size=+1]Airline Jobs At Lowest Level Since 1996[/size] Heavy financial losses have translated into heavy job losses. Within the first year after 9/11, nearly half the jobs lost in the U.S. economy were either in aviation itself or within the broader travel and tourism sector. According to DOT statistics, after consistent growth through the decade airline employment fell for the third consecutive year in 2003, down 31,000 jobs from 2002 and 110,000 jobs (or 16 percent) below the 2000 peak. At 571,000, airline jobs are now at their lowest level since 1996 and higher fuel prices are threatening to eliminate even more workers from the payroll and could compel further wage cuts at many carriers. Moreover, sharply rising fuel costs are threatening to slow substantially the earnings recovery in the airline industry, and perhaps send some airlines back into decline.
[size=+1]Rising Fuel & Security Costs In 2004 May Result In Large-Scale Layoffs & Service Reductions[/size] With annual totals of fuel and security costs expected to increase significantly in 2004 the airlines have been looking to cut costs. Large-scale layoffs and reductions in air service are not out of the question, particularly among the network carriers, who provide most, if not all service, to many small and medium-sized communities throughout the United States.
Although all U.S. airlines have faced many of the same challenges, including rising fuel prices, weak demand, long security lines, and a drop in business travel, a lower cost structure has helped several low cost carriers outperform the legacy carriers during this period.
In general, to help improve their financial situation many airlines cut costs by various means, notably by reducing labor expenditures and by decreasing capacity through cutting flight frequencies, using smaller aircraft, or eliminating service to some communities. Despite these efforts several airlines filed for bankruptcy protection.
In addition, since 9/11 Congress has either provided or made available several forms of financial relief amounting to well over $20 billion, including reimbursements for losses incurred from the 9/11 shut-down of air traffic, loan guarantees, funding for more secure cockpit doors, compensation for security fees paid r collected, war risk insurance, and pension funding relief. # # #
It'll be interesting for sure, but I'm not sure what it'll accomplish. (other than burning some more tax $$)
U.S. House Committee on Transportation and Infrastructure
[size=+1]U.S. Rep. Don Young, Chairman[/size]
Contact: Steve Hansen (Director of Communications) (202) 225-7749
Email: [email protected]
Justin Harclerode (Deputy Director of Communications) (202) 226-8767
Email: [email protected]
To: National Desk/Transportation Reporter
June 1, 2004
[size=+2]Financial Condition Of Commercial Airline Industry To Be Topic Of Congressional Hearing;[/size]
[size=+1]U.S. Airlines Have Lost $24.8 Billion Since 2001[/size]
Washington, D.C. – U.S. commercial airline CEOs and industry experts will testify at a Congressional hearing on Thursday regarding the financial condition of the nation’s airline industry nearly three years after the 9/11 terrorist attacks.
The hearing by the U.S. House Aviation Subcommittee, chaired by U.S. Rep. John Mica (R-FL), is scheduled to begin at 10 a.m. on Thursday, June 3rd in 2167 Rayburn House Office Building. Live audio and video broadcasts of the hearing will be available at the Committee’s website: [size=+1]www.house.gov/transportation[/size]
[size=+1]Thursday’s Tentative Witness List[/size]Panel I
- Gordon M. Bethune, Chairman & Chief Executive Officer, Continental Airlines, Inc.
- Richard H. Anderson, Chief Executive Officer, Northwest Airlines, Inc.
- Joseph B. Leonard, Chairman & Chief Executive Officer, AirTran Airways, Inc.
- Douglas Parker, Chief Executive Officer, America West Airlines, Inc.
- Jeff Potter, President & Chief Executive Officer, Frontier Airlines
- Glenn F. Tilton, Chairman, President, & Chief Executive Officer, United Airlines
Panel II
- JayEtta Z. Hecker, Director, Physical Infrastructure Team, U.S. General Accounting Office
- Michael Kestenbaum, Executive Director, Air Transportation Stabilization Board
- Garrett Chase, Vice President, Lehman Brothers
- Philip A. Baggaley, CFA, Managing Director, Standard & Poor’s Ratings Services
[size=+1]11 Of 12 Airlines Rated As “Junk Bonds” By Standard & Poor’s[/size] From 2001 through 2003, the U.S. airline industry has reported net losses of $23.2 billion dollars compounded by an additional $1.6 billion in the first quarter of 2004. This $24.8 billion shortfall exceeds the total profits earned over the entire six-year period 1995-2000.
Since the beginning of 2001, airlines have accumulated vast amounts of debt to continue operating. Many of the carriers had to resort to the court system to avoid running out of cash and filed for bankruptcy protection. Though few analysts consider large liquidations to be imminent, it is widely acknowledged that most carriers could not withstand another severe external shock.
With industry debt well over $100 billion – much of it due in the next 24 months – 11 of the 12 passenger airlines are rated “junk bonds” by Standard & Poor’s.
The situation is being exacerbated by a sustained run-up in fuel prices that has turned 2004 into another difficult year for the industry overall. While Wall Street began the year putting the industry near breakeven status, the current consensus anticipates losses on the order of $3 billion or more in ’04 and additional losses very likely in 2005.
[size=+1]Airline Jobs At Lowest Level Since 1996[/size] Heavy financial losses have translated into heavy job losses. Within the first year after 9/11, nearly half the jobs lost in the U.S. economy were either in aviation itself or within the broader travel and tourism sector. According to DOT statistics, after consistent growth through the decade airline employment fell for the third consecutive year in 2003, down 31,000 jobs from 2002 and 110,000 jobs (or 16 percent) below the 2000 peak. At 571,000, airline jobs are now at their lowest level since 1996 and higher fuel prices are threatening to eliminate even more workers from the payroll and could compel further wage cuts at many carriers. Moreover, sharply rising fuel costs are threatening to slow substantially the earnings recovery in the airline industry, and perhaps send some airlines back into decline.
[size=+1]Rising Fuel & Security Costs In 2004 May Result In Large-Scale Layoffs & Service Reductions[/size] With annual totals of fuel and security costs expected to increase significantly in 2004 the airlines have been looking to cut costs. Large-scale layoffs and reductions in air service are not out of the question, particularly among the network carriers, who provide most, if not all service, to many small and medium-sized communities throughout the United States.
Although all U.S. airlines have faced many of the same challenges, including rising fuel prices, weak demand, long security lines, and a drop in business travel, a lower cost structure has helped several low cost carriers outperform the legacy carriers during this period.
In general, to help improve their financial situation many airlines cut costs by various means, notably by reducing labor expenditures and by decreasing capacity through cutting flight frequencies, using smaller aircraft, or eliminating service to some communities. Despite these efforts several airlines filed for bankruptcy protection.
In addition, since 9/11 Congress has either provided or made available several forms of financial relief amounting to well over $20 billion, including reimbursements for losses incurred from the 9/11 shut-down of air traffic, loan guarantees, funding for more secure cockpit doors, compensation for security fees paid r collected, war risk insurance, and pension funding relief. # # #
