There may be some selloffs in the market the first few days of strikes, but I think it wouldn't be too bad. The price of crude would go up, most of which would be OPEC voicing their displeasure. That would affect the smaller airlines whose fuel isn't as heavily hedged.
I think the overall effect on the airlines would be positive, since any step taken to eradicate terrorist states is good for the travel industry. Democratic governments in Iraq, Afghanistan, and elsewhere may even allow opening those countries to trade and let US airlines begin service to their cities.
If you look back at companies like AMR, DAL, and UAL, its interesting to note that their stock prices soared before, during, and after the Gulf War. However, that was back when the market was not quite as nervous and volatile as it is now, and the airline industry was significantly better off in general. I think the more interesting thing would be to look at how hiring changes/furloughs/pilot shortages were handled during the War, and whether any changes to those practices were beneficial or detrimental to the industry.
It's called the Civil Air Reserve fleet (IIRC) and just about everybody is in it. Govt. gives tax breaks or other incentives to carriers who sign up....it's not often they get used, so most companies look at it as a good deal. Even if they do get used, they get paid, so there isn't much of a downside.
I have 18 months left on my contract (I'm IRR - inactive reserves)....I hope I don't get called up. I would serve willingly and honorably if called up, but I still hope it doesn't happen. There's no question we're gonna schwack Iraq...it's just a question of when.
It is called Civil Reserve Air Fleet (CRAF) and instead of tax breaks the airlines that are involved in CRAF receive preferential treatment when applying for non-defense government buiness. The amount of business that is received from the government is in proportion to the number of aircraft made available to CRAF.
As of 2000 there are 38 air carriers involved to include Fed Ex to Delta Airlines to the old Sun Country. With all of these air carriers there are a total of 681 aircraft that can be assighned to CRAF. If all of CRAF aircraft were called for duty they would be able to haul 25 million ton miles a day. That is the same number of what the United States Airforce could also carry. Which equals a total of 50 million ton miles a day.
With this kind of air transport, it would not take long to get our forces on the borders of Iraq.
Joseph Biden says an attack on Iraq wouldnt happen until at least 2003, probably towards the end of that year, just before an election year. Funny how that works, get the presidents approval rating up with the false patriotism thats spoon fed to us during wartime and let old Dubya keep his job. Remember Bush senior's mistakes, how can a president with one of the highest approval ratings in our countries history during there term not be reelected?
Republican strategists arent going to let that happen again.
What has Iraq really done? I in no way support Saddam but lets look at the facts.
Weapons of mass destruction?
Pakistan and India both threatend and said they would use nuclear weapons {weapons of mass destruction?} if attacked, no sanctions were imposed and were not trying to overthrow there governments. In fact Pakistan is now our gretaest ally in "the war on terror"
UN Inspectors?
Didnt Israel and Ariel Sharon deny UN inspectors into Jenin? no sanciotns from the UN and we still give them Billions of our tax dollars every year. I believe Sharons argument was that the UN inspectors wouldnt be fair. Isnt that Saddams argument?
Iraq hasnt complied with UN resolutions?
Again neither has Isreal but we support them still, no immenint invasion of Israel to force them to comply.
Iraq has used weapons of mass destruction?
Iraq used those weapons while being supported by us during the iran/iraq war, we didnt impose sanctions or stop supporting saddam, it was basically overlooked when it suited our needs at the time.
Democracy would be good for Iraq?
yes of course, and it would be good for Saudi Arabia, Kuwait, Egypt, and countless other countries run by monarchs and dictators that we support.
Its these kind of policies that make us look bad in the eyes of the rest of the world and feed the diatribes of the likes of Bin Laden.The Iraqi people need a change to ease there sufferings, but this cowboy mentality is going to do anyone any good. Remeber our founding fathers werent afraid to question, and made sure that there was a system of checks and balances, not a blank check of force that the president can cash when he deeds to.
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