A bumpy ride for US airlines
A report in The Denver Post says that financial troubles and cancellations over safety concerns have led to turbulence unlike any the flying public has encountered in recent years.
The situation has shown just how easily a dicey economy or flabby regulatory policies can throw the system into turmoil.
Of course, if the Federal Aviation Administration hadn’t been so cozy with airlines to begin with, travelers might not be in such dire straits today.
Now it seems as though matters may get worse before they get better, and the people who will pay the price are ordinary customers.
The bankruptcy filing Thursday by Frontier Airlines has the biggest potential to rattle the region. Along with being the second-largest carrier operating out of Denver International Airport, it also employs thousands of people in the area.
The budget carrier has pledged to continue flying, and we hope it is able to do so as it straightens out its financial difficulties in court.
With its bankruptcy filing, Frontier became the fourth carrier in less than a month to seek court protection.
Struggling with soaring fuel costs, it wouldn’t be surprising to see Frontier and others raise ticket prices to survive. That, in turn, could slow Colorado tourism as well as make it more expensive for Coloradans to travel elsewhere.
The regulatory problems that airlines have been working through in recent weeks haven’t helped matters, either.
First, there were embarrassing revelations that FAA officials were too cozy with Southwest Airlines, allowing the carrier to skate on certain safety checks.
In recent weeks, the FAA has proposed a $10.2 million fine against Southwest after it was disclosed that the airline continued to fly 46 jets that were late for safety inspections. FAA inspectors knew of the delays, yet looked the other way.
The trouble continued in recent days as American Airlines, embroiled in a dispute with the FAA over compliance with a 2006 directive, canceled more than 3,000 flights to check out and fix wiring in its planes.
Left in the lurch, once again, were passengers. Chaos reigned and thousands were stuck in airports or unable to get where they wanted to go.
The FAA, stung by the revelations of its relationship with airlines, is likely to keep playing hardball with carriers. That will result in more cancelled flights and more financial losses.
With every economic domino that falls, it seems likely this recession is going to cut deep. Bloomberg News reported that U.S. carriers will post combined losses of $1.2 billion in the first quarter.
The tough times faced by the airlines go hand in glove with the country’s difficult economic conditions. Unfortunately, neither seem as though they will clear up any time soon.
The flying public will just have to hold on for the ride.
A Report by The Mole from The Denver Pst
John Alwyn-Jones
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